The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1899-01-06

language used, by the wider field OF
public usefulness opening to the col
lege, but also by the controlling fact
that in view of the full exemption OF
the college property, i. e., the funds
devoted to public use, the college sur
rendered the existing exemption of the
private estates of it's president and pro-
fessors. The act of 1884 plainly eXempts
all the property of the college from
taxation; and the proviso qualities this
exemption only for the purpose of i'm
posing limited restraint on the mode
of investment 1t is not an absolute
limitation to the holding of real estate,
but it is provision which makes it the
interest of the college to itself limit it's
holdings. 1t is not presumed that the
college will, to any considerable extent,
invest it's funds in unproductive prop
cry, so there is no direct limit to it's
holding of such land; but the college
might we'll be tempted to put all it's
funds into productive real estate, and
the proviso directly restraints this ten
dency by limiting it's right to hold real
estate producing more than six thou
sand dollars year, unless it pays taxes
on the excess. If the college finds in
any year that its revenues from land
exceed six thousand dollars, it must
choose between it's unlimited exemption
from taxation and it's unlimited right
to hold real estate; If it chooses the for
mer it must sell so much of it's produce
tive land as will reduce its income with
in the limit; if it chooses the latter,
1t must pay taxes on the land instead
Of selling it. In this way the state
sought to exempt all funds of the col
lege from taxation and through the
potent operation of self-interest to keep
the investment of those funds in real
estate within reasonable bounds
Counsel for the plaintiff urged with
great force, in further support of this
view, the fact that here the enacting
clause is total exemption and a pro-
viso can withdraw from the enacting
clause nothing that is not fairly within
its terms. In speaking of this rule,
Story said: 1--WE are led to the general
rule of law which has always provided,
and became consecrated almost as
maxim in the Interpretation of statutes,
that when the enacting clause is gen.
eral in its language and objects, and
proviso is afterwards introduced that
proviso is construed strictly, and takes
no case out of the enacting clause
with does not fall fairly within its
terms. In short, proviso carves spe-
cial exceptions only out Of the enact
ing clause, and those who set up any
exception must establish it as being
within the words as well as within the
reason thereof" Omitted States VS..
Dickson, Is Pet. 141, 1859.
For reasons before given, we think
that students fees. whether appor-
toned to room rent or tuition, cannot
be treated as income of real estate and
that land occupied and reasonably
necessary for the plant of the college
is not producing real estate within the
meaning of the proyiso to the act of
1884.
The vacant lots added by the asses
sors are exempt from taxation. The
dwelling houses and factories added by
the assessors are also exempt, unless
some one or more of these must be adj
ded to the list returned by the plaintiff
in order to reduce its net income from