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29 S. W. 51, writ denied as to attorney's fees); but it is not necessary for us to decide that question, and we do not express any opinion with reference thereto. But so far as the indebtedness to Franklin is concerned, evidenced by the 26 notes, no valid lien exists against the property, since that debt has been paid in full. In Colleps v. Lumber Co., 185 S. W. 1043, it is said:

built the house, and that prior to the execu-, v., Texas B. & L. Ass'n, 8 Tex. Civ. App. 500, tion of the instruments mentioned he had an agreement with Franklin with reference to the matter, and all of the terms of the contract were agreed upon between him and Franklin, how the notes should be handled, and how the material should be furnished and paid for; that Franklin was not able to buy the lumber and material to build the house; that Herring furnished the lot, and the Barber Lumber & Mill Company furnished all the material and paid the contractor; that the contractor's pay roll was paid each week; that the contractor did the work on the building for a specified amount, and when his work was finished the Barber Lumber & Mill Company paid him the balance, after having paid all his labor while the work progressed; that no lumber or material was furnished before the papers were executed, and no money was furnished before the material and lumber were furnished.

If the appellees are entitled to judgment of foreclosure of their alleged lien it must be on the theory that they complied with the terms of article 5631, Vernon's Sayles' Tex. Civ. Stats., which provides in part:

"When material is furnished, labor performed, erections or repairs made upon a homestead, if the owner thereof is a married man, then to fix and secure the lien upon the same, it shall be necessary for the person or persons who furnished the material or performed the labor, be

fore such material is furnished or labor is performed, to make and enter into a contract in writing, setting forth the terms thereof, which shall be signed by the owner and his wife, and privily acknowledged by her, as is required in making sale of a homestead."

"There is only one way known to the law by which one who furnishes material or labor homestead, to fix and secure a lien upon the for the erection of, or labor made upon, the same," that is, by complying with article 5631, supra.

It has been held that an express agreement in a mechanic's contract that he shall have a lien upon the homestead as provided by law will not create a lien until the re-. quirements of the statute have been complied with. Cameron v. Marshall, 65 Tex. 7; B. & L. Ass'n v. Logan, 33 S. W. 1088. In the absence of such contract, those who furnish labor or material to the contractor have no lien of any character. Colleps v. Lumber Co., supra, and cases there cited. See, also, Ellerman v. Wurz, 14 S. W. 333, in which the Supreme Court says:

"To obtain and fix the material or mechanic's lien authorized by these provisions, the prescribed requirements must be strictly followed and complied with."

A deed of trust on the homestead, which does not show the contract, or the consideration, although duly executed by both husband and wife, does not create a lien on the

homestead under the statute or under the

The Constitution of the state of Texas Constitution. Walker v. Woody, 40 Tex. Civ. (article 16, § 50) provides in part:

"No mortgage, trust deed, or other lien on the homestead shall ever be valid, except for the purchase money therefor, or improvements made thereon, as hereinbefore provided, whether such mortgage, or trust deed, or other lien, shall have been created by the husband alone, or together with his wife."

App. 346, 89 S. W. 789, writ of error denied. "No lien can be fixed, and no foreclosure had, upon the homestead by an implied written contract or by an express oral contract." West End Town Co. v. Griggs et ux., 54 S. W. 904. While the decision of the Court of Civil Appeals in this case was reversed by [1-6] It will be noted that in the contract the Supreme Court in 93 Tex. 451, 56 S. W. 49, between the Herrings and Franklin, the Her- yet the reversal did not affect the soundness rings bound themselves to pay the contractor of the announcement by the Court of Civil "$1,200 in cash, and the balance in twenty- Appeals quoted above. A deed of trust on a six monthly installments," etc. Whether this homestead to secure the payment of a note $1,200 was the estimated profit of Franklin is invalid, there being no contract in writing under the contract, and the $1,049 evidenced for work and material, even though the by the 26 installment notes was intended money secured on the note was afterwards to cover the material and labor items, we are used for the purpose of improving the homeleft in doubt, except so far as light may be stead. Girardeau v. Perkins et al., 59 Tex. shed through the testimony of Barber, but Civ. App. 552, 126 S. W. 633, writ denied. the two $600 notes were not executed to There can be no lien acquired under this Franklin, neither did he have a lien to se- statute upon a homestead by a materialman cure the payment of the same. According who furnished the material, not to the ownto Barber's 'testimony, Franklin did not ers of the property, but to the builder who furnish the material or pay for the labor has contracted with the owners, unless such expended on the erection of the building. It materialman has complied with the provimight be a question whether under article sions of the article. Gilmer v. Wells, 17 5631 a lien could be fixed on a homestead Tex. Civ. App. 436, 43 S. W. 1058, 1060, writ to secure the payment of a contractor's prof- denied. Appellees cannot claim a lien by it on the contract (see Summerville v. King, virtue of a contract between the Herrings 98 Tex. 332-341, 83 S. W. 680; B. & L. Ass'n and Franklin, for under this contract Frank

which no lien was retained by him, and $1,- existence after the improvements were made. 049 in notes, all of which has been paid. The * * * The power of a husband and wife, in reference in this contract to the two $600 the manner prescribed by the Constitution, to give lien on homestead, by express contract, to notes does not disclose that said notes were secure payment of indebtedness incurred for given for material or labor. to be expended, work or material used in constructing improvenor does the evidence show how much, if ments on the homestead, is made clear by the any, of the $1,200 was so expended on the trust deeds, which can exist only through conConstitution, which speaks of mortgages and homestead. Moreover, the notes were not tract. *** The contract husband and wife given to Franklin, and therefore Franklin must make before lien for work or material used would not be entitled to a lien to secure the in improving their homestead can exist under the statute need not state that it is the intent same. Under the deed of trust given for the to give lien to the contractor, and such a benefit of the lumber company no contract is statement might not defeat the right of a conset out by the terms of which it is shown tractor to fix and secure the statutory lien; that the debt therein attempted to be se- the parties evidences intention thereby to give but when the agreement or contract made by cured is for improvements on the homestead. lien, then lien exists by force of the contract, It cannot be held that a mere reference to and may be enforced under the rules applicable the contract between Franklin and the Her- to such liens. *** A contract made under rings in the deed of trust given by the Barber such circumstances ought to be sustained, unless in violation of express law or contrary to pubLumber & Mill Company created a lien in lic policy. There was no law in force expressly favor of the company against the homestead. prohibiting such a contract." We are of the opinion that the court erred in adjudging that the appellee herein had a valid lien upon the premises involved, and in granting the foreclosure. The judgment of the trial court is reversed, and the judgment here rendered for appellant.

Reversed and rendered.

On Rehearing.

It is urged that the case of Lippencott v. York, 86 Tex. 276, 24 S. W. 275, is an authority for the proposition that a husband and wife may by contract fix a lien on the homestead for labor performed thereon and material furnished, independently of any statutory provision. We do not so understand such decision. By reference to the questions certified, especially to questions 2, 3, 4, and 5, it will be noted that the Supreme Court made a distinction between liens created by law under article 16, § 37, of the state Constitution, such as mechanic's liens, materialman's liens, etc., and liens created by contract. After quoting article 16, § 50, of the Constitution,

the court said:

"This section of the Constitution, while it operates as a restriction on the power of a husband and wife to impose charges upon the homestead, recognizes their power to do this by mortgage, trust deed, or other lien to secure payment for work or labor used in constructing improvements upon it; and in the absence of legislation declaring the only mode in which this may be done, no good reason is perceived why it may not be mortgaged to secure a debt contracted as a debt must be to bind the homestead for labor or material used in improving it."

After quoting article 16, § 37, of the Constitution, and discussing the same, the court further said:

"Liens by contract take effect from time of execution, and have no retroactive effect as to third persons. Mechanics' and like liens, when fixed and secured, as to the improvements made, will be given priority over a mortgage or like lien existing on the land at the time the facts occur which give right to such lien; while a lien created by contract solely will attach to improvements subsequently made on the land covered by the lien, and will not give way to a junior lien of the same character coming into 203 S.W.-10

In

By reference to the first question contained in the certificate, it will be seen that the contractor who erected the improvements complied with the requirements of the law as to the fixing of the mechanic's lien, and that said contractor, while said mechanic's lien was in force, assigned the debt, together with the lien, to a third person, to whom the husband and wife executed a deed of trust upon the homestead, which was privily acknowledged by the wife, and that the husband and wife executed to the assignee certain notes, and that such assignee agreed with the husband and wife to extend the original debt and lien for a period of years. The question propounded was, Did such deed of trust constitute a valid lien upon the homestead? this case the mechanic's lien was fixed on the homestead, and the only question involved was as to whether under the contract described between the husband and wife and the assignee the extension of the debt and lien would invalidate the lien against the homestead. To the question propounded the Supreme Court answered in the affirmative. Under the statute as it then existed the mechanic's lien given the contractor by law would have ceased to be operative if suit had not been brought to enforce it within 12 months after it was fixed, although the debt secured by it was still valid and might be enforced through a personal judgment. Acts of 20th Legislature, p. 114, § 17, of said act. In regard to the liens created by law, irrespective of contract, it was held that it was necessary to enforce them in the time and in the manner required by the statute; while, on the other hand, it was held that the husband and wife might, by an express contract complying with the requirements of the Constitution, extend the lien so fixed by the contractor, and that it might be enforced in the time and manner specified by the contract. We think this is the full extent of the holding in the cited case. The statute, as it was then and as it is now, and the Constitution require that in order to fix a lien upon

See

the homestead for work and material used | County. From judgment for plaintiff, dethereon the contract shall be in writing, and fendants appeal. Affirmed. executed by the wife in the manner and form required in making a sale and conveyance of a homestead. The statute then required, as it does now, that such writing executed by the wife must contain the terms of the contract.

McLean, Scott & McLean and W. P. Walker, all of Ft. Worth, for appellants. Capps, Cantey, Hanger & Short, of Ft. Worth, for appellee.

BUCK, J. [1, 2] This is an injunction suit against the tax collector and other nam

them from enforcing the collection of the taxes assessed against the real estate and personal property of All Saints Hospital, alleged to be an institution of "purely public

The appellees' counsel urges that it would be unjust, even unconscionable, to deny appel-ed officers of Tarrant county to restrain lees a recovery in this case, since it is insisted the facts show that appellees furnished all the material, paid for all the labor going into the improvements, and that it is admitted that the Herrings only paid $1,049, with in- | charity," and therefore exempt from taxaterest thereon, leaving unpaid on the contract price the amount of $1,200, represented by these two $600 notes. But the Constitution and the statute require certain things to be done and certain steps to be taken before a lien can be fixed on a homestead owned by a married man. The directions are plainly given so that he who advances his money, furnishes his material, or expends his labor may be protected. If he fails to follow the directions, he must bear the consequences. The courts are powerless to help him. It is not a question of equity so much as it is a question of compliance vel non with the constitutional and statutory requirements. Motion for rehearing is overruled.

tion under the statutes and the Constitution of the state. Plaintiff having abandoned its prayer for injunctive relief as against the collection of the taxes on its personal property, and having offered to pay the same, and the court having entered judgment against it as to the taxes on its personal property for the years 1915 and 1916, and having granted the injunction only as to the taxes on the real estate and the improvements thereon for said years, the one question presented by this appeal is: Do the facts show this appellee to be such an institution as under section 6, art. 7507, Vernon's Sayles' Tex. Civ. Stats., is exempt from taxation, and as further authorized under section 2, art. 8, of the Constitution of Texas? Article 7507, § 6, reads as follows:

"All buildings belonging to institutions of

SCOTT et al. v. ALL SAINTS HOSPITAL. purely public charity, together with the lands

(No. 8829.)

(Court of Civil Appeals of Texas. Ft. Worth. March 30, 1918. Rehearing Denied April 27, 1918.)

1. TAXATION 241(2) - EXEMPTIONS-STATUTE "PURELY PUBLIC CHARITY."

A hospital organized by some members of a church parish, having the general purpose to provide for and nurse sick and destitute persons, to which all persons in need of treatment were freely admitted whether they could pay or not, though such as were able to pay were expected to do so, as the hospital had no source of revenue other than such fees and donations to it, was a "purely public charity" whose land and buildings were exempt from taxation under Vernon's Sayles' Ann. Civ. St. 1914, art. 7507. § 6, and Const. art. 8, § 2.

[Ed. Note.-For other definitions, see Words and Phrases, First and Second Series, Purely Public Charity.]

2. TAXATION 251-CHARITIES PURPOSE OF CHARGE-SUFFICIENCY OF EVIDENCE.

In suit by a charitable hospital against the tax collector and other officers of the county to restrain them from enforcing the collection of taxes, evidence held not to show that the charge made by the hospital against patients financially able to pay was made with a view to profit, but rather that it was made to carry out the dominant purpose and general beneficent design of the founders of the hospital.

belonging to and occupied by such institutions not leased or otherwise used with a view to

profits, unless such rents and profits and all moneys and credits are appropriated by such institutions solely to sustain such institutions and for the benefit of the sick and disabled members and their families and the burial of the same, or for the maintenance of persons when unable to provide for themselves, whether such persons are members of such institutions or not. An institution of purely public charity under this act is one which dispenses its aid to its members and others in sickness or distress, or at death, without regard to poverty or riches of the recipient, also when the funds, property and assets of such institutions are placed and bound by its laws to relieve, aid and administer in any way to the relief of its members when in want, sickness and distress, and provides homes for its helpless and dependent phans of its deceased members or other per

members and to educate and maintain the or

sons."

Without undertaking to set out any considerable portion of the testimony in the exact words of the witnesses, we think the evidence adduced establishes the following state of facts: The institution had its origin in the minds and hearts of some 15 charitably inclined ladies, members of Trinity parish, Ft. Worth, Tex. They felt the need in the city of a hospital where the sick among the

Appeal from District Court, Tarrant Coun- poor could receive careful nursing and skillty: Bruce Young, Judge.

ed medical treatment, such as would not be Action by the All Saints Hospital against available to such indigent persons in an inMarvin Scott and others, officers of Tarrant stitution run for profit. These ladies as

sessed themselves 50 cents a month, and augmented this sum by going among the citizenship of the city and receiving small contributions. Finally they bought a piece of property, 100x100, on Magnolia avenue, for $400, to pay which purchase price took several years. In 1900 a charter was secured, and the first building was started. The brick masons working on it donated a part of their time, and from the Thurber Brick Company the ladies secured a donation of brick; the hauling and the freight thereon being paid for by the recipients. The outside walls were finally erected, and thus the building stood for years, awaiting the response to the charitably inclined for funds necessary to complete the building. Then the first floor was finished, and the first inmate, a charity patient, was installed. Subscriptions and donations came, not only from the citizenship of Ft. Worth, but from other portions of the state, and the buildings were completed and equipped. One wealthy and charitable donor fitted up an operating room. No one connected with the management receives any revenue or profit from the conduct of the institution, except the matron, nurses, and other paid employés. The charter states the purposes for which the corporation was organized in the following lan

guage:

"The purpose for which this corporation is the erection and maintenance of a charity hospital for the care of the poor and destitute, sick, and afflicted. Its general purpose shall be to provide for and nurse sick and destitute persons, and such patients as may choose to apply for admission under the rules and bylaws to be adopted by the trustees. Its plan of organization shall be to organize a hospital for the purposes aforesaid, as the best interests of society may require, and to provide therefor such management as may be necessary to carry out its general purposes as a church charity, provided always that such religious instruction and public worship as the trustees may prescribe therefor shall conform to the doctrine of the Protestant Episcopal Church in the United States."

The by-laws provide that the attending physician and surgeon on duty shall have charge of the charity patients, and shall visit the hospital daily, and oftener if necessary. As to admission of patients it further provides that:

"Pay patients, or boarders, shall be admitted to the hospital on rates to be established by the officers and upon agreement with them, upon the application of any medical practitioner of any school of medicine and of reputable character, upon the approval of such application by any members of the medical board or any of their appointees, or by a majority of the board of trustees, subject always to the capacity of the hospital and to the provisions of the by-laws.

"Charity patients shall be admitted to the hospital only to the capacity of the hospital and association to care for same. Furthermore, provided that charity patients shall be admitted without reference to the religious sect or denomination to which they may belong."

Therein it further provides:

"The board of pay patients. per week shall be fixed by the officers, and it shall be the duty one week's board each week in advance, and of the superintendent to collect from patients pay the same to the treasurer, excepting only in cases of charity patients."

Mrs. Bevans, president of the board of trustees, testified in part as follows:

*

"The money which was required to complete the building was raised through subscriptions and by taxing ourselves so much, probably $25 and by having teas and giving balls and tag days a year. We were all poor, and did not have much goods. * *Not a nickel that was put into this proposition was expended with the idea of receiving any return on it. There has never been any stock issued, and such a thing as stock certificates has never entered our all character of surgical work, and it has rooms minds. * * * The hospital is equipped for for the patients and operating rooms; is an operating room donated by Capt. Burnett, Southwest. There are 31 rooms in the hospital. which is said to be as fine as there is in the There are a corps of nurses connected with the hospital; we have nurses in training, who also have to be paid. The hospital also provides medicine and other things necessary for the treatment of the sick, for which the hospital has to pay. The only way the hospital has of charity work at all is by fees paid by persons securing any revenue to enable it to do any who are able to pay for services which they receive there. The hospital has not a cent of permanent endowment, depending entirely upon fees, charges, or voluntary contributions which it may get.

"In the operation of the hospital we take all poor, indigent, and helpless patients that we possibly can, and give them every attention, just the same attention as if they paid $45 a week for a room, which is our best room; there is no distinction whatever. If a person is injured or sick in such way as that he could be admitted to any hospital, such a person is not rejected under any circumstances; he is always accepted; we make room for him some way. If it is a real case that has to come, our superintendent has been wonderful in making room for such cases; we have always taken nearly every one that has tried to get in. If a person is brought to the hospital who is able to pay for the services rendered to him, the pay will be accepted; if they do not pay, we just have to do without it; we do not force any one. There is no distinction made in the manner of treatment between those who pay and those who do not pay.

"With the exception of the people who work in the hospital, there is no one who draws any money from the institution, except this last month our secretary has had a great deal of expense; we gave her $20, to buy stamps and received. There is not a cent in any shape or such things, and that is the first she has ever form that goes to the trustees or any one like that in the way of remuneration.

"Of course, the hospital really does not pay its expenses, but if it did, and there was anything left, it would be used to pay off the mortgage. After the mortgage is paid up, anything that is taken in by the hospital over and above its expenses will be used to enable us to do more charity; we would enlarge the place so as to be able to do more of that kind of work; that is our intention and our ambition; I don't know that it will be fulfilled, but that is what we are looking forward to. *

**

"We have rooms in the hospital at different prices, ranging from $15 to $45 per week, and wards ranging from $6 to 10 per week. These prices are paid by patients in the hospital who are able to pay them. We have one room and three beds that are set aside and devoted exclusively to charity patients, but we also devote

other rooms to charity patients, when there is occasion to do so. All of the other rooms in the hospital except this one room I speak of are subject to be rented to pay patients when they are not already occupied.

"If a patient comes to the hospital and wants to be treated and is received into the hospital, he is expected to pay, if he can. We sometimes make inquiry beforehand as to their abil. ity to pay, but when a man is very sick, you cannot make an inquiry. The patients are usually brought there by some doctor, but others make application in person. * * *

"It is not a fact that every patient is expected to pay who does not come as charity patient and represent that he is not able to pay. If you come out there to the hospital and we know your circumstances and know that you are able to pay, we would expect you to pay. Not all the time would we expect a person to pay who just came there and got a room, without stating at the time that they were unable to pay and would be a charity patient; in most cases such patient would be expected to pay; otherwise we could not run the hospital at all; we could not run the hospital a day or an hour, if it was just purely a charity hospital."

Mrs. D. I. Brown, superintendent, testified

in part as follows:

"All Saints Hospital is a public charity in this way, that regardless of who it is, or what their condition is, except, of course, we do not take contagious diseases, such as smallpox or scarlet fever, they would be admitted. We have no contagious ward, and a patient with a contagious disease would not be admitted; otherwise there is no patient turned away; they are all admitted, and they are cared for in the same way as pay patients. Many times patients come in and do not specify their circumstances as they really should, either through pride or whatever it is; they state that they are expecting to get the money from home or from somewhere else, or they are going to sell some property or in some other manner secure the money to pay, but when they leave they may have quite a bill which they are not able to pay, and we have that obligation to carry. Sometimes a patient comes in and cannot pay the full amount that he would ordinarily pay or that would ordinarily be charged for the services he receives, and in that case he pays what he can and we accept that amount. At other times a patient will come in purely on the foundation of charity and such patients make no payments whatever. We take all the patients who are pay patients that apply for admission to the hospital, regardless of what doctor sends them there; and the same is true of patients who cannot pay; we take all of them, regardless of what doctor sends them there, and sometimes, you know, they just come there sick and want admission. I have never known a patient being refused admission who was indigent and helpless; there has never been one refused admission since I have been there, and when they are admitted, they get the same treatment as the other patients on that floor. They are attended to by a nurse just the same as any other patient on the floor. If they are in condition so that they can be left alone, they simply ring the bell if they want anything, and a nurse goes to them; if they are not in condition to be left alone, a nurse is furnished to stay right there

with them."

We think enough evidence has been quoted to sustain the conclusion reached by the trial court that All Saints Hospital comes within the provision of the exemption statute cited. A charity is defined in Paschal

"A gift to a general public use,' which extends, or doubtless may do so, either to the rich or the poor."

5 R. C. L. p. 293, says:

"A gift is a 'public' charity when there is a benefit to be conferred on the public at large, or some portion thereof, as upon an indefinite class of persons. Even if its benefits are confined to specific classes, as decrepit seamen, laborers, farmers, etc., of a particular town, it is well settled that it is a public charity. The essential elements of a public charity are that it is not confined to privileged individuals, but is open to the indefinite public. Without undertaking to be technically accurate, a 'purely public' charity may be defined as one which discharges, in whole or in part, a duty which the commonwealth owes to its indigent and helpless citizens. Undoubtedly it is the duty of the. state to educate its children, and thus fit them for discharging the duties of citizenship, to care for the indigent insane, its helpless orphans, and its poor who are sick and afflicted; and therefore any institution which, serving no selfish intent, discharges, in whole or in part, any such duty, is a purely public charity.'

of Law (2d Ed.) p. 895; Gerke v. Purcell, 25 See 11 C. J. § 1, p. 299; 5 Am. & Eng. Enc.

Ohio St. 229, 243; Dayton v. Speers Hospital, 165 Ky. 56, 176 S. W. 361, L. R. A. 1917B, 779, Ann. Cas. 1917B, 275.

A "purely public charity" is a charity "free from mixture of combination; *** the charity must be unalloyed with other purposes and objects." Watterson v. Halliday, 77 Ohio St. 150, 82 N. E. 962, 968, 11 Ann. Cas. 1096.

In Widows' & Orphans' Home v. Commonwealth, 126 Ky. 386, 103 S. W. 354, 31 Ky. Law Rep. 775, 16 L. R. A. (N. S.) 829, cited with approval in Green's Adm'rs v. Trust Co., 134 Ky. 311, 120 S. W. 283, 20 Ann. Cas. 861, it is said:

"The [constitutional] convention meant by the word 'purely to describe the quality of the charity, rather than the means by which it is administered, that it should be wholly altruistic in the end to be attained, and that no private or selfish interest should be fostered under the guise of charity, but it was never meant that, because a charity was limited by its terms to objects belonging to a certain sect, or fraternal order, or color, or class, it was a private, and not a public, charity."

But,

Other decisions interpret the word "purely" as intensifying or limiting the word "public" rather than the word "charity." Philadelphia v. Masonic Home, 160 Pa. 572, 28 Atl. 954, 23 L. R. A. 545, 40 Am. St. Rep. 736; Newport v. Masonic Temple, 108 Ky. 333, 56 S. W. 405, 49 L. R. A. 252. take either construction or interpretation, we think this institution as operated is a “purely public charity." It is open to the public, to the limit of its capacity, without reference to creed, occupation, or denominational affiliation. In the Ohio case of Gerke v. Purcell, supra, it is said:

"When the charity is public, the exclusion of in effect, to the force of [the word] 'purely' as all idea of private gain or profit is equivalent, applied to public charity in the Constitution.

Since the Texas Legislature adopted our statute from the law of Ohio, it must be presumed to have adopted the construction

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