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In re Fayerweather

31 Abb. N. Cas. 287 Court N. Y. Surrogate's Court; English

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p. 287
MATTER OF FAYERWEATHER.
N. Y. Surrogate's Court;
May, 1894.

Headnote

1. Taxes; exemption of religious corporation from transfer tax?\ A corporation incorporated by an act of the legislature of another State is not entitled to exemption from taxation upon a legacy under the will of a testator residing in this State, under the provisions of L. 1892, c. 399, § 2, in favor of religious corporations. That exemption applies only to corporations incorporated in this State,
^Following Matter of Prime, 136 N. Y. 347 ; Vanderpoel v. Gorman, 140 N. Y. 563 , 575.]
2. The samel\ It seems that a corporation established as an “ institution of learning for the scientific, classical and theological education of colored youth of the male sex,” is not a religious corporation within the exemption.
Appeal by Lincoln University from order assessing the transfer tax upon its legacy.
Howard A. Taylor, for the legatee.
Emmet R. Olcott and Edgar J. Levey, for the comptroller.

This is an appeal from an order heretofore entered herein, assessing the transfer tax upon a legacy of $100,000, bequeathed to Lincoln University. The appellant claims to be entitled to

p. 288
exemption from taxation under the Transfer Tax Act as a religious corporation. The Lincoln University was incorporated by an act of the Legislature of Pennsylvania. From its charter it appears that it was established as an “ institution of learning for the scientific, classical and theological education of colored youth of the male sex,” and was empowered among other things “to provide libraries, apparatus and all other needful means of imparting a full and thorough course of instruction in any or all of the departments of science, literature, the liberal arts, classics and theology.” While the theological department of the university is under the supervision of the Assembly of the Presbyterian Church, the university admits “ colored pupils, of the male sex of all religious denominations.”

The controversy between counsel was very spirited as to whether the appellant answered the definition “ religious.” While I have grave doubt that it is included in that term, I prefer to base mj' decision upon another ground. A statute of a State granting privileges to corporations must, in the absence of plain indications to the contrary, be held to apply only to corporations created by the State over which it has the power of visitation and control (Matter of Prime, 136 N. Y. 347 ; Vanderpoel v. Gorman, 140 N. Y. 563 , 575). It is the policy of society to encourage benevolence and charity. But it is not the proper function of the State to go outside of its own limits and devotfe its resources to support the cause of religion, education or missions for the benefit of mankind at large (Matter of Prime, supra). Assuming that Lincoln University is a “religious corporation,” I am of opinion that as the act manifests no intention on the part of the Legislature to include foreign corporations within the exemption, it must be restricted to religious corporations organized under the laws of the State of New York. The order-appealed from is affirmed.

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