Summerton v. Mead

27 Pa. D. & C.2d 714, 1962 Pa. Dist. & Cnty. Dec. LEXIS 377
CourtPennsylvania Court of Common Pleas, Warren County
DecidedMay 2, 1962
Docketno. 36
StatusPublished

This text of 27 Pa. D. & C.2d 714 (Summerton v. Mead) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Warren County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Summerton v. Mead, 27 Pa. D. & C.2d 714, 1962 Pa. Dist. & Cnty. Dec. LEXIS 377 (Pa. Super. Ct. 1962).

Opinion

Flick, P. J.,

A petition has been filed by R. N. Summerton, Lynn Branch and R. A. Niver, auditors for Warren County, under the Uniform Declaratory Judgment Act of June 18,1923, P. L. 840, as amended and supplemented, 12 PS §831-53, asking the court to determine whether it is lawful for the Warren County Commissioners acting as Commissioners of the Rouse Estate to invest Rouse Estate funds in such securities as are legal investments for funds in the hands of fiduciaries.

In view of the Supreme Court’s decision in Carwithen’s Estate, 327 Pa. 490, there is some doubt as to whether the court should render a declaratory judg[716]*716ment. However, in that case the trustees sought advice in advance concerning the legality of investing trust funds in corporate stock, whereas in the instant case the questioned investment has already been made. Also, the averment of the auditor’s petition that there is a present or imminent controversy is not denied. Therefore, the court will exercise its discretion and render a declaratory judgment as requested.

Respondents named in the petition are Blain M. Mead, Lewis Crippen and Clarence Akeley, Commissioners of the Rouse Estate. The petition was filed March 16,1962, endorsed with notice to plead, and service was accepted. On March 19,1962, a stipulation between counsel for petitioners and counsel for respondents was filed providing that “all further notices, rules and argument are waived, and this case shall be at issue, with leave to file briefs on or before March 22,1962.

It was explained to the court that the petitioners were finishing their work of auditing accounts of county officers for the year 1961, and the accounts of the Commissioners of the Rouse Estate and its appointed treasurer, and that they were anxious to secure a declaratory judgment on the question raised, before the first Monday of April. The stipulation was approved and the court agreed to study the matter at once and to endeavor to hand down an opinion and decree within the requested period, or as soon thereafter as possible.

Briefs of counsel were filed as stipulated. Neither brief cited a single case, which clearly shows the unusual nature of the issue involved. Both briefs recite the seven acts of Assembly, beginning with that passed almost exactly 100 years ago creating the corporation entitled “Commissioners of the Rouse Estate”, which bear on the question raised, and also article IX, sec. 7, of the Constitution of Pennsylvania of 1874.

[717]*717The petition is not answered and the averments are taken as true. The alleged facts are meager but they indicate the present or imminent controversy which forms the jurisdictional basis for the petition under the Uniform Declaratory Judgment Act, supra. While performing their duties as county auditors, petitioners found: “That during the year 1961 the respondents purchased 60 shares of Southern California-Edison common stock for the sum of $4,313.38 from the Rouse Road Permanent Fund and 10 shares of the same for the sum of $724.63 from the Rouse Poor Permanent Fund.” The petition questions whether such investments are lawful in view of article IX, sec. 7 of the Constitution of 1874, which provides: “The General Assembly shall not authorize any county ... to become a stockholder in any company, association or corporation . . .”

From the nature of the declaratory judgment sought by the auditor’s petition, it is implied and will be assumed that the questioned investment in common stocks is lawful if the Fiduciaries Investment Act of May 26, 1949, P. L. 1828, as amended, 20 PS §821 et seq., governs the investment of assets in the hands of the Commissioners of the Rouse Estate, a body corporate created by the Act of April 5, 1862, P. L. 407. To determine whether such is the fact, preliminary and subsidiary questions must be answered. What is the purpose for which the legislature by the Act of 1862 declared the commissioners of Warren County, and their successors in office, to be “a body corporate, under the name, style and title of Commissioners of the Rouse Estate”? Are the purposes, duties and powers of this corporation so similar to or interwoven with those of Warren County that the constitutional restriction which forbids any law authorizing a county to become a stockholder in any company, association or [718]*718corporation, apply to the Commissioners of the Rouse Estate, as to investment of Rouse Estate funds?

To answer these questions requires an examination of facts which do not appear in the petition but do appear, for the most part, in the Warren County records, the records of the Commissioners of the Rouse Estate, and the Acts of Assembly referred to.

“Rouse”, of course, is Henry R. Rouse, who died April 17, 1861, a resident of this county, having suffered fatal injuries in the explosion of one of the early oil wells in what is now known as Rouseville, Venango County. He was only 37 years of age at the time of his death, but he had accumulated quite a fortune, a saw mill, timber and oil lands, and other properties, worth about $200,000. In a dying condition he dictated a truly remarkable will. It was probated May 1, 1861, as appears in Warren County Register’s Docket 3, pages 455-56. There are 20 specific bequests to various friends, relatives, business associates and employees, including “two gentleman who carried me out of the fire.”

The first paragraph of Henry R. Rouse’s will names his executors. The second paragraph reads: “I bequeath to my father, Samuel D. Rouse, $500.00 per year during his lifetime.” The twenty-second paragraph bequeaths Henry’s library to his father. As Henry never married, had no brothers or sisters, and his mother predeceased him, the father would have inherited the entire estate under the intestate laws if Henry had died without a will. This is important in view of the fact that the two paragraphs which dispose of the residue of the estate, in trust, were invalid and the residue was inherited by the father. It is not necessary here to mention the other specific bequests.

The paragraphs disposing of the residue are as follows:

[719]*719“8. I bequeath the residue of my estate, after making some other bequests, to the Commissioners of Warren County, the interest of it to be expended on the roads of said County, after I make some other bequests.
“15. I wish to change the object of the bequest contained in number eight so as to give the benefit of one-half of it to the poor of Warren County. It is given in trust to the County Commissioners for that purpose.”

After probate of the will, the county solicitor discovered that the use which Henry R. Rouse wished to make of the bulk of his estate, and the trust provided to carry out such intent, were void under section 11 of the Act of April 26, 1855, P. L. 328, which provides:

“Section 11. That no estate, real or personal, shall hereafter be bequeathed, devised, or conveyed to any body politic, or to any person in trust for religious or charitable uses, except the same be done by deed or Will, attested by two credible, and, at the time, disinterested witnesses, at least one calendar month before the decease of the testator or alienor; and all dispositions of property contrary hereto, shall be void and go to the residuary legatee or devisee next of kin, or heirs, according to law. . . .”

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Bluebook (online)
27 Pa. D. & C.2d 714, 1962 Pa. Dist. & Cnty. Dec. LEXIS 377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/summerton-v-mead-pactcomplwarren-1962.