The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1917-08-31
N. E. CHURCH, SOUTH
WINNER EPW0R1n
UNIVERSITY LAWSUIT
CONTINUED From Page ~


church organizations for university pur-
poses, forty acres OF it to be reserved
for campus and school buildings and
the remaining 200 acres to be subdi'
vlded and sold within a year, half Of
the proceeds from the sale to be used
in erecting and furnishing the main
university building and to pay solicit
tors for the endowment fund, and the
other half to be paid to the owners OF
the land.
Judge Clark decided that Mr.. ClaS-
sen was influenced in his desire to see
the institution established here BY con
SidcratiouS which did not appeal to his
associates. Later MeSsrs. Putnam and
Smith offered to donate additional land
and Miss Mckinley also offered to as
sist in the erection Of the university,
Corporation Organized.
The University Development ON
pany was organized by the. various
property owners, except Mr.. Putnam
and Mr.. Smith, and University add
ton was plated, a certain tract being
designated as "Epworth university
grounds The deed was executed on
May 3, 1902. This land embraced the
24O acres in the original proposition,
ten acres donated by Putnam Ind Smith
and eighty acres donated by Miss Nc
Klnley. The stockholders OF the com-
pany transferred their real estate to
the corporation at an agreed price.
The stipulation made on June 10, 1902
and the formal contract did not contain
the stipulation made in the proposition
OF May D, 1902, that If the university
was discontinued or failed to keep open
for the reception OF students for the
period of three years that the property
should revert to the donors. to be used
in trust for other educational purposes,
Judge Clark ruled that il did not ap-
pear that this stipulation was left on,
either BY fraud, accident or mistake,
therefore the estate was not subject to
such limitation.
The transactions detailed created a
trust, Judge Clark ruled. in both the
land set aside for the university and
the 100000 which was agreed TO be
$ raised by the development company
p for the university, the property thereby
I becoming devoted to a public use by
e the two churches.
Z The original deed became lost aud
new deed was executed III 1908 and
new contract in 1910. Judge Clark de
clared that il was an important ques
ton it the execution Of The deed anC
contract operated to change the I'm
conditional fee simple title which here
toiorc rested in the trustees of the uni
ycrSity.
The acuteness Of the financial con
dition OF the university wa such tina
money was needed. a written agrcemcn
was made that If the church was unabl,
to pay off the mortgage that the dcvcl
opment company should be entitled t
all surplus and residue resulting iron
the sale OF the land after paying Of
the mortgage and expenses incumben
on the sale. Judge Clark ruled tina
both the university and the develop
ment company were responsible III
UltdsHIt lbI llt llldllNldl ADlluItlbH ~
the university.
Judge Clark declared that il was "a
the suggestion of the president OF tn,
development company, large stock
holder therein, and also a member o
the board of trustees OF the university
that the secretary OF the Joint commits
sion withheld the first deed from record
and who himself mailed the second dee
to the chancellor of the university with
out first submitting it to the board o
trustees for their approval.
Not Entitled to Surplus.
In the light OF these facts Judge Clar'
determined that the development com
pany was not entitled to deere
awarding il the surplus which may arts
from the sale Of the property to Satisi
the mortgage.
The development company has alread
paid TO its stockholders $4,000 tror
the sale OF lots; dividends OF SSS,WC
interest oi $4,000; the capital stock ha
been reduced to SOL 600, on the da
OF the trial there was $500 IN cash o
hand and the value OF unsold lots wa
100000, Judge Clerk stated, II the uni
vcrSity, IN its Straitened circumstance
had the legal right to surrender to IN
development company all claim to tn
surplus arising from the sale of III
property IN consideration OF the cot