Texas Co. v. State ex rel. Coryell

1947 OK 53, 180 P.2d 631, 198 Okla. 565, 1947 Okla. LEXIS 509
CourtSupreme Court of Oklahoma
DecidedFebruary 18, 1947
DocketNo. 31827
StatusPublished
Cited by29 cases

This text of 1947 OK 53 (Texas Co. v. State ex rel. Coryell) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texas Co. v. State ex rel. Coryell, 1947 OK 53, 180 P.2d 631, 198 Okla. 565, 1947 Okla. LEXIS 509 (Okla. 1947).

Opinions

WELCH, J.

This is an appeal from judgment escheating lands and oil and gas rights in lands described in 15 separate tracts located in Creek county, acquired and held by the Texas Company, a Delaware corporation, licensed and doing business in the State of Oklahoma. The corporation is authorized by its charter to engage in mining, the production, storage, transportation, refining, manufacture, purchase and sale of mineral products, and oil and gas, and to acquire real and personal property for its use.

The issues before the trial court involved construction and application of section 2, art. 22, Constitution, and section 1636, O.S. 1931. That section of the statute was in effect at commencement of this action, but has since been repealed. The court made specific findings of fact concerning the property involved in each of the causes of action. But having reached a legal conclusion whereby all the properties involved were escheatable, the court so held without consideration of the separate [567]*567status of the several properties involved. We shall later refer to the fact situation as to each cause of action.

The constitutional provision is in part as follows:

“No corporation shall bd created or licensed in this State for the purpose of buying, acquiring, trading, or dealing in real estate other than real estate located in incorporated cities and towns and as additions thereto; nor shall any corporation doing business in this State buy, acquire, trade, or deal in real estate for any purpose except such as may be located in such towns and cities and as additions to such towns and cities, and further expect such as shall be necessary and proper for carrying on the business for which it was chartered or licensed; . . .”

The learned frial judge, as a conclusion of law, expressed the view that as applied to such corporations as defendant, it is the purpose of the constitutional provision to:

“Prohibit corporate ownership of land or real estate outside of incorporated cities and towns and additions thereto”

and his reasons were based upon the initial inhibition in the constitutional provision as against the creation or licensing of corporations within this state to buy, acquire, trade or deal in rural real estate, together with the second provision in reference to rural real estate which “prohibits corporations from doing those things which a corporation cannot be created or licensed to do,” and the view that the provision further prohibits such corporations from buying, acquiring, trading or dealing in real estate in such towns and cities except when such real estate is necessary and proper for carrying on the business for which such corporation was chartered or license. It was the trial court’s view that “It is a further exception to the corporate privilege of owning real estate, to wit, real estate situated in incorporated cities and towns and additions thereto.”

The conclusion of law is error. The constitutional provision deals with different types of corporations. The first is land companies. They shall have no corporate existence within this state to deal in other than real estate located in incorporated cities and towns and additions thereto. As to corporations in general, such as typified by the defendant corporation, it is not denied ownership of rural real estate, but it is limited under the further exception in its acquisition of such real estate “as shall be necessary and proper for carrying on the business for which it was chartered or licensed.”

The constitutional provision is not ambiguous, and while resort has been had by the parties to proceedings of the Constitutional Convention to sustain their respective views of meaning to be derived from the words employed, there is no absolute necessity for consideration of those proceedings. The Constitution does not derive its force from the convention, but from the people who ratified and adopted it. The intention to be ascertained is that of the people. The rule' of construction is common understanding, rather than obtuse meaning as may be attributed by some who were members of the convention and based upon motives personally persuasive. Cooley, Const. Limitations.

“Courts, in construing unambiguous constitutional provisions, are not at liberty to search for meaning beyond the instrument . . . Meaning of Constitution, apparent on face, must be accepted.” Shaw v. Crumbine, 137 Okla. 95. 278 P. 311; State v. Millar, 21 Okla. 448, 96 P. 747.

The trial court erred in construing the further exception as a limitation upon the initial prohibition. The Texas Company, under the further exception, was limited in its ownership of rural real estate to such as was necessary and proper for carrying on its corporate business. Under the adverse view, oil companies could not own real estate outside of cities and towns and additions thereto, upon which to locate refineries, gasoline plants, or tank farms, [568]*568nor would other corporations own rural real estate upon which to locate cotton compresses, warehouses, grain elevators, mills and plants, nor golf clubs, hospitals, sanitoriums, and the like. It, would mean that industries could not be but urban. Such was not the intention of the constitutional provision as indicated by the use of “further” in connection with the exception signifying additional or as going or lying beyond, thus enlarging the first exception but restricting and narrowing its meaning. The constitutional provision did not negative corporate ownership of rural lands, but amplified it. Truax v. Capitol Life Ins. Co., 166 Okla. 153, 26 P. 2d 755.

In Oklahoma Natural Gas Co. v. State ex rel. Vassar, 187 Okla. 164, 101 P. 2d 793, this court analyzed the whole of section 2, art. 22, Constitution, setting out the prohibition and exceptions, and clearly recognized that each of the latter was separate and independent of the former and not mere restrictions or limitations upon the initial prohibition.

This construction accords with legislative interpretation and its soundness is supported by previous decisions of this court.

The legislative interpretation is reflected by enactments expressly recognizing corporate ownership of rural real estate. Deserving of especial reference is the Act of the First Legislature (S.L. 1907-1908, pp. 196 and 387) and that of the Seventh Legislature (ch. 172, S.L. 1919, same as section 1636, O.S. 1931) which, in contemplation of the constitutional provision here involved, undertook to provide for the escheat of land held in excess of constitutional limitations, and affords the statutory basis for the instant action. And also confirmatory of the legislative construction is the Act of the Sixteenth Legislature, S. L. 1937, p. 314.

The great weight to be given by the court to legislative interpretation in construing constitutional provisions is reflected in the following cases: Coyle v. Smith, 28 Okla. 121, 113 P. 944 (aff. 221 U. S. 559, 55 L. Ed. 853); Missouri, O. & G. Ry. Co. v. State, 29 Okla. 640, 119 P. 117; Myers v. United States, 272 U. S. 52, 174, 71 L. Ed. 160. This court recognized legality of corporate ownership of real estate in Oklahoma Natural Gas Co. v. State ex rel. Vassar, supra.

We deem it settled, then, as a general proposition that a corporation may lawfully acquire and hold real estate for its own proper business use.

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Bluebook (online)
1947 OK 53, 180 P.2d 631, 198 Okla. 565, 1947 Okla. LEXIS 509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-co-v-state-ex-rel-coryell-okla-1947.