Powers v. First Natl. Bank of Corsicana

161 S.W.2d 273, 138 Tex. 604, 1942 Tex. LEXIS 380
CourtTexas Supreme Court
DecidedMarch 18, 1942
DocketNo. 7799.
StatusPublished
Cited by83 cases

This text of 161 S.W.2d 273 (Powers v. First Natl. Bank of Corsicana) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powers v. First Natl. Bank of Corsicana, 161 S.W.2d 273, 138 Tex. 604, 1942 Tex. LEXIS 380 (Tex. 1942).

Opinion

Mr. Judge Brewster

delivered the opinion of the Commission of Appeals, Section A.

This is a suit by Millie Powers and thirty-six other residents of Canada, Michigan, Illinois, Ohio, Nebraska and Missouri, describing themselves as cousins and heirs at law of Bessie I. Hofstetter, deceased, and suing “on behalf of all other heirs of the said Bessie I. Hofstetter, deceased, similarly situated, and for the use and benefit of such class, * * a large number of whom reside outside of the United States,” in which the plaintiffs seek to “annul and suspend” the provisions of the will of said Bessie I. Hofstetter, deceased, which has been admitted to probate by the County Court of Navarro County, Texas. The First National Bank of Corsicana, executor of the will, was named as defendant. Third Avenue Presbyterian Church of the United States of America at Corsicana, Texas, and Reynold’s Presbyterian Orphanage and School, a corporation, devisees, intervened in behalf of the will, and are named as defendants in plaintiffs’ second amended original petition. *607 Plaintiffs’ attack is directed primarily at paragraph 4, 5 and 6, of said will, which are as follows:

“fourth :
“After the payment of debts and expenses enumerated in items two and three next above, and the expense of probating this will, I hereby will and bequeath and devise unto The First National Bank of Corsicana, Texas, a banking corporation organized under the Federal Banking Act of the United States ■ of America, in trust for the purposes hereinafter stipulated, all of the property of which I may die seized and possessed including real, personal and mixed property, and property of every kind and description, whether in my possession or held in trust for me; and it is my will and my desire that the Trustee aforesaid, shall have the entire management and control of all of said property; and I hereby grant unto said Trustee full power and authority to sell and convey the same, to invest, and reinvest the proceeds thereof from time to time, and to pay all reasonable charges and expenses in connection with the handling, managing, preserving, defending, recovering, caring for, controlling and selling said property, including a fee of - ----------------------upon the gross income derived from said properties to be retained out of said income by the Trustee in full compensation for its service hereunder.
“No bond or other security shall be required of the Trustee herein, in addition to the obligations and requirements imposed upon National Banks under the Federal Banking Laws and amendments thereto authorizing acceptance of trusts by said Banks.
“fifth :
“The Trustee, aforesaid, and its successors shall hold said property hereby devised and bequeathed to it in trust as a permanent charity fund and shall invest and reinvest same in revenue bearing real estate or interest bearing securities or in State, County, City or Road District bonds yielding the best rate of interest consistent with the safety of the fund or said fund may be loaned to any National Banking Institution at a reasonable rate of interest in the discretion of the Trustee.
“sixth :
“The net income of the public charity fund herein and hereby vested in the Trustee herein shall be expended by the *608 Trustee for worthy objects of charity, including the support of the Christian religion as hereinafter indicated. The charity so dispensed in the relief of poverty shall be without regard to race, color, sex or religious belief, and shall be distributed from time to time in the judgment and discretion of the Trustee; the objects of such charity to be selected by the Trustee. The said Trustee is further authorized and directed to pay out of the income of said trust a reasonable amount annually for the support of the Presbyterian Church of the United States of America at Corsicana, Texas, commonly known as the Third Avenue Presbyterian Church, and also to pay annually a reasonable amount to the Board of Trustees of Reynold’s orphanage at Dallas, Dallas County, Texas, said orphanage being conducted under the auspices of the Presbyterian Church of the United States of America. And if in the judgment of the Trustee the income from said Trust shall warrant, said Trustee may make contributions from such income to the above named church and orphanage for permanent improvements.
“The Trustee shall have the power and authority and is hereby directed, out of the income only, if in the judgment of the Trustee the income of the Trust is sufficient after the contributions above provided for, to make loans to ambitious and worthy boys and girls, who are financially unable to secure an eduction and would otherwise be deprived thereof. Such loans shall be in amounts and upon terms and conditions, and to such boys and girls that may be determined worthy thereof in the discretion of the Trustee, but without regard to residence of the recipients.”

The plaintiffs lost in both the county probate court and the district court and upon appeal the judgment of the latter court was affirmed by the Court of Civil Appeals, at Waco. See 137 S. W. (2d) 839.

As we understand plaintiffs’ pleadings and their several briefs, the grounds for their contention that the trust attempted to be set up by the aforsaid provisions is void may be grouped as follows: (1) it creates a perpetuity; (2) it is not made to public charity only, because it intermingles therewith provisions for a private trust; (3) the trust is personal in the trustee, in that the will vests in it a discretion as to objects, persons or classes to whom gifts shall be made; (4) the powers of the trustee, and the beneficiaries of the trust are so uncertain and the discretion of the trustee so unlimited that the trust *609 could not be administered by a court of equity nor could the attorney general prosecute a suit to enforce it; and (5) even if it should be conceded otherwise to create a public charity, the amounts, purpose and time for distribution of income to the church and orphanage are so uncertain that the two beneficiaries could not sue to enforce it.

By the quoted provisions of her will Mrs. Hofstetter clearly takes her estate out of the channels of trade and commerce for a period longer than a life or lives in being and twenty-one years plus the nine months of normal gestation. Therefore, the will creates a perpetuity, as contended by plaintiffs, and is void because it violates section 26, article 1, of the Constitution of Texas, unless it sets up a trust exclusively for public charities, in which event the constitutional restraint has no application. Paschal v. Acklin, 27 Texas, 173. So we shall first consider whether any of said provisions are for a private trust.

That a provision to relieve poverty is a public charity is not open to debate. That the hungry must be fed and the naked clothed has long been accepted by the civilized social conscience the world over. For some time and in many countries it has been recognized as an obligation attaching to the government itself to be discharged by public taxation. It is a duty that enlightened countries make every reasonable effort to perform.

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Bluebook (online)
161 S.W.2d 273, 138 Tex. 604, 1942 Tex. LEXIS 380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powers-v-first-natl-bank-of-corsicana-tex-1942.