Submitted January 14, 1935
Decided January 24, 1935
Appeal from the Supreme Court, Appellate Division, Second Department.
John Coward, Munn Brewer and J. Henry Esser for appellants. Paul Windels, Corporation Counsel ( Isaac Phillips of counsel), for the City of New York, amicus curiae. Richard Ely for respondent.
James Marshall, as amicus curiae.
The corporate operation of the respondent may lawfully entitle some of its members to receive pecuniary profit other than reasonable compensation for services in effecting any of its educational purposes.
The order of the Appellate Division should be reversed and that of Special Term affirmed, with costs in this court and in the Appellate Division.
CRANE, Ch. J., O'BRIEN, HUBBS, CROUCH, LOUGHRAN and FINCH, JJ., concur; LEHMAN, J., not voting.