Slovanian Literary & Social Ass'n v. City of Portland

224 P. 1098, 111 Or. 335, 1924 Ore. LEXIS 146
CourtOregon Supreme Court
DecidedApril 15, 1924
StatusPublished
Cited by8 cases

This text of 224 P. 1098 (Slovanian Literary & Social Ass'n v. City of Portland) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Slovanian Literary & Social Ass'n v. City of Portland, 224 P. 1098, 111 Or. 335, 1924 Ore. LEXIS 146 (Or. 1924).

Opinion

COSHOW, J.

The complaint -is probably demurrable. The defendants, however, answered and the cause was tried in the Circuit Court upon a demurrer to the answer. The defendants having submitted themselves to the jurisdiction of equity and [347]*347the suit having been determined upon the issues joined voluntarily by the parties, we deem it more satisfactory to determine the appeal upon the same issues. Upon a demurrer the complaint would have been construed strictly. After the decree, it will be construed as favorably to the plaintiff as its language will permit: 1 Pom. Eq. Juris., §§ 129, 130 (4 ed.).

One of the objects of the plaintiff corporation is described as follows:

“To provide amusement, entertainment and instructions for its members, including the providing of paraphernalia and apparatus therefor; to provide club conveniences, accommodation, and privileges for its members.”

The objects thus expressed in the articles of incorporation of the plaintiff are not unlawful. They may not be only harmless, but also beneficial. At the same time, because of the tendency to become harmful, the police power of the state has always included regulations and supervision of amusements and places of amusements. It does not follow, therefore, because the objects of the plaintiff corporation are lawful within themselves, that the conduct of the plaintiff in providing amusements and maintaining places for its members to enjoy amusements is beyond the police power of the state.

The character of a social club depends not upon its objects, as expressed in its articles of incorporation, so much as it depends upon the character, conduct and disposition of its members. An incorporated club in itself has no character, conduct or disposition. Whether a club is a proper association of persons united together for the purpose of healthful and [348]*348lawful purposes depends therefore more largely upon its membership than upon anything else.

“It may fairly be presumed that the members of all bona fide social clubs are what the members of the appellee club are shown to be, and what many of them are personally known to the members of this court to be, viz., gentlemen of high moral standing, who would not intentionally violate any penal law of the state. But in this, as in most instances of malum prohibitum, the question is, was the forbidden act intentionally done? and not with what intent was it done.” State v. Country Club (Tex. Civ.), 173 S. W. 570, 576. See also Commonwealth v. Pomphret, 137 Mass. 564, 567 (50 Am. Rep. 340).

A material inquiry in the suit before us is the personnel of the officers and members of the plaintiff corporation, and whether it is a club in good faith is a question for future inquiry.

“One inquiry always is whether the organization is bona fide a club with limited membership, into which admission cannot be obtained by any person at his pleasure, and in which the property is actually owned in common, with the mutual rights and obligations which belong to such common ownership, under the constitution and rules of the club, or whether either the form of a club has been adopted for other purposes, with the intention and understanding that the mutual rights and obligations of the members shall not be such as the organization purports to create, or a mere name has been assumed without any real organization behind it.” Commonwealth v. Pomphret, 137 Mass. 564, 567 (50 Am. Rep. 340).

One of the maxims of equity is: “Equity looks to the intent rather than to the form.”

The plaintiff having elected to submit, its complaint to a court of equity, it will be governed by the rules of equity.

[349]*349“The principle involved in this maxim, which is one of great practical importance, pervades and affects to a greater or less degree the entire system of equity jurisprudence, and is inseparably connected with that which forms the subject of the preceding section. In fact, it is only by looking at the intent rather than at the form, that equity is able to treat that as done which in good conscience ought to be done.” 1 Pomeroy’s Equity Jurisprudence (4 ed.), § 378.

The personal element is always an important one to be considered in licensing or regulating certain callings, occupations, amusements and sports under the police power of the state: Gundling v. Chicago, 177 U. S. 183 (44 L. Ed. 725, 20 Sup. Ct. Rep. 633, see, also, Rose’s U. S. Notes); Hall v. Geiger-Jones Co., 242 U. S. 539 (Ann. Cas. 1917C, 643, L. R. A. 1917F, 514, 61 L. Ed. 480, 37 Sup. Ct. Rep. 217); Riley v. Chambers, 181 Cal. 589 (185 Pac. 855, 8 A. L. R. 418); Town of Sumner v. Ward (Wash.), 217 Pac. 502; State ex rel. Minces v. Schoenig, 72 Minn. 528 (75 N. W. 711); State v. Cohen, 73 N. H. 543 (63 Atl. 928).

The ordinance does not impair the obligation of any contract. The state could not, if it would, bargain away its police power. The police power is the very essence of the sovereignty of the state. The famous case of Trustees of Dartmouth College v. Woodward, 4 Wheat. (U. S.) 518 (4 L. Ed. 629, see, also, Rose’s U. S. Notes), does not enunciate any such doctrine as contended for by plaintiff in this suit. In that case the State of New Hampshire undertook to take property from the trustees of Dartmouth College, incorporated while that state was a colony subject to the king of Great Britain and Ireland, and vest that property in others. This is [350]*350clearly shown by the masterful argument of Webster in page 572:

• “That all property, of which the use may be beneficial to the public, belongs, therefore, to the public, is quite a new doctrine. It has no precedent, and is •supported by no known principle. Dr. Wheelock might have answered his purposes, in this case, by executing a private deed of trust. He might have conveyed his property to trustees, for precisely such uses as are described in this charter. Indeed, it appears, that he had contemplated the establishment of his school in that manner, and had made his will, and devised the property to the same persons who were afterwards appointed trustees in the charter. * * In such a case, no lawyer would or could say, that the legislature might divest the trustees, constituted by deed or will, seize upon the property, and give it to other persons, for other purposes. And 'does the granting of a charter, which is only done to perpetuate the trust in a more convenient manner, make any difference? Does or can this change the nature of the charity, and turn it into a public, political corporation?”

Mr. Chief Justice Marshall, on page 636, said:

“From the fact, then, that a charter of incorporation has been granted, nothing can be inferred, which chang’es the character of the institution, or transfers to the government any new power over it. The character of civil institutions does not grow out of their incorporation, but out of the manner in which they are formed, and the objects for which they are" created. The right to change them is not founded on their being incorporated, but on their being the instruments of government, created for its purposes.

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Bluebook (online)
224 P. 1098, 111 Or. 335, 1924 Ore. LEXIS 146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slovanian-literary-social-assn-v-city-of-portland-or-1924.