National Republican. (Washington City (D.C.)) 1872-1888, 1885-11-05
THE DOLPHIN TO BE DELIVERED
An Ainicnblc Agreement Arrived at Be-
tween Mcssrs whitney and HoacIl

An Amicablc Agreement Arrived at Be-
tween Messrs. whitney and Roach.
The Dolphin controversy has now been set
tied upon the basis of the subjoned articles of
agreement, except that the suretles are not
deemed TO have any right Of action, aud there.
fore could not sue, aud have been dropped.
The only other change Is that $4,000 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, 1t is said at the
Navy Department, Is in every way satisfactory
10th to the contractor and the government
The agreement entered into between the
parties Of the first part and the United States
by William &. Whitney party OF the second
THE AGREEMENT.
81. Possession Of the steamship Dolphin Is
transferred TO the Secretary OF the Navy, for
the United States with the right 10 take aud
fully vested in the United States but such
transfer shall not operate TO constitute an nc
centance under the alleged contract or affect
the consideration or adjudication of any qu1s.
tiOn of law or fact arising upon any claim or
defense now or hereinafter in controversy be.
| tween the parties, which shall be determined
as If such transfer had not been made.
-. Tho parties of tho first part, under such
an alleged contract. to prosecute an action
! ngainst the parties of the second pnrt tor the
| balance of the purchase money alleged to be
| due under said contract and for compensation
/ for additional work aud alterations made pur.
I suGnt TO the provisions Of the said alleged con-
/ tract.
| 'ln the event that lien shall be deter.
| mined TO exist in favor OF the United States
| upon faid vessel, or in the event that the gov
eminent shah be found entitled to any money
| judgment of reclamation recoverable from the
and IN n tbai event, TIC the said steomshiP shasi be
first applied to the satisfaction of said lien or
Judgment; and the value of said steamship at
| The time of such transfer for the purpose of
satisfying said lien. claim, or judgment, In lien
of being determined by judicial sale shall bo
found Jy the court upon proof to be advanced
by the respective parties; and for the purpose
| OF such determination, her value shall be
deemed to be the price specified for her in
Exhibit A plus amounts covered by orders
issued by the Secretary of the Navy for altcra-
tOns and additional work. minus whatever
sum, ifany,shGl be found 10y the court necessary
to Lave been expended In order to make said
ship, when transferred TO the government,
conform to ard represent a full performance
on the part Of the parties ofthe first part Of the
obligations binding upon them In the CON
struCtiOn thereof; and said steamship shall be
deemed TO have represented Mt the time of
such transfer to the Secretary OF the Navy
the amount thus determined in satisfaction OF
amy lien, claim, or demand which the govern
mCnt may maintain"
In connection with this agreement the fol.
lowing letter, written by Secretary Whitney on
Oct. !, is furnished as explanatory OF the action
taken:
''it is of profit to no one that she should lie,
/
dcrgoing deterioration. She represents either
a ship completed according to contract, which
should be accepted by the government
n USdnSIy yTur wSeh Inc or SnS rGpTGsI ba
lien for amounts largely In excess of auy sum
likely TO be realized from an enforcement
thereof In this latter event the ship must an
swCr to the government to whatever extent she
will reach to pay. Having been built for q
naval vessel, she is of very doubtful market
value. In my Judgment she should come "a
the government leaving 1t to be settled by Ju
dicinl determination hereafter whether your
clnl m Is correct, that she should be accepted
under the contracts or the claim OF the goycrn
mcnt is correct, that she must answer for the
lien created by the moneys advanced IN the
course OF her construction. Neither of us should
object TO a speedy and fair settlement of the
questions ut issue by judicial dctermina
tion without unnecessary hardship. tc
either The important things, so far rs am
nble TO see, 10 be covered by stipulation, arc
that the transfer OF possession to the govern
mcnt shall not work nm acceptance under the
contract unless II Is judicially determined that
you are entitled TO compel such acceptance
BY instituting suit for the balance Of the pur
chase money unpaid that question can be speed
, ily determined: In that event, n judgment fol
the balance will settle the controversy. But II
, the event that the law and the facts should be
found otherwise, the transfer of the ships t
the government shall then be considered Il
have been in recognition of the right of thC
government to q. foreclosure of its lien iO
moneys advanced In the course of constrlc
tOn; and In lieu of the hardship which woult
result from n judicial sale of a vessel not buil
for mercantile purposes IA harsh manner o
lquidating the goyernments claim, can se'
no reason why the following should not be re
sorted to as a reasonable and Just disposition O
the question rs TO the value of the vessel 70
the purpose of satisfying the lien.
Her value as naval vessel shall be assumed
to be the contract price If she is found In al
respects up to tho requirements legally bind
ing upon you In her construction she Is takei
by thegoycrnment at that price; otherwise sh
Is taken at such less sum MS shall be found ncCcS
sary to be spent upon hcrto make her up In al
respects to such standard. In other words, tn
government takes her and we expedite a d.
termination by the court whether She is take
, and accepted MS for a valid and compete
contract, or In satisfaction oi the lien. and tn
method of determining her value Tor the pur
pose of the lien is agreed upon reasonably an
fairly. In all other respects the rights of tn
parties to be unaffected"