90 N.Y.S. 488 | N.Y. App. Div. | 1904
The relators are the trustees of an academy in the town of Ossining, incorporated by special act, chapter 107 of the Laws of 1820. In 1827, under the general law, chapter 59 of the Revised Laws of 1813, the trustees received a charter from the Board of Regents, and the academy has since been subject to visitation, inspection and control by that board. The trustees have made and filed with that board the annual statement required by law and the rules of the board, showing receipts, disbursements, its property and the curriculum required by the academy. From time to time the school has shared in the apportionment of moneys provided by the Legislature for support and maintenance of academies. The learned Special Term has decided that under subdivision 7 of section 4 of the Tax Law,
The assessors contend that all of the real and personal property of the relator is not used exclusively for educational purposes within the purview of this statute. It is insisted that “ sleeping rooms and drill rooms, armories and stables, library buildings and buildings occupied by the lessees as a residence, recreation grounds and dining halls,” although a part of the academy foundation and used in the administration thereof, are not within the exemption contemplated by the statute. The academy is both a day and a boarding school; consequently dormitories are necessary for the boarding pupils. The pupils are required to wear military uniform and are under military discipline. It is appropriate, then, that there should be an armory and a drill room. No particulars are given touching the
It is also objected that the trustees receive pecuniary profit from the academy within the prohibition of the statute. The trustees lease the academy to Mr. Brusie and Mr. Emory at a yearly rental graduated by the number of boarding pupils, which cannot exceed $3,000 per annum and which must be large enough to pay insurance and interest on the indebtedness of the academy. The rental is $3,000 per annum in addition to insurance. The lessees covenant to use the premises as an academic school subject to the control of the trustees in the exercise of their duties under the charter. The tuition of day scholars from the town is limited to $50 a year, and certain free scholarships open to the public schools are provided for. In other words, the trustees, instead of conducting the school, farm it out to the principal who conducts it under the supervision and visitation of the trustees who have reserved all of their powers under the charter. Under this arrangement, the trustees in effect receive in excess of the cost of maintenance $3,000. The exception of the statute is aimed at any officer, member or employee who receives, or may lawfully receive, any pecuniary profit from the operation of a school, except reasonable compensation for services in effecting its educational purposes. The assessors’ return sets forth: “We are not informed that the trustees claim that such sum of $3,000 may be kept by them as reasonable compensation for any work they do in relation to the Academy or its work. On the contrary, we are informed and believe that no one of them charges anything for his services. * * * We have no doubt the whole income has been used in the erection of new buildings, such as brick stables, gymnasiums and library buildings, and in buying libraries, and in repairs and changes in the main building, the most expensive of which we understand to be the tearing out of lath and
The order should be affirmed, with costs.
All concurred.
Order affirmed, with ten dollars costs and disbursements.
See Laws of 1896, chap. 908, as amd. by Laws of 1897, chap. 871.— [Rep.