President & Fellows of Harvard College v. Society for Promoting Theological Education
President & Fellows of Harvard College v. Society for Promoting Theological Education
Opinion of the Court
The present ease is one of a deeply interesting character, whether considered with reference to the general principles involved in it, or its own intrinsic importance.
The ease has been argued ex parte, no counsel appearing in opposition to granting the prayer of the complainants. This, in a case of a public charity, would ordinarily impose upon the court the duty of greater vigilance, to see that no change was made, either in the application of the charity or the management of the same, that would be unauthorized, having regard to the declared intentions of the donors.
We are happy to say in reference to this, that we have been much aided by the very elaborate and impartial presentation, by the counsel for the complainants, of all the important adjudicated cases adapted to give us aid on the questions raised, and by their frankly and candidly opening before us the various objections which, in the view of others, existed, or might be urged against granting the prayer of the complainants and making the proposed change.
In the consideration by the court of the case before us, the first inquiry that arises is as to the form of the bill, and whether it is proper and adapted to the case stated and the relief sought. Here the question is simply whether the bill, being one in relation tó a public charity, should not have been instituted by the attorney general, at the relation of the complainants or others.
It is true that such is the usual form of bills in relation to public charities. Such is the form of most of the bills in the cases cited by the learned counsel as bearing upon the general questions arising upon the merits of this bill. But although such is the more usual form, we do not perceive any objection to that adopted in the present case, looking at the case stated and the objects of this bill.
The prayer of this bill is not founded upon any allegations of
The next inquiry opens a much wider field—the power of this court, as a court of chancery, to regulate and control the administration of public charities, and to what extent and under what circumstances that power can be properly exercised. The exercise of any chancery power by this court, beyond that of relief in cases of mortgages and penal bonds, is of comparatively recent origin, and has ever been exercised with a cautious hand, and strictly with reference to the class of cases named in the statutes. The first was the statute of 1817, c. 87, which, with the other statutes enacted prior to 1836, was superseded by the Rev. Sts. c. 81, § 8. Among the subjects of chancery jurisdiction therein enumerated, is that of “ enforcing and regulating the execution of trusts.” Upon this branch of equity we have the general jurisdiction of the court of chancery in England. Hadley v. Hopkins Academy, 14 Pick. 253. Sanderson v. White, 18 Pick. 328. Parker v. May, 5 Cush. 341.
To some extent, the exercise of this power is very familiar to as. In reference to cases of public charities, no doubt exists as to the authority of this court to compel their proper execution, to reform all abuses of trust, and to supply trustees where there are none in existence to carry into effect the objects of the gift. But the prayer of this bill invokes the exercise of powers as a court of chancery in another lorm, and connected with a subject
That any such exercise of the power of a court of chancery over a public charity, of the character and under the circumstances of this case, and to the extent asked in this bill, has ever actually been sanctioned by a decree of any court of chancery in any of the states .of this Union, is not, we believe, suggested; certainly we have seen no such precedent in the reported cases. It is the English eases to which we are referred, and which are supposed by the plaintiffs to furnish authority for granting the prayer of this bill.
Upon this subject the whole chapter on public charities in Story’s Commentaries on Equity Jurisprudence is highly instructive, and presents, in the notes, most of the leading cases on the subject. 2 Story on Eq. c. 32. Judge Story, after stating various general propositions, in terms apparently quite liberal, as to the exercise of the authority of a court of chancery over public charities on occasions justifying such interference, adds : “ The disposition of modern judges has been to curb this excessive latitude of construction assumed by the court of chancery in early times.” “ The doctrine of cy pres, as applied to charities, was formerly pushed to a most extravagant length.” “The court will not now decree the execution of the trust of a charity in a manner different from that intended, except so far as it is seen that the intention cannot be literally executed.” 2 Story on Eq. \\ 1174, 1176.
Following the order pursued in the argument, I will briefly refer to the leading cases cited by the learned counsel as furnishing precedents for maintaining the bill. The case of Attorney General v. Boultbee, 2 Ves. Jr. 380, affirms the principle that, although the particular intention fails, the general intention shall be executed cy pres. The case of Attorney General v. Whitchurch, 3 Ves. 141, is to the same effect, holding that, whenever a charity cannot be executed as directed, but may be executed substantially by another mode, it shall be so executed. But in the former of these cases the master of the rolls said • “ The court
The case of Attorney General v. Andrew, 3 Ves. 633, was of a charity given to the trust of a college in the University of Cambridge, England. The college declined administering the trust, and the chancellor found, upon the evidence, that the college had never accepted the trust, and that they had only acted as trustees so far as was necessary to preserve the funds. Upon that ground they were discharged from the trust; but the chancellor expressly repudiated the idea of withdrawing such a trust, accepted by their predecessors, upon the ground that the college were put to inconvenience or supposed disadvantage by continuing to administer the charity.
The case of Attorney General v. Dixie, 2 Myl. & K. 342, was a devise of property for the establishment of a grammar school; and the funds proving more than sufficient for such a school, the court of chancery allowed other branches of education to be introduced, leaving undisturbed the original grammar school. The case of the Attorney General v. Haberdashers’ Co. 3 Russ. 530, is to the same point; there being no change of the original school and no change of trustees.
The cases of Greenwood v. Wakeford, 1 Beav. 576, and Coventry v. Coventry, 1 Keen, 758, were cases of private trusts, as to which we suppose the court of chancery may properly allow a change of trustees upon grounds that would be entirely inadequate in cases of public charities, the one being principally financial, the other clothed with general administrative powers and supervision of the application of the public charity. The cases just cited are the same referred to in Hill on Trustees, 190, and illustrate and qualify what might otherwise seem a more general proposition enunciated by the writer.
The case of Attorney General v. Ironmongers’ Co. 2 Beav, 313, and 2 Myl. & K. 576, was a case arising upon a failure oi one class of objects of the public charity of Thomas Betton
The case of Ex parte Blackburne, 1 Jac. & "Walk. 297, was a charity for poor boys, and among the trustees were certain trustees ex officio, who were by the court of chancery released from the charge of safe-keeping and management of the funds composing the charity, on the ground of -inconvenience in managing the same. But the change authorized by the court was only to the extent of trusteeship for managing the funds, leaving the selection of the persons to be the subjects of the bounty to be made by the original trustees, in conformity to the declared intent of the donor.
The case of the Reading Dispensary, 10 Sim. 118, arose under the statute of 52 G. 3, c. 101, known as Sir Samuel Romilly’s Act, and the more immediate question was as to the authority, under that act, to transfer charity funds from the present managers to another; but the remarks of Vice Chancellor Shadwell are very significant upon the broader question of the general powers of a court of equity in such cases, and will not be found to aid the complainants.
With such lights as are thus furnished us, we enter upon the consideration of the particular case before us. Here the general question is, whether a case is presented in which the court can, in the exercise of any chancery powers they possess, properly and legally withdraw these funds from the present trustees, and appropriate them to a divinity school not connected with Harvard College, and to be administered by a board of independent trustees. This question, as was truly said by one of the learned counsel for the complainants, “ is one purely for the decision of the court, upon its own sole responsibility, in the exercise of one of its highest functions, upon one of the most delicate and sacred subjects committed to its care.” We feel this responsibility, and this imposes upon us, in the first place, the duty to look carefully to the character of these trusts, their origin, and the- leading purpose of the donors. This involves the inquiry, whether the leading object in raising these funds was to furnish theological education in Harvard College by a school, a branch of that university, and whether these donations were not given by the donors to the special trust and charge of those composing the government of Harvard College, and with the expectation that they would always remain under their supervision, and have the security arising from the well known organization of the government of the college.
As to the donations made for theological instruction prior to
As to the origin of the measures that led to the large addition to the funds, for the purpose of promoting theological instruction, that was made in 1815 and 1816, there can be no controversy. This is very fully stated in the documents spread before us by the complainants. The facts may be found also in Quincy’s History of Harvard University, as weE as in the Eeport of the Board of Overseers made in 1846. It appears that, soon after the donation of Samuel Parkman, given to aid in the support “ of a professor of theology at the said coEege,” and under the date of December 18th 1815, a circular was issued by the corporation of Harvard CoEege, representing the necessity of raising a fund for increasing the means of theological education in the institution. This circular states the object to be “ to adopt measures for increasing the means of theological education at the university. In order to enable students in divinity to reap the benefit of the eminent advantages -which the coEege possesses for this purpose, there is need of funds for assisting meritorious students in divinity, of limited means, to reside at the university for a requisite time.”
It is apparent, therefore, that the movement to obtain these funds proceeded directly from the corporation of Harvard College. In consequence of this appeal made by them to the public, the sum of about thirty thousand dollars was soon raised, and, agreeably to their suggestion, a voluntary unincorporated society, under the title of “ The Society for the Promotion of Theological Education at Harvard University,” was established.
These funds, as soon as obtained, were used by the government of Harvard College, in connection with other funds held
By article 10 of the constitution of the society, adopted in 1824, it was provided “ that-if at any time hereafter the society shall think it best to appropriate the funds to be hereafter collected, to a theological institution disconnected from Harvard College, and if the directors of this society and the President and Fellows of Hárvard College shall assent thereto, it shall be lawful for the society to appropriate all the funds hereafter col lected to such other theological institution.” By the deed of transfer to the corporation in 1830, the power to transfer such funds as were collected by this society, after 1824, to a separate institution, was given to the corporation, the amount being about nineteen thousand dollars. It will be seen that it was confined strictly to funds collected by the society after 1824. In 1841, a donation of ten thousand dollars was made to the corporation of the college, through the efforts of an incorporated society established in 1831, “ for promoting theological education,” and
There is certainly ground for the argument that the donors of these particular sums contemplated the possibility of their being appropriated to a theological school distinct from the college, and that these sums might, without any violation of the intention of the donors, be so transferred, if the president and fellows assent thereto. We do not however understand that it is the purpose of this bill to ask any such limited transfer, leaving the government of the college to continue to administer the remaining and much larger donations, which they hold from other sources, in trust for promoting theological education. We are therefore brought back to the inquiry as to the character of the other donations given to them in trust for promoting theological education.
It appears that, just previous to the circular of the corporation, issued in 1815, soliciting donations for this purpose, Samuel Parkman had given what was then deemed a large donation, to be applied “ to support a professor of theology at the said college ; ” and he had further declared “ that it be considered one of the special duties of said professor to instruct and take charge of such resident graduates at the said college as may be intended for the ministry; and this condition shall form a part of any statutes which may be made by said President and'Fellows of Harvard College; it being, however, understood that this shall not prevent the corporation from assigning to such professor any other duties, relative to the general instruction of the students in said college in theology, not in their opinion inconsistent with this principal design; ” thus directly connecting the donation with the college.
Many of the other donations, made subsequently to this, are equally explicit. The large bequest of Sarah Jackson, of ten thousand dollars, is given “ to the President and Fellows of Harvard College, in trust to hold the same for the benefit of the
The will of Benjamin Bussey (1842) provides for the conveyance to the President and Fellows of Harvard College, after the discharge of certain precedent trusts and annuities, of a large and valuable estate, which estate the testator declares “ shall be taken and held by said President and Fellows of Harvard College as a permanent public corporate body, specially charged with the care and superintendence of the higher branches of education.” He then proceeds to declare the objects of his bounty, and, after making an appropriation for an agricultural school, to be under the supervision of the college government, declares that, as to the net income of one half of all the estate so conveyed, “ there shall be annually appropriated one half thereof to the encouragement and promotion of theological education, and the other moiety to the encouragement and promotion of legal education in said college.”
Several donations are given in more general terms; some of them, “ to the theological school; ” some, “ to the use of
In seeking the answer to the inquiry whether these funds, or some considerable portion of them, were specially intrusted, as to their management and oversight, to the government of Harvard College, we have thus looked at the declarations of trust, as declared by the donors. In pursuing this inquiry, we naturally look at the character of the trustees thus selected by the donors, to ascertain whether it was one in which peculiar confidence might be placed, and one well adapted for securing permanently the faithful execution of such trust. We find that the government of Harvard College was composed of the president and fellows, a permanent corporate body, its members being selected from our most distinguished and responsible citizens, acting in connection with a board of overseers embracing the highest public functionaries in the Commonwealth, both executive and legislative, associated with thirty other persons selected from the various professions and other avocations, for their supposed devotion to the cause of sound learning.
The question whether the theological school was intended by the donors to be attached to Harvard College as a branch of the university, and to be under the control of the government of the college, was somewhat early discussed, in consequence of a claim urged by the Society for Promoting Theological Education in Harvard College to have a greater participation in the government of the same. The subject was referred by the president and fellows to a committee of their board, consisting of Rev. Dr. Kirkland, Hon. Charles Jackson, and Hon. Francis C. Gray, from whose report we make the following extract: “We think that the college government cannot with propriety alienate one of the chief departments of the institution committed to their care, and that to do so would defeat the declared object of the contributors to the theological fund, which was to promote theological education in Harvard University.” This report, made on the 17th of May 1827, was accepted by the president and fellows.
The character of these donations was also very clearly and
Having thus ascertained the source of these donations composing this public charity, the next inquiry is, upon what grounds the complainants ask for the interposition of this court as a court of chancery, to withdraw this trust and commit it to new trustees, and to be by them applied to a separate and wholly independent divinity school. For such reasons we look at the bill of the complainants, and the grounds there assigned.
The causes assigned are of a different character. They may be thus stated in brief, or as a summary of this part of the bill; namely, that it has become apparent to the complainants that the college and the theological school cannot be conveniently managed by one and the same corporation; that the exercise of the trusts of the public charity for a divinity school is in a high degree inconsistent with and injurious to the due execution of another and prior trust vested in them as trustees of the college; and further, that the united management of the two institutions is also injurious to the divinity school, and the present trustees cannot acceptably fulfil the intents and purposes of the donors of that charity, as the same might be fulfilled by other trustees, and by a separate institution wholly disconnected from the college. These positions are in the bill accompanied with a more detailed statement of the grounds relied upon to sustain them. 1st. It is said that the college is, to some extent and for certain purposes, a state institution; that, by the Constitution and laws of the Commonwealth, every denomination of Christians shall be equally under the protection of the law;
In respect to the point first stated, that the relation of the college to the State, and the great principle of equal rights of all religious sects, recognized by our constitution, render it inexpe
So far as any conditions for administering these funds were prescribed by the founders of the divinity school, or those who made the large donations of 1816 and of 1824, they were certainly broad and liberal, and open to all to enjoy their benefit, irrespective of sect. They were to be applied “ to assist young men of competent talents, pure morals and piety in preparing themselves for the Christian ministry, and to provide for the best means of instruction which the funds of the society will admit, it being understood that every encouragement be given to the serious, impartial, and unbiassed investigation of Christian truth, and that no assent to the peculiarities of any denomination of Christians be required either of the instructors or students.” And it is in accordance with this provision, as recognized and enforced in the statutes and ordinances of the college, that the divinity school has been, and now is, administered.
2. A further ground stated in the bill is, that the general usefulness of the college is impaired by the prejudice excited against it as being a sectarian college, on account of the divinity school attached to it. But the complainants aver that there is no foundation • for such charge against the college, and that its officers and instructors are not justly obnoxious to the imputation of making the college a sectarian university, and that it is not such.
How far the ground of an unfounded prejudice against 1he college can be made the basis for the action of this court in
As to the alleged inconveniences and embarrassments sustained by the divinity school from being under the government of the college, we perceive no new intervening cause occasioning them,that did not exist at the period of forming the union. All the reasons promising greater usefulness and success to a divinity school conducted as a separate and independent institution, and assuming a more marked and distinctive sectarian character, existed in as full force then as now. All these, we must presume, were duly weighed with the advantages that vzould result in giving the divinity school character and patronage from its being a branch of the university, and under the like responsible board of trustees. In the opinion of its founders and donors, the greater practical good was to be accomplished through such connection. They selected this instrumentality, and the government of the college approved of and ratified it. This being so, it is not for this court to pass upon the question of the expediency of the course taken by the donors of this charity, in originally connecting the divinity school with the college.
That there is not an entire unanimity upon the subject among those that have been connected with the university was conceded by the counsel for the complainants; and they very frankly introduced into the case the reply of Ex-President Quincy, who presided over the university from 1829 to 1845, in answer to the inquiries propounded to him by the counsel, as to the expediency of the separation of the divinity school, as asked for in this bill, who closes an elaborate view of the whole subject by stating his opinion to be “ that a continuance of their present relations to each other is best both for the divinity school and the college.”
But assuming it to be shown, by the evidence in the case, that inconveniences and embarrassments do arise from having the theological school attached to the university, and under the same board of trustees; and that, in the opinion of the witnesses, it would be highly desirable, and for the interest of both, that an entire separation should take place; the further question yet remains, which the court must decide upon its own sole responsibility, whether any case is shown to exist which authorizes this court to withdraw these funds from those to whom they were committed by the donors of the charity, and transfer them to a separate and independent board of trustees, to be applied m maintaining a separate school.
That the doctrine of the English court of chancery, as to executing the general intent of a testator cy pres, is much broader than any that has been adopted in the American courts generally, seems to be unquestioned. 4 Kent Com. (6th ed.) 508, note. 7 Ves. (Amer. ed.) 36 5, note. Fontain v. Ravenel, 17 How. 369.
But we have not deemed it material to the decision of the present case, to enter upon the consideration of that difference, inasmuch as it appears, that in the court of chancery in England the cy pres doctrine is inadmissible to vary the constitution of a charity on grounds of expediency only. Boyle on Charities, Bk. 2, c. 3, § 2, and cases cited. Upon this point, we refer to the case of Attorney General v. Hartley, 2 Jac. & Walk. 382, 383, which was an application to change a public charity. Lord Eldon said : “ I observe, that many of the witnesses say, that, as a grammar school, this will be of no benefit to them. Now that is a consideration with which, if, the loss of benefit is not improperly produced, I have nothing to do; for if the founder thought fit to establish a grammar school, and if afterwards, from different notions about education prevailing, it became of much less public benefit, that is not a ground upon which a judge can alter it. He that created it had the right to determine its nature. I can give no remedy.” And in Attorney General v. Earl of Mansfield, 2 Russ. 520, Lord Eldon said : “ There is no power, at least none here, to alter the foundation, with a view to any superior benefit which might arise from an institution of a different nature, however desirable it might be, if it were within the scope of my authority, to substitute the one for the other.”
The case before us does not present, as a ground for our interposition, that there are not present trustees to discharge this
Looking at the origin of these funds, we find a large portion of them manifestly designed for the purpose of promoting theological education at Harvard College, and by a school, to be a branch of the university. We find these funds, to a large extent, so specifically placed by their donors under the trust and supervision of the government of the college, that they must, be administered by them. We find strong reasons for believing that the donors had specially in view the placing these funds under the care and supervision of a well known permanent public body, the President and Fellows of Harvard College, acting with the concurrence of a distinct board of overseers, and that they were well authorized in the expectation that these trusts would be continued in the same board of trustees.
With regard to this portion of the ¿harity funds, the granting of the prayer of this bill would not only change the trustees, but would also vary the constitution of the charity; and charity funds, given for a specific and well defined purpose connected with the university, would be applied elsewhere, and to a divinity school wholly disconnected with the college.
These remarks are applicable to that portion of these funds acquired in 1816, in response to the circular of the government of the college, of December .1815. As to this class of funds, in the provisional arrangement of 1824, making certain stipulations as to the right to apply to a separate divinity school the funds that might be raised through the efforts of the Society for Promoting Theological Education, after 1824, they were treated and apparently understood by all parties, as funds not in any event to be withdrawn, but to be devoted to theological instruction in Harvard College. Thus it will be seen, that, while the origin of this part of the funds, and all the circumstances
In regard to that of Mr. Parkman, it will be seen from its date, that it was given before the movement made to raise funds for the more enlarged divinity school. It had, as is expressed in the gift, the precise purpose “ to support a professor of theology at the said college.”
In regard to the other donations above named, it is no less apparent, from the terms of the bequests or donations, that they were given to the exclusive trust of the government of Harvard College, and for the purpose of perpetuating a department at the college for the promotion of theological science as a branch of university education; and it is further to be remarked, that they were all made after the year 1827, and after the vote of the president and fellows, accepting a report of their committee declaring that the theological institution “ ought not to be committed to another corporation, having a distinct legal existence independent of the college,” and “ that the college government cannot with propriety alienate one of the chief departments of the institution committed to their care, and that to do so in this case would defeat the declared object of the contributors to the theological fund, which was to promote theological education in Harvard University.” See vote of President and Fellows of Harvard College, May 24th 1827.
As to the purposes of these donors, there can be no doubt. The government of the college have accepted the trust under the circumstances stated; and, in respect to most of these donations, have long been in the administration of them in the precise manner prescribed by the donors. No legal impediment
No ease is shown to exist for the application of the doctrine of cy pres ; for that is to be applied in giving a new direction to a charity, only when it becomes necessary to do so to prevent the charity failing, because it cannot be applied agreeably to the literal intention of the donor.
W2 have not overlooked the suggestion of the complainants’ counsel, that, as to those donations of the marked character we have alluded to, the court might avoid the objections taken to their withdrawal, by directing them to remain under the trust of the complainants, as to the financial care, but with authority to pay over the income to the trustees of a separate school, to be by them disbursed. We find no authority for adopting such a scheme for these charities, finding the trust to embrace the higher duty of supervision of the administration of these funds, and the mode of their application; and the purpose of the donors being such as we have stated.
In view of all the facts before us, the court are of opinion that they cannot, in the proper exercise of any chancery powers they possess, direct the withdrawal of the funds above described, and others of like character, from the supervision and trust of that permanent public corporate body, to which they were intrusted by their donors for the purpose of maintaining a theological school as a branch of the university, and commit them to an independent board of trustees, to be appropriated to maintaining a separate theological school. We feel constrained, therefore, to deny the prayer of the complainants for a change in the trust in relation to this public charity.
A contrary decision would furnish a precedent dangerous to the perpetuity and sacredness of all our great public charities, leaving the question of the management and supervision of our public charities to be the subject of change with every fluctuation of popular opinion as to what may be the more expedient and useful mode of administering them. Bill dismissed.
The chief justice did not sit in this case.
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