Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-03-04
GAN BE TAXED.
Supreme Court Decision
On fraternity Houses.
Court Rules That U. Of N. Is
Not State Institution
lis Legal Status Exactly Like That
Of Other Maine Colleges.


concurred in by the full bench, defining
the relations of the University of
Maine to the State of Maine and con-
corning the taxation of it's fraternity
houses by the town OF Orono. In brief,
it is ruled that the University of Maine
is not a State institution, not a part Of
the public school system OF Maine, but
an independent cooperation having eX-
actiy the legal status of the other col
leges in the State. It is further held
that the fraternity houses are subject
to taxation by the town of Orono, Just
as the fraternity houses of Bowdoin
CT Colby are taxed in Brunswick and
Watcrville. The rescript follows:
Inhabitants of Orono vs. Sigma AL
pha Epsilon Society-This is an action
CT dept for municipal tax for the
year 1907 and comes to this court on an
agreed statement of facts. The defend
ami admits that the assessment of the
tax and all of the proceedings connect
cd Herewith are in regular form, but
denies liability on the ground that the
defendant, a Greek letter fraternity, is
corporation organized on November
e, 1893, under the general laws of this
State for the purpose of Greeting and
maintaining a chapter house on the
campus Of the University of Maine.
and TO hold and dispose of all such real
estate and personal property by pur-
chase. lease, sale or otherwise as may
be necessary for all such purposes and
all other acts and things incident
thereto and necessary, proper and con-
vCllient to the transaction of any such
business Of said corporation
In accordance with it's chartered
rights. the defendant corporation in
1904, under a parol license granted to
it by the trustees of the University,
erected upon land of said University in
Orono, frame building, called chap
ter house, with properly equipped din
ing room, kitchen, study and sleeping
rooms, reception rooms and the like,
the funds therefor being provided by
issuing it's corporate notes to the
amount of ten thousand dollars, guar
antced by the trustees of the Univer-
SHY under authority Of chapter 500 Of
the Private and Special Laws of 1905.
to which reference will be made here
after. On April !, 1907, when the tax in
suit was assessed this building
thirty students of the Univer-
sity, who We're members of an ilnincor-
pora+cd branch or chapter of the de-
PENDANT corporation known as Alpha
Chapter of Sigma Epsilon Fraternity,
and who had entire' charge and man.
aGcment of;the building, the furnishing
Of food and the hiring of servants.
The house was used as such chapter
houses usually arc, as a home where
the students lived while attending the
University. No officer of professor of
the University lived in the building or
had any control or management of it
other than the general supervision and
control exercised Over the entire stu
dent body The expense of mainte
nGnce including board, fuel, service, re-
pairs and certain inStallnent of in
d btedness was apportioned among the
az tive members of the chapter, no in
come or profit being divided among the
stockholders. The University exacted
no rental for the use of the land.
l. Held.
l. The general rule is that all real
property within the State is subject to
taxation. r. S. Oh. 9, Sec. 2. Among
the exemptions is 1.-THE real estate of
all scientific and literary institutions
occupied by them for their .own pur-
poses orby any officer thereof as resi-
dcncc." r. $. Oh. g. Sec. 6, Par II. Clear
~ the case at bar does not fall within
this exception to the general rule. This
is not a tax against the University of
Maine, which is conceded to be a lit
erary and scientific institution. The
University does not own the property
which is the subject of taxation here.
This property is owned by an indepen-
dont corporation and the owner is the
party taxed and sued. The corporate
purposes of the defendant are neither
literary nor scientific. They are rather
domestic in the nature of a private
boarding house. and such is the bust
nc S. that it carries on.
,. That the fact that the land on
which the chapter house stood was
owned by the University makes no le-
gal difference in the result. Not all
the real estate of literary and scientific
institutions is exempt from taxation.
1t is only such as is occupied by them
for their own purposes or by any off,
Ger thereof as a residence" The lot
on which this building was erected was
ttCul1lti IltltLeT ny lilt university lioI
by any officer thereof. but by an indie
pendent corporation for its own pur-
poses and therefore it lost the privilege
of exemption which might under other
conditions attach to it.
3. But the defendant goes further
and claims not merely an exemption,
but an immunity from taxation on the
ground that the University of Maine
is a branch Of the state government,
an fundamentally of the state itself
ard therefore the property is public
property, no more subject to taxation
by the town of Orono than Jail,
court house or an insane asylum, and
still further that the relations between
the University and the defendant are
such that the immunity reaches to It.
The doctrine of such immunity is
everywhere acknowledged when the
facts present an opposite case.
The necessary facts, however. are
lacking here. The University of
Maine while chartered by the state
and fostered by it especially in recent
years, is not a branch of the states
educational system, nor an agency nor
an instrumentality of the state, but d