OFFICE OF THE A-ITORNEY GENERAL OF TEXAS 

AUSTIN 

Honorable BCQU~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..Waverlap Smith 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 

execution of the ~111, ths John Scaly Hospital was 

~~%,dor th4 vlll oi 

n \ f this doparbnont upon 

>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 L4girlature approved 

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

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

a8 follovs: 

"*Thk hospital 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 hereinafter provldod, 

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 selsot4d from aald 

Board of Coinml88Ionor4, the member4 40 84looted tb be 

the CommI88Ion4r of Finrrioe & Rav4nu4 4nd Comml88Ione~ 

of Strost8 and dlleys., etoil tvo to bo nmwd QP eelected by the Board of Regont.8 of the Univer8Ity of the 

State, and the fifth member to be namd OP selooted by 

these four, provided, hovever, that all members of said 

John Scaly Hospital Baard 4ball.be resident8 of the City. 

of Galveston, and provided further that ln oa8o a majority of said four cannot agree "pan a fifth, then fifth 

member sh411 be nslaed or dtielgnated by the Prarldsnt of 

the Board of Commle8lon4r8~. (W. XL C4mm4ls Laws, page. 

121, Sp4cIEilLswa or 1901.)’ 

~"Follovlng ihi $seage of this Acti the'Bo&d of 

Regonta'of the Ijnlvorsitg of Texas oxeouted 8 lease to 

the City of Galveston ooverlnp,the property knovn a8 the 

John Scaly Hoapltal of Qalverston. 

~?!h&eafter, on Way 9, 1913, the Board of Regent8 

of the University of Texas agaIn leased the preacL808 to 

the City of Galveston Por 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. 
Honorable Romor 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 provisions o.f the40 leases ,snd during 

j&o time-the s8me wor4 in forae and effwt, the John 

Qsaly Hoepita vaa under the oontrol snd management of 

the Board 0s Hensgera 0s theJohn Scaly EOSpital. 

: .?Ii-&nuary,-1941,'the lart nontiowd leas4 ~48 eurrendered~and 04no4114d for tha X?lty or Oalveaton, and 

th4 pPOpOrty 0018pP~s~ ths John Saaly Bo8pltal van returned.to the ROard of Regents ~f,the Univernlty of Texas, the property being owned by the Stat4 of Texas for 

the use and-benefit of the medical branch of, th4 UnlvorSity Of ,TeX48. lphs City of Qalvestim hwhad no fwthor 

right 4r lntereit inrth4 opePation.of said hospital, but 

said hospital ha4 been under.the managerment snd oontPo1 

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

a?leas4 advia 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 control and 

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 dIrectSOn end 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' pertinent provIsIon 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 

, 
Honorable Ecmer 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 Foundation with that und4ratandfng. Said building 

ah4ll be ussd as a private and semi-private pevlllon 

for the use or patients vho oan pay fop all or part or 

their lmspIt&bl expenses but 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~e of suoh mount from this 

dOVi84 and Sequoath SOP the pUl'pO848 4pOOifi4d ill 8Ubdivislon A or ,+&%a. Olauao B a8 In th4 judgment 

Of said Fomdatlon lU4y bs n4~4884l'y UId proper, it 18 w 

wish that th4 zwawindsr ah411 oontimjo to be hold by 

said Foundstion in trU8t an a pemanent endovmont, th4 

lnmu4 fmm vhich shsll be aval.Lsblo, as noaoasary, for 

the pUl'pO848 Of keeping said buSl&lng in repair and i2pp,roVing it8 faOilitie8j 411 SU?DblB inUoPle to,be appli4d 

for tho~g+mal pUZ'~O84 of said Fomdation. To this end 

separate aoooUMa shall be kspt 9~s the ~peratzng 4Xp~848 

0s said .pavilion and 0s all r404ipta from operation and <~. 

f?OtS OtbO? 8OtU'O8B 8ll& 8lly balanoe OP be~aUO4~8 Of 8UOh ~' 

0XpBP848, OVe~-and abovs 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 shall be uuder 

th4 dir4otion and oontrol of the HO8pitfll Board, as now 

or hemw%er or6snleed, Of the John Scaly Hospital of 

Qslveeton, TOma. 

"lfIZC3~: ApprOpri8to tablet8 vlth the -4 Of 

said PiVIllOIb a8 herein glv#n, in8Oribed thereon shall 

be kept increrted:~in the walls theroof, 88 8hall be &oaIgnated by Bald Fdundation and Said muno shall also be 

plaoed on said building In 8om4 suitable manner 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 ehall have the charge and oontrol of all enlsrgeme&a, reD8Ir8 and equipment of 8al.d PavLllon 48 above 
899 

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

provided and shall hv% 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%rt money 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 

scoompliah the objeots OS the t’ZIU)ts confided to it, 

acoomling to its beat jud@%mt. 

“TWERTY-FIRST: As the raid the scaly and sreith 

Boundation for the John Scaly Hospital vas lnoorporated 

at my irmtanae, to b% ths reaQi%at of th% ohariteble 

devlrres aad b%Quenta h%r%inmade, it ia my vi11 and desir% tbat it8 BOsrd 0f~Directors shall always conslat 

of sevem (7) Dir%otors and it is my vlll and desire 

that all vac~aole8 hereartrr oocur~ in said Board 

&all be fU.l%d by 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 intention of the testatrix that IA% R. Yarerley Smith 

Memorisl PavLlLon ahmld b% direat%d and aontrolled by the Scaly 

and smith Fouadtktioa iOr the John Scaly HOspit81. seooad, it vas 

the lnteatloa of the teatatrlx that th% Pavilion should b% diraated 

and aoatmlled by the gov%ming board dimsating and controlling the 

John scaly Hospital. I?% muat decide if th% seoond lntaatioa vas 

only if suoh governlag board vae , aad rhould ooatlntae to be “the 

Board of Maaagars to be kaova a5 the John Scaly Eo6pltal Board” 

or%ated by Bouae Bill 224, hot% of the 27th Leglalature, M&&Board 

of Managers vould ba in exiatenae only ISO long as the John Scaly 

Hospital should be under lease from the Board of Begents of the 

Unlverelty of fexau to the olty of Qalveuton. 

Tt uamot admit of debate that th% tertatrlx declared 

paragmph 18 of her vlll in the recognition that 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 hereafter orgaaimed.~ ia unreaeoaabls to believe 

that this provleioa vae intended to refer only to ahanges Ln per-. 

aonneP~ ii so, it would oonstitute surpluueage inammoh as the delegatloa of authority to any board oontinues irrsspeative of changes 

la pereonnel. 

Your letter point8 out that the vlll of Mrs. Smith vati 

executed oa 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 Galveston by the Board of Regents of 
Honorable Homer p. Rainof, president, page 6 

the University vas ia existaace vherewder the John scaly Eospltal 

vas belag eontrolled and smnsged by the Board of Wanagers pursuant 

to Rouse Bill 224 of the 27th Legislature. Thereafter, In Jauuary, 

1941, thla lease van dissolved by mutual consent and the control 

and management of the John gealy Rospltal is sow, as it was prior 

to the original lease, exerolsed by ths Board of Regents of the 

University of Texas, the John Scaly Hospital itself being omsd by 

the gtate of Texas for the us% and benefit of the msdlual branch 

of the Ualverslty of Texas. 

We shall first reviev the eases in Texas upon the aonstruotlon of VIllS. As early as the year 1858 It vas deal&red by 

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 Intention of the testator Is the 

rirst and great objeot of inauIryl and the law vi11 

not suffer the Intention to be defeated, merely beoause 

the testator has 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 

"There are no aribitrary or unbending mles Iu 

the oonstruetlon of a will, as no two wills are In 

all ddtalls alike. La oonstruing a will form should 

be subordSnat% to substame, and If the testatorc'r 

intention oan be asoertained, from a reading of the 

vhole will, such Intention aunt be given effect, howe:oer Informal the laoguagb may be,, 40 oyo. p. ,1396. 

Were the testator's Intention Is manifest, from 

the aontext of the ~111 and eurroundlng airoumstanoes, 

but Is obscured by aa lnacourate mode of expressloa, 

the language vi11 b% subordinsted to the Intention, 

and ln order to oarry out the Intention of 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 ordinarily attributed to it, and 

for such purpose may &ange the language of the ~111, 

such aa r%jeatIng superfluous vo+s, or restricting 

theQI In their application. % l % 
Honorable Homer 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 construing a will, the s&In object 1s to ascertain the Intention of the test&tar. % l l The 

smIn scheme or plan of the testator Is always regarded as a safe orlter~an in arriving at his purpose. 

%%%” 

The opinion In Cleveland va. Cleveland, 83 wx. 445, by 

the Supreme Court, reads l.n part as follows t 

%hlle It Is true that par01 tsstImeny is not adnlsslbls to vary or coatradfct the 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 oonsldered to throw 

light. upon the matter and enable the oourb to arrive 

at vh&t the maker of the instrument intended by the 

use of the lsnguage under 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~intent of the t%stator.as 

evinced by the language of hts~*ll must prevail if 

that intent may be oarrled tdta ~effeot without vlolst-. 

Ing some deepar prinolple of’publio pollay or of statuta prohlbltionj that this Intention Is to be oolleoted from the whole till taken togeth%& and not from DDEtached portions alOn6. As a part of~thl.8 rule it 1s 

said that In interpreting a vi11 the testatorfs general 

and controlling purpose should be regarded rather 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, overrides all t%&.nIaal rules 

whioh relate to the construotlon of vords. 

“In applying the rule uhloh seeks to discover the 

teatator’s real Intention, the language OS the vi11 

should be taken, 80 far as may be aaoordlag to the 
ffonorable Homer P. i?siney, Presideat, Page 8 

teatatop’s ovn sltustloa and 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 intent muat be gathered, not merely from 

the language used in the ~111, but must be t&en in 

coaneatloa with his person81 envI.roament.” 

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

?Uheit the waaIag oi.the vords 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 perapeotlve through his eyes,’ and to enable the 

court to do thl.8 par01 evldame of th8 oandltlons and 

aIroumstancea surroundbg the parties and the exeoutlon 

of then inatmnnent is 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, although momevh8t varIant.f’rom their more 

aatur8l and obvious Import, may be strengthened by refereaoo to 

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

~‘The oourt sq l8y arid8 teohnloal Weu-8nd use 

otily aommott same. Lindsey vs. Rose, 175 s.'W, 8298 

Tend&k VII. Evetta, 38 Tex+ 275; 

OWt8inly a phrase should not 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 likewise appropriate the t MoJuakln va. 

RepublIa Hation8l Bank of Dollaa, 131 8. 1085; Lightfoot 

va. PoIndexter, 199 9. Y. l152; Jones va. 

(x11.)1 Eollaway vs. 

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 unlike 
Bomwsble Hmer P. Balmy, ~PresIdent, Page 9 

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

positS.on d%rorlE%d by 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 alosely ua8logoucas to 

render it eontritlllsg lxx the prsseat sase, and ve are 

the~ro~ left to resolrt to ganeml prQbolple8 Bald 

dowa by our eeurte in hrrlving at a ppopea maalwloa.' 

Resah&@ s propem oea63usloa requires sn mldemtaadIag 0r 

the olruttw tutuor surmuudlng the eaceaution of the v&Xl by Hra. 

Smith. Vu must leek with her penpeatlwe through her 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 Roapltal vas oonstruotad by the XstWB of Mr. John Scaly, SF., I&&O died August 29, 

1884. Xt vss donsted fop a tvo-fold purpoaer 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 vhlveraity of Pexea 

In the ewat of Its est8bliahment at @blvoston. The grsnt vaa to 

the alty o? t3alveston v%th dIrectloos to tmns~er the hospftel to 

the Unlwaslty $8 domed proper by the olty. Subsequently the 

medfcel ~brsnah .*a8 eatabliahed:at GtQwston and the hoapltsl vea 

traasfermd to the sttste of T-8 for the use and benefit et the 

Ualver6lty of Tours .to be used for end la eomeotion v%th the med168l br-saoh of the Walvewity. 

2% f@egolng .oaourred io &888, Subsequent appmpx4stIoa 

bills by the Xisg%sLattwe aad olty owe68 e? the city of Qelveston reoogpiaed the Mm Scaly ftospUx4 ae under the aontrol o? tha 

Bosrd 0f~Regentlr of tha Vnfveralty of Taxas. By a special &et approved AprIl~X8; 1901, the Legfolstrrre amended th% charter of th% 

oity o?~Qalv&aton te mathortie the lease a? the John &&sly Hospital 

to the aft? a? 6elveaton by 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?lve bont-1 of ‘the BoSPd of Maasgem to b% lcawa as the Joha~R%aly HospIt+ 

Board. * Othar pertineot provisianr of thls sot sra set out In your 

request Xett%r vhlah w% have quot%d above. Your letter also revleva 

the history of the original end 8ubseQusnt le.sses aublnstlng In th% 

aurr%nd%b sad, osno%llstlon of the last lease in Janusry, 1941, 88 a 

result of whbh the aontro3 and mansg%m%nt of the John Bealy Hoepltal reverted to the Board of Regents of the Tmlveralty of 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.oO in IVP'SirlS t0 w John 8e81y HOlBpit81. In 1915 they aonmtruoted the 

Yom8nt8 BO8plt81 at 8 cost of $l25,000.00 uid on X8y 31, 1915, 

exeouted a deed OS glft to the Board of Regent8 for the YOIPW(II 

Hospital dlrvotlng that ths property "8h811 be 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 oontained the 

fOllOving OXpI'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 

dlreotion of 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,Or gUrpOSe8 

vhetsoever. 

"Zn th8 event raid prope&y, or 8ny portion thereOf, Sha11 8t w tti0.b. tied ?Or 83ly pUI908e Uh8t80- 

ever, 8XOept ho8pitEbl 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, , 

their heLn8 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 governing bdard.of the 

John Scaly Iiospltsl; It could not be selrlously ooatended that 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 1916 Mr. John Scaly, Jr., expended the 8wa of $270,000.- 

00 in remodeling and mfumiahS.ng the maIn hoapltsl. 
Eonorablo Homer 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 oharitable corporation. 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 

aonveyed to the Foumlation aortain lot8 Sdjoining the hospital propertler and prior to the death of #r. Se81y the Scaly and Smith 

f=i11e8 oontributed to the FoUndatlon the 8lV8 of $gw,o63,01. 

Itr. 3ohn 8ealr, Jr., died February 19, 1926. Under hi8 

till one-half Of hi8 F88id\uly 08t8te w88 18ft tiedlately t0 the 

Scaly and Smith Foundation for the John Scaly Hoapltal for the 

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

tal or for the oonstruotiau of additional building8 to 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 investment of 

$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 refemed to, at the time of her death, b&v- been appoZnt8d thereto 

by the Board Of Regenta of the t7niveraity of Texas. 

The teaching hospital @f the mMlca1 branoh of the Unlversity Of Texa~e ths :Jobn Seal7 RO8pita1 and the Woman’8 ftOsptt81, 

represent the liberal benefloenoe of Xrs. Jennle Scaly Smith and 

other member8 of the Seely family. while th8 phllantbroplea of the 

family vere direated to the aohlevement of tvo purpotse8, the care 

of the indigent siok of Galveston and the OItn8rship by the state 

of the properties es a teaching hospital for the amdiosl branch of 

the Univer8ity, underlying all 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 

knowledge and reoognitlon that the Board of Regenta VW the repo8L 

tory of the power of oontrol and msmagement appertaining to the medloal bran& of the University and the John Scalp Roepital In oonneetion therevlth. Bone of the@mta were to the stat8of Texa~88, or to 
Eonoreble Homer 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 therefore entirely maeonablo to believe, in the 

8bsellOO Of 8 0108rly eXpre888d intent t0 the 00utr8v, th8t wt. 

Jeanie Scaly Sulth intended In her will that,the additional donatiOn8 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 intentions are obvioumr flrat, that tha 

R. liaverley Smith Wemorlrl P8vllloa should be aon8trUoted and 

equipped by the scaly 8nd Smith Foundation for the John se8ly 

hoepit81~ BOOOnd, that the PaVilion should be ooatrolled cad man-: 

aged by the mai8 board ooatrolling and muaging the John Sealy 

Bospltal. We do not believe that the m8nlfelt intention of Wrr. 

Smith ahould be defeated bOc8U88 of a~ asserted obsoure or inaoOUX'8t8 mode of expre~alon. 

The p8rticular board in oontroi of the John S881y flosplt81 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 hospital was 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 recognized in 

her will th8t there might be a ahang lath8 partioular bo8rd oontrOllbg the John SOSly Hespital. It ~i8 unressonable t0 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 

particular board controlling the John Scaly Hospital, Her f~udamental d88i2W ~811 that the same board managIng the John Scaly Hospital should also manage the Pavilion vblch 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 another board controlling 

and mauagiag the Pavlllon, is,apparent. Tb8t Hra. Smith did not 

intend such 8 result la oomp&tely demonstrated by the provfeloa 

pleo?ag the dlreotlon and oontrol of~the P8vlllon In the Hospital 

Board of the John Sealy Hoepitel 88 at that time ar eubsequently 

organiced. 

Dndev the authorities vhlch V8 have reviewed, the oouhta 

of Texas will oonstrue the will of Mrs. Smith from Its four ooruera 
Honorable Bozusr 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.