Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1885-11-12
rnn no1pnrr srrrnhMnnr.
Tho Text OF am Agreement satisfac'
tory to HOlh sides.


tory to both Sides.
WASHINGTON, Nov. Telegraphic in
formation has been received at the navy
department to-day that the Dolphin con-
troyersy has now been settled upon the
basis Of the subioined articles Of agree
ment, except that upon consideration the
sureties were not deemed to have any right
of action and therefore could not sue and
have been dropped. The only other
change is that $25, 900 is to be retained
from moneys coming due from other
transactions and held with the balance
unpaid ON the Dolphin contract until the
litigation is disposed of. This settlement
it is said at the navy department is in
every why satisfactory both to the con-
tractor and the government:
Agreement entered into this - OF Octo-
Der, 1885, between - parties OF the ilrst
part and the United States by William @.
Whitney part of the second part. Whereas,
the paper annexed thereto marked exhibit
A, purporting to be q contract for the
steamship Dolphin, was executed on the
23d day of July, 1888, rs by said paper ap-
pears, and whereas questions have arisen
between the parties thereto with reference
to the Same and the action Of the respective
parties Hereunder which questions are in
capable of determination without judicial
examination and decision IL is hereby
mutually agreed:
First. Possession OF the steamship Dol
phin Is transferred to the Secretary of the
Navy Tor the United States with the right to
take and deal with the same MS II the title
thereto were fully vested In tho United
States, but such transfer shall not operate
TO constitute an acceptance under the
alleged contract or affect the consideration
or adjudication OF any question of law or
fact arising upon any claim or defense now
or hereafter In controversy between the
parties, which shall be determined as II
such transfer had not been made.
Second. The parties OF the first part
under such IN alleged contract to prosecute
an action against the parties of the second
part for the balance Of the purchase money
alleged to be due on said contract and for
compensation for additional work and
alterations made pursuant to the provisions
OF thel said alleged contract, In tho event
that n lien shall be determined to exist In
favor of the United States upon SAID vessel
or in the event that the government shall be
found entitled to any money judgment or
reclamation recoverable from the parties of
the first part or either OF them, then, and
In that event, the said steamship shall be
first applied to the satisfaction Of said lien
or Judgment In lieu of being determined by
judicial sale shall be found by the court
respective parties and for the purpose of
such determination, her value shall DO
deemed to be tho price specified for her In
exhibit A plus amounts covered by orders
issued by the Secretary of tho Navy
for alterations and additional work
minus whatever sum, II any shall bo
found by the court necessary TO have been
expended In order TO make said ship, when
transferred to tho government conform to
and represent II full performance on the
part of the parties of tho first part of tho
obligations binding upon them In the con-
struction thereof, and said steamship shall
be deemed to have represented at the time
OF such transfer TO the Secretary OF the
Navy the amount thus d termined in sntis-
faction of any lien, claim or demand, which
the government may maintain.
In connection with this agreement the
following letter, previously written by
Secretary Whitney, is furnished as ex-
planatory of the action taken:
NAVY DEPARTMENT, WASHINGTON, Oct. /,
18S5-TO Messrs. John Roach, Leoi keiT
aud A. Il. Whitney-SIRs Having hereto
Tore communicated to your counsel the
views OF the department with reference to
what may reasonably be done by the gov
eminent In the matter of the steamship
Dolphin, now in accordance with his re-
quest embody the same for our consldera-
ton III THIS formal proposition:
1t is OF profit to no one thut she should
lie, rs mt present, unused, II constant eN-
pense undergoing deterioration. She repre-
sents other n ship completed according to
contract which should be accepted by the
government (Which is your clIim), or she
represents property upon which the
government has n lien for amounts largely
in excess OF any sum likely to be realized
from an enforcement thereof. In this latter
nVnnt tho Qhfn mi n nj IN La.
ment to whatever extent she will reach to
pay. Having been built for n naval vessel
she is of very doubtful market value.
In my Judgment she should come to the
government, leaving it to be settled by
judicial determination hereafter whether
your claim is correct, that she should be
| accepted under tho contract, or the claim
| of the government for the lien created by
tho moneys advanced in the course of her
| construction. Neither Of us should object
to speedy and fair settlement of the ques-
| tions Mt issue by judicial determination
without unnecessary hardship to either
The important things so far as am able
to see to be covered by stipulation are
that the transfer ofpossesslon to the govern
mont shall not work an acceptance under
/ the contract unless it Is judieialy deter
/ mined that you are entitled TO compel such
acceptance by instituting a suit for the bal
ance of tho purchase money unpaid. That
| uuestiOh citu De spebully ueJeImlleu. In
thFt event judgment for the balance will
settle the controversy. But in the event that
the law and the facts should be
| found otherwise tho transfer of the
| ship to tho government shnll then DO con-
| siderod to have been in recognition of the
right of the government to II foreclosure OF
Its lien for moneys advanced in the course
of construction and In lieu of the hardships
| which would result from judicial sale OF
| the vessel not built for mercantile purposes
| Ca harsh manner OF liquidating the govern.
mont's claims.)
| / cln sec no reason why the following
| should not DO rcsorted to as u reasonable
and just disposition Of the question as 10
the value of the vessel for the purpose OF
satisfying tho lien. Her value us Il naynl
Vessel shall be assumed to DO the contract
price. If she Is found in all respects up tC
the requirements legally binding upon YOU
In her construction she is taken by thu
government at that price, otherwise She is
taken ut such less sum as shall DO found
necessary to be spent upon her to make her
| up In all respects to such standard, In
other words, the government takes her
and we expedite u determination bS
the court whether she is taken and
accepted as for valid and completed con.
tract or In satisfaction of the lien and the
method Of determining her value for the
purpose Of the lien is agreed upon reason.
ably and fairly. In all other respects the
| rights of the parties to be unaffected. VERY
respectfully, W. @. WHITNEY,