6 N.E.2d 166 | Ill. | 1936
This is an appeal from a judgment of the circuit court of Cook county in favor of appellee, the Young Men's Christian Association of Chicago, a corporation, in a suit for $6363.63 personal property tax for the year 1931. This tax was levied on the personal property of appellee located in the hotel owned and operated by it at 826 South Wabash avenue, Chicago. The corporation was chartered by a special act of the General Assembly approved February 22, 1861. This act as amended by an act approved February 21, 1867, provided in part: "This association may purchase, hold, enjoy and convey those certain lots and premises, situated in the city of Chicago in this State, known and described as follows, to-wit: [Here follows a description of real estate,] which shall be forever exempt from taxation, either by State, county, municipal or any other authority or organization, except as hereinafter provided, and this association shall also have power to purchase, hold, *120 enjoy, and convey other real estate for the purpose of establishing and maintaining free libraries and reading rooms and for benevolent and religious purposes, and the same while it shall be held or owned by or for said association, for its own use, together with all personal property, held or owned by or for said association, shall be in like manner exempt from taxation, except as hereinafter provided." Section 2 of the amended charter provided that the association might have a seal and might acquire personal property by gift, lease, sale or otherwise. It also provided that appellee might make such rules, regulations and by-laws and change the same to facilitate the management and control of its affairs. Section 8 provided: "In case the income of said association exceeds the expenses and disbursements necessary to carry on the objects of said association, the exemptions from taxation shall not apply to any such excess," etc. When both the original and amendatory acts were passed the 1848 constitution was in effect. By section 3 of article 9 it provided: "The property of the State and counties, both real and personal, and such other property as the General Assembly may deem necessary for school, religious and charitable purposes, may be exempted from taxation."
Appellee erected its hotel about twenty years ago. The personal property used by it in conducting the hotel, the cafeteria, news stand, laundry, haberdashery, etc., in conjunction therewith, is that sought to be taxed. No attempt to tax such property had been made prior to the levy for 1931. At the hotel appellee had eight paid secretaries and conducted church services and Bible classes on Sundays and vesper services every evening. Wednesday evenings it supervised discussion groups, and throughout the week the secretaries were available to guests at the hotel for counsel and advice. Reading rooms, a library and a room where billiards and other games were played were also furnished. A glee club and classes in dramatics were made available *121 to the guests. These various services, classes and facilities were free to those who cared to make use of them. Guests were not required to be members of the Y.M.C.A. The rates for rooms were seventy-five cents and a dollar per day, but persons unable to pay those rates obtained rooms for fifty cents. Appellee made loans to needy patrons without interest, and most of these were re-paid. Some clothing was given away by the association, but it had no regular department to dispense such assistance. Usually persons seeking relief were sent to relief agencies. The salaries of the secretaries were paid out of the proceeds from the hotel. In years when the receipts exceeded the expenses a sinking fund was set aside, and this was drawn upon during 1928, 1929 and 1930 to meet deficits. There were no salaries paid to officers of appellee, and the intention was to charge only enough to pay the hotel expenses, the salaries of the secretaries and the cost of church services, entertainments, etc. Appellee also had a deficit in its general operations, which was made up by contributions during each of the four years ending with 1931. The hotel was built following surveys made by appellee in 1911 and 1913 which disclosed that conditions in cheaper lodging houses and hotels in down-town Chicago were generally unwholesome.
Appellant contends that the operation of the hotel is ultravires the corporation, that the association was chartered for benevolent and religious purposes, and that the operation of the hotel is not a charitable undertaking. It is true that if the operation of the hotel is ultra vires the corporation its personal property cannot be exempt. (Illinois Central RailroadCo. v. People,
Upon the state of facts shown by the record it is clear that appellee is a charitable organization engaged in charitable work. Its primary object is charity — not the making of a profit. The rates charged for its rooms are not *124
based, alone, on the cost of the service rendered, but the object of appellee is to furnish wholesome living conditions to young men at a price they can afford to pay and thereby correct the social evils that surround men who would otherwise be compelled to live in cheap rooming houses, amid sordid environments. Appellee had the power to furnish living quarters for young men as it does, and it follows as a matter of course that it could furnish the incidental services necessary to the comfort of the lodgers. The restaurant, cafeteria, laundry and haberdashery were purely incidental to the furnishing of the rooms in which the men should live and were likewise exempt from taxation. The word "benevolent," found in the first section of the charter, means "charitable." People v. Walters Chapter D.A.R.
The other point made by appellant is that the legislature did not exempt from taxation property not immediately used by appellee for its own objects. While this point is perhaps obviated by our holding that the property sought to be taxed is being used for a charitable purpose, we will nevertheless discuss it.
Since appellee's amended charter was granted in 1867 its provisions must be construed in connection with the provisions of the constitution of 1848 rather than those of the 1870 constitution. (Northwestern University v. People,
According to appellee's amended charter the real estate specifically described is forever exempt from taxation. The *126 association is also given the right to acquire "other real estate for the purpose of establishing and maintaining free libraries and reading rooms and for benevolent and religious purposes, and the same while it shall be held or owned by or for said association for its own use, together with all personal property, held or owned by said association, shall be in like manner exempt from taxation, except as hereinafter provided." "In like manner" refers back to the exemption of the specifically described property and means "forever exempt from taxation." The phrase "for its own use" cannot be given the construction urged by appellant, that it means property actually used by appellee for its corporate objects. If that meaning were adopted it would render meaningless section 8 of the charter, which limits the exemption to the property and income actually necessary to meet the expenses and disbursements of appellee. The language of section 8, which must be given its ordinary meaning, explains the nature of the exemption granted in section 1 of the amended charter, and indicates the legislature's intention to permit appellee to hold property exempt from taxation the income of which shall be used for the objects of the corporation.
The construction which we place upon appellee's charter is in harmony with that placed on similar charters granted under the constitution of 1848 and with that placed upon it by the taxing authorities of Cook county, who had not sought to tax appellee's property since the charter was granted until the year 1931.
The judgment of the circuit court of Cook county is therefore affirmed.
Judgment affirmed. *127