Niles Post No. 2074 of Veterans of Foreign Wars v. Niles Memorial Hospital Ass'n

29 N.E.2d 631, 65 Ohio App. 238, 18 Ohio Op. 421, 1936 Ohio App. LEXIS 467
CourtOhio Court of Appeals
DecidedJanuary 6, 1936
StatusPublished
Cited by1 cases

This text of 29 N.E.2d 631 (Niles Post No. 2074 of Veterans of Foreign Wars v. Niles Memorial Hospital Ass'n) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Niles Post No. 2074 of Veterans of Foreign Wars v. Niles Memorial Hospital Ass'n, 29 N.E.2d 631, 65 Ohio App. 238, 18 Ohio Op. 421, 1936 Ohio App. LEXIS 467 (Ohio Ct. App. 1936).

Opinion

Carter, J.

This cause is in this court on appeal by *239 the Niles Memorial Hospital Association, the appellant, one of the defendants in the original case. Inasmuch as any finding at variance with that of the lower court would involve and affect all parties to the action, we therefore hold that the entire case is before this court for consideration and determination.

The action was instituted in the lower court by Niles Post No. 2074 of the Veterans of Foreign Wars of the United States and arises out of the following facts: During the year 1918 written subscriptions were solicited throughout the city of Niles and Weathers-field township for donations to the Niles War Relief Board. The subscription form used in raising the fund was as follows:

“I hereby subscribe and agree to pay to the Niles War Chest Fund an amount equal to three days work, and authorize my employer to deduct from my pay as follows: One day’s pay out of my last pay in June, one day’s pay out of my last pay in September, and one day’s pay out of my last pay in November, and pay same to R. L. MeCorkle, treasurer of the Niles War Relief Board, this being my contribution to war relief work for a period of one year ending May 1, 1919. This war chest fund to provide Niles and Weathersfield township quotas to all war relief funds for the year ending May 1,1919. The Niles War Relief Board will have charge of the distribution of the war chest fund. This fund is to be used only for strictly war relief purposes. The beneficiaries are the Red Cross war relief, Y. M. C. A. war relief, K. of C. war relief, Salvation Army war relief, Y. M. H. A. war relief and any other legitimate war relief work.”

The evidence discloses that at the close of the World War in the latter part of 1918, there remained unexpended in the hands of this board about $64,000. On February 15, 1924, William McKinley Post No. 106 of Niles, Ohio, filed its action in case No. 20532 in Trumbull county Common Pleas Court praying for a judicial *240 construction of the charitable trust in a manner consistent with the original purposes of the donors, joining the board of trustees as parties defendant.

The evidence further discloses that as a result of this action a compromise agreement, without trial upon the merits and law of the case, was entered into and the court entered its order on February 25, 1925, wherein it held that the original purpose of the fund had failed and that the balance of the fund should be expended for some purpose nearest to the purpose for which the fund was originally raised. Whereupon 50 per cent of the fund was ordered paid to-the legion post and 50 per cent to the Niles Memorial Hospital Association. The grant to the hospital association was conditioned upon the execution of a trust agreement between the association and the Niles Trust Company providing in substance that the fund should be invested in government securities and the income therefrom added to the principal until such time as a hospital of modern construction of at least 25-bed capacity should have been erected. Thereafter the trustee bank was to pay the income from the accumulated fund for general maintenance purposes semi-annually to the hospital association, thereby creating a public trust, the income only being available for maintenance purposes of a modern hospital of at least 25-bed capacity, the hospital to be for the use and benefit of the general public. It is this fund which was allocated to the Niles Memorial Hospital Association that is in question in this case, that portion allotted to the American Legion not being involved.

On October 31, 1931, the plaintiff filed its petition herein praying that the court set aside and vacate the hospital trust created and that the trust fund now held by the Union Savings & Trust Company of Warren, Ohio, present trustee of the fund, be turned over to the plaintiff for the uses and benefits of ex-service men of the World War of the city of Niles and Weathersfield *241 township. The following defendants filed pleadings in the trial court: Niles Memorial Hospital Association answered admitting the creation of the trust for its general public hospital, denying all other allegations of the petition and alleging that there is a possibility and probability of the erection of a hospital and that the purposes of the association have not wholly failed or been neglected. I. J. Fulton, superintendent of banks in charge of the Niles Trust Company, admitted that the trust company had received $34,926.17 in trust for the hospital association and that such sum had increased to $43,358.54 as of September 1, 1931, and prayed that the trust company’s rights be protected by the court. For the Niles Trust Company the superintendent filed his motion with accounting attached requesting that the bank be discharged as trustee and its account approved. The court approved the resignation and accounting. On December 1, 1933, the Union Savings & Trust Company was appointed successor trustee and a trust agreement entered into between the association and the Union Savings & Trust Company, trustee, consistent with the court’s order of 1925. Intervening petitions were filed by Adolph Frazier, John Craks and J. W. Westmoreland, on behalf of themselves and other residents of Niles city and Weathersfield township who served in the military and naval forces of the United States, the allegations of their intervening petitions being substantially the same as those of plaintiff, praying the court to carry out the intention of the original donors. An intervening petition was also filed by Wilson Manufacturing Company, Jacob Waddell and F. J. Thomas alleging that they were original donors; that the plaintiff is not an organization composed exclusively of those who participated in the World War; that this organization is not in a position to administer the fund for war relief purposes; and that the purpose for which the funds were .awarded to the Niles Memorial Hospital *242 Association has not failed nor is its object impossible of fulfillment. By way of cross-petition they allege that if the court should find that the hospital trust has failed and is impossible of fulfillment, then, and in ,that event, the fund should revert to the original donors, their prayer being on behalf of themselves as donors and all other donors.

By leave of court William McKinley Post No. 106 of American Legion was joined as party to the proceeding and filed its intervening petition denying the allegations of plaintiff’s petition, denying the allegations of the answer of the Niles Memorial Hospital Association, denying the allegations of the intervening petitions of Wilson Manufacturing Company and others, and the intervening petition of Adolph Frazier and others, and averring that William McKinley Post No. 106 was formed in 1919 for purpose of service to all veterans of the World War, that its aims and accomplishments are consistent with the intention of the original donors and as such the legion is best fitted and equipped to accept and administer the fund in the service and benefit of all the World War men and women residing in the city of Niles and Weathersfield township. In its reply the legion avers that the order of 1925 was illegal and void, being in violation of the cy pres

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Mary Holbrook Russell Memorial Scholarship Fund
189 Misc. 2d 198 (New York Surrogate's Court, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
29 N.E.2d 631, 65 Ohio App. 238, 18 Ohio Op. 421, 1936 Ohio App. LEXIS 467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/niles-post-no-2074-of-veterans-of-foreign-wars-v-niles-memorial-hospital-ohioctapp-1936.