OFFICE OF THE A-ITORNEY GENERAL OF TEXAS

AUSTIN

HonorableBCQU~P

PI Earin-; PmMdant The Dnlve~lt~ of Tu*4 Aurtln, Tex.44

Dear **Sir:** ::i

,_.::
I.

“<. ,, ~

.

:

that aaid bulldlng ohall always

48 the B..WaverlapSmith MemoPavilion t&s11 be under the the Eoapftal Bosrd, aa aov of the John &sly Eospltal of Qslv4ston,Texas.'

"The vill van exeautod on Harch'lo, 1936. Mrs. Smith died on October 12, 1938. At the t&no of the executionof the ~111, ths John Scaly Hospitalwas ~~%,dorth4 vlll oi \ n f this doparbnontupon >titor a8 folloy;**Honorablb** Raer P. Rainey, Preeld4nt,Page 2

the property **of** and owned by the 8tatb of Texas for the ~84 and benefit of the medloal branoh **of** the Wvorcilty of Texas.

"B a speol.al

aot of the L4girlatureapproved April 1 e; , 1901, the aharter of the City of Galveeton

vas amended, 8aId 4Imndmwnt 80 far arr.pertlnent reads a8 follovs:

"*Thkhospital in said olty knovn a4 the John Sesly BoopIta sh4l1, no long au th4 8am4 ir under lease frog the Btate,to thy City, be undo? the.4xolu4lv4 control of the B6ard of Xen4g4rs to bo lrnom as the John soaly Hospital. Board snd to conrlst of **5** momberr to be cho8en or appointed,,,a8 hereinafterprovldod,
evexv two years and wIthin.thIrtjr d6y8 after ln8tallatlon of a-nev Board of Coml88ton4~8. 'hro of th4 aemhers of said Hospital Board shall bs selsot4dfrom aald Board of Coinml88Ionor4, the member4 40 84lootedtb be the CommI88Ion4rof **Finrrioe &**  Rav4nu4 4nd **Comml88Ione~** of Strost8 and dlleys., etoil tvo to bo nmwd **QP** eelected by the Board of Regont.8 of the Univer8Ityof the State, and the fifth member to be **namd OP**  selootedby these four, provided,hovever, that all members of said John Scaly HospitalBaard 4ball.be resident8of the City. of Galveston,and provided further that ln oa8o a majority of said four cannot agree "pan a fifth, then fifth member sh411be nslaed or dtielgnated

by the Prarldsntof the Board of Commle8lon4r8~. (W. XL C4mm4lsLaws, page. 121, Sp4cIEilLswaor 1901.) ’
~"Follovlng

ihi $seage of this Acti the'Bo&d of Regonta'ofthe Ijnlvorsitg of Texas oxeouted 8 lease to the City of Galvestonooverlnp,the propertyknovn a8 the John Scaly Hoapltal of Qalverston.

~?!h&eafter, on Way 9, 1913, the Board of Regent8 of the Universityof Texas agaIn leased the preacL808 to the City of GalvestonPor a period of tventy-flvo Q44rs **f;g** and after **XUay 9,~1913,**  **said lease**  **expiring** Ray **9,**

**.** "This lesee was In full force knd effect on &larch 10, **1936,** the date,of the exeoutlon of the vi11 of Mrs. Jennle Scaly Smith, Deceased.HonorableRomor P. Rainoy,Prssldent,page 3

**“ Again**  on April 18, 1938, th4 Board of Regents of
the thliV4PSity

Of 3’4X48 baaed the pl'OpeFty kIIOVn a8 the John Seal0 HospIt to the City 0s Galveston for a term 0f tvonty-riV4 y4ar8, from R4y 9, 1938 t0 w4y 9,
**1963.**

**“Under** the provisionso.f the40 leases ,snd **during** j&o time-thes8me wor4 in forae and effwt, the John **Qsaly** Hoepita vaa under the oontrol snd managementof the Board 0s Hensgera 0s theJohn Scaly EOSpital.

: .?Ii-&nuary,-1941,'the lart nontiowd leas4 ~48 eurrendered~and 04no4114dfor tha X?ltyor Oalveaton,and th4 pPOpOrty 0018pP~s~ ths John Saaly Bo8pltalvan returned.tothe ROard of Regents ~f,the Univernlty of Texas, the propertybeing owned by the Stat4 of Texas for the use and-benefitof the medical branch of, th4 UnlvorSity Of ,TeX48. lphs City of Qalvestimhwhad no fwthor right 4r lntereit inrth4 opePation.ofsaid hospital,but said hospitalha4 been under.themanagerment snd oontPo1

0s the Board 0s Begonta 0s the univ43aty 0s Texas.

a?leas4advia me vhether or not under the vi11 0s mP8. Jennle Scaly slsith the Board 0s Regents 0s th4 Univ. 4rSity Of TeFexaS

18 the BUQO448Qi’ t0 the Board Of %UiSg4?8 of the John Scaly E08plt4Z In reapeot bd the controland mmag4ment.of the liaverley Smith lemorlal P4vlllon,"

The anavor to yo9P qu48tltin requW48 **a** oonstruatlon of the claws in paragraph **18** of the will **“ but**  bald Pavilion sbell b4 under the dIrectSOnend control Of the Boapltsl Board, an nov or hereafter orgsnlaed,of the John Sealy Hospital of G4lv48ton,Texas.”

&et.tia

f&t oba~erve

other' pertinentprovIsIon contained In the will. We quote the foXtowIng therefwmr

"SEvERTEpFpB:Ali the mat, realduo **and** remainder of my,gstate, left after the payment of th4 legaoiee given In C&Uses SRCORD to FWEBRNTR inChSiV4, 0s this ~111, I give, deVi84 and bequeath t; TRR SFiALY b SMZTR ~~~tiTI03eQR TER JOY SRALY HOSPITAL, to be held by

,HonorableEcmer P. Ralnsy, President,Page 4

To ereot fumIah and squ%p a Rorrpltal bulld- .l.ng t?ihe memory AS my hu8tand,R. Waverley Smith, to **be** ore&e& In the City of Wlveaton, TOUS, On the blook next to the **Boulevard,** bought by us and given to $826 Foundationwith that und4ratandfng. Said building ah4ll be ussd **as** a private and semi-private pevlllon for the use or patientsvho oan pay fop all or part or their lmspIt&bl

expensesbut It 18 ny iatontion that seid hOSpita1 shall not be operatad **for** profit blat that it8 ?404iptS 8hall bs applied tOYhd it8 upkeep.

"8. **Aftor** the exp4ndItu~eof suoh mount from this dOVi84 and Sequoath **SOP** the pUl'pO848 4pOOifi4d ill

8UbdivislonA or ,+&%a.

Olauao B a8 In th4 judgment Of said Fomdatlon lU4y bs n4~4884l'y

UId proper, it **18 w**  wish that th4 zwawindsrah411 oontimjo to **be** hold by said Foundstionin trU8t an a pemanent endovmont,th4 lnmu4 fmm vhich shsllbe aval.Lsblo, as noaoasary,for the pUl'pO848

Of keeping said buSl&lng in repair and i2pp,roVingit8 faOilitie8j 411 SU?DblB inUoPle to,be appli4d for tho~g+mal pUZ'~O84 of said Fomdation. To this end separateaoooUMa shall be kspt 9~sthe ~peratzng4Xp~848 0s said .pavilion

and 0s all r404ipta from operationand <~. f?OtS OtbO? 8OtU'O8B

8ll& 8lly balanoe OP be~aUO4~8 Of 8UOh ~' 0XpBP848,OVe~-andabovs F4COiptS fl'QQ ~Oth4l.aQXlrO48,

my be **paid.OUt** 0s **said inoons**  40 far as it may SUffiO4,artor payment gotar

repairs and Improv4ment8, 0s Its faollit2efi

as above provided.

w-8 3t 18 mp dOSir that said bulldIng 8hall.8lYaya

be knovn and d4signated**an** PHE R. WAVRSNXTR mOmK% PAVILIOR,but said Pavilion shallbe uuder th4 dir4otion**and** oontrol of the HO8pitfll Board, as now or hemw%er or6snleed,Of the John Scaly Hospital of Qslveeton,TOma.

"lfIZC3~: ApprOpri8totablet8vlth the -4 Of said **PiVIllOIb** a8 herein glv#n, in8Oribedthereon shall be kept increrted:~in the walls theroof,88 8hall be &oaIgnated by Bald Fdundationand **Said muno**  **shall** also be plaoed on said building In 8om4 suitablemanner to be detera&ned**by acid**  Foundation.

"THRRTIEl'Rt

The said TRR SRALY & SMITH FOTJRDATIOR PQR THIS

JOBA SRAIX HOSPITAL shall **always** be knovn by th4t ntune sod ehallhave the charge and oontrol of all enlsrgeme&a, reD8Ir8and equipmentof 8al.d PavLllon 48 above

### 899

BOBORABLE Homer P. R&my, Plwsid%at* page 5

provided and shallhv% the pom~ee+~lon, management,eontrol and dl%bur%%ment of the f'und%

prmlded for said Perilion,end 8h811 hw% full power to Invest, zwtlnvent, coav%rtmoney Into property 0~ prop%rty.lnto mosey, to sell and aoavey any property,real or perronal, OF parts thereof,In order to oarry out the purpose and scoompliahthe objeots OS the t’ZIU)ts confided to it, acoomling to its beat jud@%mt.

“TWERTY-FIRST:As the raid the scaly and sreith Boundationfor the John Scaly Hospitalvas lnoorporated at my irmtanae,to b% ths reaQi%at of th% ohariteble devlrres

aad b%Quentah%r%inmade,it ia my vi11 and desir% tbat it8 BOsrd 0f~Directors shall always conslat of sevem (7) Dir%otorsand it is my vlll and **desire** that all vac~aole8hereartrr oocur~ in **said** Board &all be fU.l%dby the others of th% Board then in office aad that the body may thus be made self’-perpetuat- -5s.”

Tuo parpoclea

-4 at oaue appamat in tim wisl, First, it

vas not the intentionof the testatrixthat IA% R. Yarerley Smith Memorisl PavLlLonahmld b% direat%dand aontrolledby the Scaly and smith Fouadtktioa iOr the John Scaly HOspit81. seooad, it vas the lnteatloaof the teatatrlxthat th% Pavilion shouldb% diraated and aoatmlled by the gov%ming board **dimsating** and controllingthe John scaly Hospital. I?% muat decide if th% seoond lntaatioavas only if suoh governlagboard vae , aad rhould ooatlntae to be “the Board of Maaagars to be kaova a5 the John Scaly Eo6pltalBoard” or%atedby Bouae Bill 224, hot% of the 27th Leglalature, M&&Board of Managersvould ba in exiatenaeonly ISO long as the John Scaly Hospital shouldbe under lease from the Board of Begents of the Unlvereltyof fexau to the olty of Qalveuton.

Tt uamot admit of debate that th% tertatrlxdeclared paragmph 18 of her vlll in the recognitionthat the particular board controllZr@the John Scalp Hospital at the tlmeof the execution of th% vi11 vaa subject to mne change, and might be ohangedr “as nov or hereafterorgaaimed.~ ia unreaeoaablsto believe that this provleioavae intended to refer only to ahangesLn per-. aonneP~ ii so, it would oonstitutesurpluueage inammoh as the delegatloa of authorityto any board oontinuesirrsspeativeof changes la pereonnel.

Your letterpoint8 out that the vlll of Mrs. Smith vati executedoa 24aroh

10, 1936, and that Mrs. smith died on October 12, 1938. At the time of each of these events the lease of the John qealy.IIospltsl

to the olty of Galvestonby the Board of Regents ofHonorableHomer p. Rainof,president, page **6**

the Universityvas ia existaace**vherewder** the John scaly Eospltal

vas belag eontrolledand smnsged by the Board of Wanagerspursuant to Rouse Bill 224 of the 27th Legislature. Thereafter,In Jauuary, 1941, thla leasevan dissolvedby mutual consent and the control and management of the John gealy Rospltal is sow, as it was prior to the originallease, exerolsedby ths Board of Regents of the Universityof Texas, the John Scaly Hospital itself being omsd by the gtate of Texas for the us% and benefit of the msdlual branch of the Ualversltyof Texas.

We shall first reviev the eases in Texas upon the aonstruotlonof VIllS. As early as the year 1858 It vas deal&redby the Bupreme Court of this State in Bell Qounty VII. Alsxaader, 22 Tex. **351x**

'It 1s a f&liar dootrlno, that in the ooastruotion of a will, the Intentionof the testator Is the rirst and great objeot of inauIryland the law vi11 not suffer the Intentionto be defeated,merely beoause the testatorhas not 'olothed his ideas In teohniqal laagusge

.*

In Xemllen vs. sinms, **37** 9. I?. (26) 141, Justloe Orits of the fjupr%m%

Oourt, deolar%dt

"Thereare no **aribitrary** or unbendingmles Iu the oonstruetlonof a will, as no two wills are In all ddtalls alike. La oonstruinga will form should be subordSnat%to substame, and If the testatorc'r intentionoan be asoertained,from a reading of the vhole will, such Intentionaunt be given effect,howe:oer Informal the laoguagbmay be,, **40 oyo.**  **p. ,1396.** 

Were the testator'sIntention Is manifest, from the aontextof the ~111 and eurroundlngairoumstanoes, but Is obscuredby aa lnacourate mode of expressloa, the languagevi11 b% subordinstedto the Intention, and ln order to oarry out the Intentionof the will the oourt will, so far as pos%lbl%,depalrt from the strict words, and read a word or phrase in a %ens% diff%rSnt from that vhiah la ordinarilyattributed to it, and for such purposemay &ange the language of the ~111, such aa r%jeatIngsuperfluous vo+s, or restricting theQI In their application.% l %HonorableHomer P. l&biney, President,Page 7

It vail said by the Supreme Oourt thro 8, the ocnaissIoa of Appeals in Johnson vs. Goldstein,215 8. W.

“In construinga will, the s&In object 1s to as**certain** the Intentionof the test&tar.% l l The smIn scheme or plan of the testator Is always regarded as a safe orlter~anin arrivingat his purpose. %%%”

The opinion In Clevelandva. Cleveland,83 wx. 445, by the Supreme Court, reads l.n part as follows

t

%hlle It Is true that par01 tsstImenyis not adnlsslbls to **vary or**  coatradfctthe terms of the will

or to supply that whloh hsr been omitted,**yet, if**  the meaalag of the vords used, read in oonnootion with other parts of the lnstrum%at, be doubtful,’

the surrounding olrcuwteaaes may be oonslderedto throw light. upon the matter and enable the oourb to **arrive** at vh&t the maker of the instrumentintendedby the
use of the lsnguageunder oonsIder8tloa. Bunt vs. White, 24 **Tex,** 652.”

Jones’ Ub&wn Heirs vs. Doraheiter,224 8. W. 596 (vrlt dlstissed): ‘: :

’ * e * These text-writers, hovever, agbee in deolarlng that the csrdirul’ rule in th% oonstruotlon of wills Is that the plalx~intentof the t%stator.as evincedby the language **of** hts~*ll must prevail if that intentmay be oarrled tdta ~effeot without vlolst-. Ing some deepar prinolpleof’publiopollay **or** of statuta prohlbltionjthat this IntentionIs to be oolleoted from the whole till taken togeth%& and not from DDEtachedportions alOn6. As a part of~thl.8 rule it 1s said that In interpreting a vi11 the testatorfsgeneral
**and** controlling

purpose shouldbe regardedrather than any exalting or exulting Ideas whiah may have dlotated the terms of his ~111, and that the intent, **au** gathered from th8 whole will, overridesall t%&.nIaalrules whioh relate to the construotlonof vords.

“In applying the rule uhloh seeks to discover the teatator’sreal Intention,the language OS the vi11 shouldbe taken, 80 far as may be aaoordlag to theffonorable Homer P. i?siney,

Presideat,Page 8

teatatop’sovn sltustloaand surroundIng8, bw8use
as the oourts have observed,the langu8ge OS the ~111 la not 8 ualversal interpretation, **but** they are eqwlly supposed to speak the aenee of the teatator,8nd his gener81 intentmuat be gathered,not merely from the languageused in the ~111, but must be t&en in coaneatloawith his person81 envI.roament.”

V+afrd vs. Wnfree, 139 3. Y. 361

?Uheit the waaIag oi.thevords wed la a vlX1 is smblguous,the court, in ordsr to arrive **at** the %ntentlon of the~testator, must be put as near as m8y be la his environment,

“staad la his ahoes, and look with his perapeotlvethroughhis eyes,’ and to enable the court to do thl.8

par01 evldame of th8 oandltlonsand aIroumstancea

surroundbg the parties and the exeoutlon of then inatmnnentis always 8dmlsalble. Poet v. Bailv&p .Co.,

70 Tex. 527, 8 9. if.2033 Weller va. Uellm, 22 Tex, Civ. Apph 247, 54 9. Y. 6524 Clark r.:Cattron, 23 Tex. Glv. **App.** 5l* 56 S. W. 100.

It has been a&Id by out Supremi Court “th8t a psrtIoul8r oonatruetion

of vords, althoughmomevh8tvarIant.f’rom theirmore aatur8l and obvious Import,may be strengthened by refereaoo to extraeaous’

&wumst8n0ea.’ **H8wra** vs. **poote,** 64 Tax. 22.

~‘The oourt sq l8y arid8 teohnloalWeu-8nd use otily aommott same. Lindsey vs. Rose, 175 s.'W, 8298 Tend&k VII.

Evetta, 38 **Tex+** 275;
OWt8inly **a** phrase shouldnot be given CL,construot$on which would defeat the Intentionof the teatatpb. Johnston vs. Beyes, 183 5,.

If.7; Bloah,va.Woellert, 90 S. y.(2d) 653; clereland vs. Cleveland,suprat'ltuebn va. Bremer, X32 9. If.. (26) ,295.
,‘phs oaaea ars’iegion

vhIcli snno~oe the above principles. We mention as likewiseappropriatethe t MoJuakln va. RepublIaHation8lBank of Dollaa, 131 8. 1085; Lightfoot

va. PoIndexter,199 9. Y. l152; Jones va. (x11.)1Eollawayvs. 119 x. E. 324 Institute,87 At1. 269 (Md,ji In re Howlaadia $8t8te, 198 8. 'y.SUPPI 094.

Of course,no two villa am alike in all respeots. That of Mrs. 8mlth, in the partlculara under consideration, Is unlikeBomwsble 

### Hmer P. Balmy, ~PresIdent, Page 

### 9

**8ay** yet **oanatx-ued by**  **the oourtr**  **of Tmsa,**  **We** are therefore **la ths**  positS.on

d%rorlE%dby th% oceplasim of App%sls in Esstlng vs. J0tle8, a5 8. VI 9591

‘Ue hwe not tound uay **deelalat** by our Supreme Court vhere the faots vere so aloselyua8logoucas to render it eontritlllsg lxxthe prsseat sase, and ve are the~ro~ left to resolrt to ganeml **prQbolple8** Bald dowaby our **eeurte** in hrrlving at a ppopea maalwloa.'

Resah&@ s propem oea63usloarequiressn mldemtaadIag 0r the olruttw

tutuor surmuudlng the eaceaution of the v&Xl by Hra. Smith. Vu must leek with her penpeatlwe throughher eyes. *

Mrs. Jennle Be8ly smith Pas the d8ughtar of Hr. Joha &sly, SOP,,

the dater of Mr. Joba eealy; Jr., snd the wife of **Kc. R.**  **Vaverley Rwtth.**  The oa&&ml John scaly Roapltalvas oonstruotadby the XstWB of Mr. John **Scaly,** SF., I&&Odied **August** 29, 1884. Xt vss donsted fop a tvo-foldpurpoaer to piwvlde a hoapltsl for the inalgent 8Iok o? the olty **8ad** to provide a hospital for the benefft of the tnedloul broncrb o? the vhlveraityof Pexea In the ewat of Its est8bliahment at @blvoston. The grsnt vaa to the alty o? t3alveston v%th dIrectloosto tmns~er the hospftel to the Unlwaslty $8 domed proper by the olty. Subsequentlythe medfcel~brsnah

.*a8eatabliahed:at GtQwston and the hoapltslvea traasfermd to the sttste of T-8 for the use and benefit et the Ualver6ltyof Tours .tobe used for end la eomeotion v%th the med168l br-saoh

of the Walvewity.

2% f@egolng .oaourred io &888, Subsequentappmpx4stIoa bills by the Xisg%sLattwe aad olty owe68 e? the city of Qelveston reoogpiaedthe Mm Scaly ftospUx4 ae under the aontrol o? tha Bosrd 0f~Regentlr

of tha Vnfveraltyof Taxas. By a special&et approvedAprIl~X8; 1901, the Legfolstrrre amendedth% charter of th% oity o?~Qalv&atonte mathortie the lease a? the John &&sly Hospital to the aft? a? 6elveatonby the Board of Regents of the Unlveraity 8ad provided th8t “so long as the sass ls~‘und4r leesa fmm the &ate to lrhe

olty” th% hospital shall “bb under tha exalu?lvebont-1 of ‘the

BoSPd of Maasgem to b% lcawa as the Joha~R%alyHospIt+ Board. * Othar pertineotprovisianr of thls sot sra set out In your requestXett%rvhlah w% have quot%d above. Your letter also revleva the **history of**  **the original**  end **8ubseQusnt le.sses**  aublnstlng In th% aurr%nd%bsad,

osno%llstlon

of the last lease in Janusry, 1941, 88 a result of whbh the aontro3 and mansg%m%ntof the John Bealy Hoepltal reverted to the Board of Regents of the Tmlveraltyof Texas.

.Zionorablr Bambr P. Raioey, President,Page 10

fn r8g8, l&29, 1900, and 1901, prior to the exrcution of the above de8oribed le88e,Xr. John Saaly, Jr., and hir 8ibter, firs. ~+mnii gO81y tbJlith,O~ndsd 8ppl'oXiastely (~o,oOo.oOin IVP'SirlS t0 w John 8e81y HOlBpit81.In 1915 they aonmtruotedthe Yom8nt8 BO8plt81 **at 8**  cost of $l25,000.00 uid on X8y 31, 1915, exeouteda deed OS glft to the Board of Regent8 for the YOIPW(II Hospitaldlrvotlng that ths property "8h811be u8ed Sor ho8pit.81 purport'8

In oonMctiOn With the John Scaly HO8pit81 8 8 l under th8 direotiCWI

Of the BO8rd O? iiittM~~l'8 Of Bald John SsSly HOSpit& 8I
nov con8tltuted,

and their 8~00888or8.* l'h8 d8ed oontainedthe fOllOvingOXpI'S OOnditiOIl8t

"!l'ha 88td &U'Q&W't,f

8hall be used for horpikl .prpo8es in COCIMOtiOn **Vtth** the JOhlI

Setiy BOopit in tha City Of Galveeton,stat fT a th dlreotionof th8 BO8l'd Of #hU4e:8 O:x%d"iO~ Se& Earpita a8 now oormtltuted, and their auaoes8ors; and shall bs u8eb for PO other puFpO88,OrgUrpOSe8 vhetsoever.

"Zn th8 event raid prope&y, or 8ny portion thereOf, Sha11 8t w tti0.b. tied ?Or 83ly pUI908eUh8t80- **ever,** 8XOeptho8pitEbl purpOLIe8,

ti OOPneOtion

**With** the **John** Scaly RO8pit.d in the Oity Of **QSlVBlltO&** State Of Texae, undemthe dlraotion of the Board of Ranagera of. 88id Hospital, th8 title t0 til Of.th8 pZ'opOl!ty **hereby** oonveyed 8-11 1p80 'f8Ot0, 8&d immncrdiately,.l?OVert t0 and beoome the property of the Donors hereia,, the&a he-8

**or a8eign8,**  vithout any aotion on the part of baid Doqocs,
, theirheLn8 **or** 888ign8, 8nd Without the neoessity of their'mak%ng

**an** entry upon b61d property, **or** deolaring 8:fO~ffdt~~e."

It 18 8~Z'Oht fZ'ti thb **OOhVt~8llOO** (biP8. &WliO ie81y gmlth belngone of the g2V&ntOr8) that the~lianraa~8

Eoapital ehould ~, be 

### under the oontrol,and dlreation of the governingbdard.of the John Scaly Iiospltsl; It could not be selrlously ooatendedthat the gr8nt repreclented

by suoh'coxiveyanoe would lepae beoauee of the c&%nOellatiOn

Of ths sforeaentloned lea8e8~8Ild

the lTVtAlX%

Qf OOntl'Ol ;f ;~m~hn Sa81y Ziospital to the Board of Regenta of the ~Dhivemstty

.

In 

### 1916Mr. John Scaly, Jr., expended the 8wa of $270,000.- 00 in remodelingand mfumiahS.ng the maIn hoapltsl.EonorabloHomer P. RaLnsy, Presideat,Page 11

The **3081y** 8lld

8lEktd.L Fotmdatlon for the John Scaly RO8pit81 w88 oharter8d

under the lava of the Stat8 of Texar on laroh 10, 1922, 88 8 oharitablecorporation. The original inao~orstors wer8 -8. Jennie Scaly Smith,Xr. John Seedy, Jr., and #II?. B. Wavorlsy f!&th. Thsreefter Mr. **John** Scaly, Jr., 8nd -8. Jmnle Se81y Smith aonveyedto the **Foumlation** aortain lot8 Sdjoining the hospitalpropertler and prior to the **death of**  **#r.** Se81y the Scaly and Smith f=i11e8 oontributedto the FoUndatlon the 8lV8 of 

### $gw,o63,01.

Itr. 3ohn 8ealr,

Jr., died 

### February

19, 1926. Under 

### hi8 till one-halfOf hi8 F88id\uly 08t8tew88 18ft tiedlately t0 the Scaly and Smith Foundationfor the John Scaly Hoapltal for the aupport,

m8iPten8n00,opel'8tiOll and repair of the John Scaly RO8pi-, tal 

### or for the oonstruotiau of additionalbuilding8to be operated ln oonnectlan

werewith.

~By deed dated April 21, 

### 1938,prior to the death of Xra. 3e~le mmly smith, the Seaiy and Smith Foundation for the John
**SO817 RO8pit8i**  **oonveyed** to the State Of TOXBB, aoting by and through the **&%8FdOf** Regent8 Of th0 **VhiWWbit** 

### 8, 9, 10, Xl, 12, 

### 13 and 

### 14. In Blook to**Of 58X8l4,**  **UtFi 1,**  **2,** 

### 3, 8,

in Blook 

### 548, la the aity of Oslvestcn. 

### 8, aad Lot8 1 to 7, fnoluuaive,

**8** Dlreotor of the~FoundatLon, mB. hltIi8 **i3881y** &pith **W88** The **deed MpM88nted**  **an** investmentof $1,250,000.00

and lnoluded the'out-patient ollnio, the nev ChUdI'ea'8 horrpttal

8nd the new xmr8e18 home.

k-86 Jennle S88lY Smith was a member of the Board of NaMgOr8 Of the John S881y 308p1t81,under **the Legi818tiV8**  **8at re**  femed to, **at** the time of her death, b&v- been appoZnt8d thereto by the Board Of Regenta of the t7niveraity of Texas.

The teachinghospital @f the mMlca1 branoh **of** the Unlversity Of **Texa~e** ths :Jobn **Seal7** RO8pita1 **and the**  **Woman ’** **8** ftOsptt81, representthe liberalbenefloenoeof Xrs. Jennle Scaly Smith and
**other member8**  of the Seely family. while th8 phllantbroplea **of** the familyvere **direated** to the aohlevement**of** tvo purpotse8, the care of the indigentsiok of Galveston **and** the OItn8rship by the state of the propertieses a teachinghospital for the amdiosl branch of 

### theUniver8ity,

underlyingall the grants snd dOxMi%On8 is the faotthat tiey were made to the State of Texas aoting by and through the Board of Regents of the Dhiversity of Texas. They were nmde in the knowledgeand reoognitlonthat the Board of RegentaVW the repo8L tory of the power of oontroland msmagementappertainingto the medloal bran& **of** the Universityand the John **Scalp** Roepital In oonneetion therevlth. Bone of the@mta **were** to the stat8of Texa~88, or toEonorebleHomer **P.** Rainey, President,Page 12

the medlc81 branoh of the **Uhivsrelty** of Teu86, or to the Board of Regents, only for 80 long **88** the **Jobn** Scaly Eorpft81 should **be**
**under** the control **and** management of the Board of **HanagerB** On8t8d by PXouse

Bill Ho, 224 of the 27th Legl8latum.

It la thereforeentirelymaeonablo to believe, in the 8bsellOO

Of 8 0108rlyeXpre888d intent t0 the 00utr8v, th8t wt. Jeanie Scaly Sulth intended In her will that,theadditional**dona** tiOn8 to the John $881y Hospital ehould,be,in OoUfOXlUity vith prior 8ot8 Of henelf and her f-y. And vhen we 8U8lyz8 th8 will of gra. &~%th 8uoh intentionsare obvioumr flrat, that tha **R.** liaverley

Smith Wemorlrl **P8vllloa** should be aon8trUoted and equippedby the scaly 8nd Smith Foundation for the John se8ly hoepit81~BOOOnd, that **the** PaVilion should be ooatrolledcad man-: aged by the **mai8** board ooatrolling and muaging the John Sealy Bospltal. We do not believe that the m8nlfelt intentionof **Wrr.** Smith ahouldbe defeatedbOc8U88 of a~ asserted obsoure or inaoOUX'8t8 mode of expre~alon.

The p8rticular**board in**  oontroi of the John **S881y flosplt**  81 at the time of **the ~8xeoution**  of the vlll, and of the death of the teststrix;

was the Board of **Managers omrted**  under **Hous** Bill **224** of the 27th Legl818ture. %'htS board MU t0 be in 8Xi8tOuO8 only so long 88,.thO John Be8ly hospitalwas under lease from the atate to the city Of **QalVO8tOn.** BIB~&U88 Of her iatimde **hlOV1sdg8** of the institution arv%her~memberf&ip~upon the Board of lmagers, Hn. smith XfaE~fully COgnizMt of them fsats. sh8 recognizedin her will th8t **there** 

### might **be a**  **ahang** lath8 partioular bo8rd oontrOllbg the John SOSly Hespital. It ~i8 unressonablet0 **beli8V8** that HI%+ Smith h8d in-miad only 0h8ag~8 ia per8ouWl. .It i8 rea8OU8ble to **believe that**  Mrs. **SBIlth had**  **In** mind (L **uhange** in the particularboard controllingthe John Scaly Hospital, Her f~udamental **d88i2W ~811**  **that the**  **same** board managIng the John Scaly Hospital should also manage the Pavilionvblch wa8 to be oon8tmoted in oomeotion vi&It **and** vlLtoh, in the **OXCOOUtiOIl** of **it8 purpose,**  would aeoeessrily

be operated in oormeotlon with the main hospital. The uudesirability, in suah a situation
, of one board controlllug 8zkd man8g3ng the John Sealp Boapital snd anotherboard controlling and mauagiag the Pavlllon, is,apparent. Tb8t Hra. Smith did not intend such 8 result la oomp&telydemonstrated by the provfeloa pleo?ag the dlreotlonand oontrol of~the P8vlllon In the Hospital Board of the **John** Sealy Hoepitel 88 at that time ar eubsequently organiced.

Dndev the authoritiesvhlch **V8 have**  reviewed, the oouhta **of Texas**  will oonstrue the will of Mrs. Smith from Its four oorueraHonorableBozusr P. Rainsy, President,Page 13

and in the light of the per801& olroumstanoes mu’ro~d~ the testatrlx. Xn so **do-** the aonolu8lon will be reached, in m opinion, that the proper constrtkotlon la that the board oontrolllng and planaging

thm John ssaly Hospital,vhioh is at this time the Board of Flegentr of the University of Texna,vi11 po+ ebee, under the .will of Mrs. Jennis scaly &tit&, the right of the oontml and nement of the R. Uavsrley &n%th **Nemorlal** Pavilion **after** it8 oonrtruotion br the Scaly and smith **Found&** tion **for** the John Sesly Eorpital. suoh is the opinion or thsr department.