The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1921-04-11
Mason County, ct. al. VS.. Haywood
Hospital Of Maysyille., 1877 KY, II.
DocIded Noyember 20, 1915l

""H"h tvu"t!. II. Hi' We uhySWOOu
Hospital OF Maysyllle., 1877 KY, II.
decided November 90, 1851
Appeal from Mason Circuit Court.
Opinion Of the Court by Judge
Nunn-Aiirming.
Upon the plea that II Is an institu-
ton Of purely public charity appellee
brought this action to restrain the
sheriff and assessor Of Mason county
from listing for taxation, or levying
upon, or selling, any Of its property
for taxes.
Appellants demurred to the petition.
The demurrer being oyerruled they
bring this appca, having declined to
plead further, Only two questions are
raised for decision. ~ Is the appellee
an Institution of purely public char
ity within the meaning of section 40
of the Kentucky Constitution? (2) If
an Institution Of purely public charity,
does the exemption from taxation ap-
ply to its property which is not di-
rectly connected with the hospital and
not used for hospital purposes, al
though the income therefrom Is used
solely in meeting the necessary ex-
penses Of the hospital?
The idea of this hospital originated
in 1907 with Mrs Mary V. Wilson, an
elderly widow, residing in Maysville.
she conceived the idea of founding the
hosuital and conveyed the property
now used as hospital to DR.. Thos.
Il. Pickett, j. Foster Barbour, Clar-
ence L. Sallee and a. NJ. J. Cochan, as
trustees, and gave them powers of
succession. The trust imposed was,
The establishment and maintenance
and operation on said premises of
hospital for the treatment of sick and
disabled persons" The trustees were
directed to adopt and put in force
such rules and regulations as would
best carry out the trust If need be,
they might incorporate. and if the
''f'Nr7'0N 'f71"' stock. then, "if any
'" at'.o FROM said stock they will
apply them in providing treatment in
said hospital for the worthy poor of
Maysyille." The conveyance further
stipulated that the trustees "are to
render their services without COM
pensation."
me trust was accepted, and, in 1908,
the trustees formed a corporation nm
DER the provisions OF sections S79 to
SS", inclusive, of the Kentucky Stat
ntes. The trustees were the incorpora-
tors as charitable corporation hay
ing no capital stock, under the cor
porate name of 'Hayswood Hospitar."
In 1911 the corporation accented
from Mrs. Fannie A. Hays, a convey
ance of a tract of land situated five
miles from Maysville. containing
about $50 acres, The trust expressed
III the deed was to provide at the hos
pitaI medical and surgical treatment.
ana Tor necessary maintenance while
UNDERGOING treatment, to poor persons
!" need OF same, and not able in whole
or part to provide same for Them
selves This conveyance also stip-
ulated that the trustees shall serve
Wl!hout compensation. In 1912, Nell
Valhey deyises $1,000 and his residu-
airy estate to the hospital in trust for
the purpose of establishing a free
Ward Tor the treatment of children
whose parents or friends are not able
10 pay Tor their treatment. the trustees
10 De the sole judges OF who NAV re-
celVe Tree treatment" Since then the
trustees have received upon substan-
tiaily the same terms, two other be-
quests aggregating S4,S99 The above
Is all the property owned by the hos
pltal 1t Is alleged in the petition that
the trustees have maintained and on
Grated the hospital pursuant to the
trust provisions of the deeds referred
10 and from which mo private pecun-
larry profit has ever been, or can ever
be, derived they have made valuable
and permanent improvements ON the
nospital property and equipped 1t
with medical and surgical appliances
and employed trained nurses and at
tendants.
The funds with which the hospital
mas been equipped and operated,
Have been derived in part from
private donations and I'm mart
from the money received from sick
ana disabled persons who have been
treated therein the receipts from
the patients at plaintiffs hospital have
never been sufficient to defray the ex-
pense thereof and keep up and main
tain the hospital. nor is it the pur-
pose of plaintiff ever 10 make il a pay
ing institution. 1t has kept the bal
ance Of the money SO given it, after
paying for needed improvements and
repairs, invested so as to yield an in
come to be applied to the making up
Of the deficiency in the necessary run
ming expenses; in other words, as an
endowment fund. This fund amounts
10 about S11,500. The purpose
of plaintiff is ,as soon as it can be
done, to make other improvements on
said hospital building"
We are Of the opinion that the pet
ton sufficiently shows that the hos
pital is an institution of purely public
charity, 1t is not operated for profit.
It is unnecessary to enter into an ex-
tended discussion of the questions
-7ised, for both have many times been
Gsad On by this court. The recent
es of City of Dayton VS.. Speers
Hospital, 165 Ky, Sc; Commonwealth
VS.. Board of Education Methodist
Episcopal Church. 166 KY, 61O, and
many other cases therein cited, con-
clusively settle the question. Since
the opinion of the lower court is in
harmony with the law as set forth in
these opinions, the Judgment is az
frmpd