Evening journal., 1889-08-01
HOW IT WAS SETTLED.
Delaware State Hospital for
the Insane.
WAS THE ACT UNCONSTITUTIONAL
The Predicament in Which the Trustees
ofthe Poor and the Trustees of the Insane
Hospital Pound Themselves, and How
They Got Out of IL.

ofthe Poor aud the Trustees of the Insane
Hospital Pound Themselves, and How
They Got Out Of 1t.
The Trustees Of the Poor were a sur
prised set of men when Deputy Judge
Lyman, Willard Salisbury, Esq, and
StateTreasurer William Herbert appeared
before them at the beginning Of yester-
days meeting and said the Philadelphia
Savings Fund Society which had taken
the entire state loan of $4,000 for the
purchase of the Insane Asylum, demanded
the money back on the ground that the
act providing for the loan was unconsti-
tutional
State Treasurer Herbert received the
proceeds Of the loan, $40, 600, about July
20. It was'negotiated by Elliott, Johnson
& Co, of this city for the Philadelphia
Savings Fund Society at a rate of 81 per
cent. Elliott. johnson & Company agreed to /
take the bonds for the Philadelphia |
Savings Fund Society, on condition |
that they were legally issued |
But as stated ia yesterdays |
EVENING JOURNAL their counsel has |
rendered an opinion that they We're not |
legally issued. and as they can take legal |
steps TO restrain the state treasurer from
paving the money out of bis hands, they
were masters of the situation The bonds
bear a rate of interest of 3i per cent. one
so low that any question OF their legality
makes it impossible to negotiate them.
The ground Of illegality hangs on the
question, whether or not the act author
izing the issue Of the bonds was a bill to
raise revenue According to the state
constitution, such bills must originate in
the House. not the Senate, where this
particular bin did originate The
bill authorizing the purchase
of the Insane Asylum is a
separate act, ana it is correct in every
particular. On these grounds Deputy
| Judge Lyman, Willard Salisbury, ESQ,
who represented the state, and State
Treasurer Herbert, maintained that the
bill was not one to raise revenue, but
that it simply provided for the payment
of a debt contracted by the state
Several members of the bar hold a like
opinion and Of those who had expressed
an opinion Senator Higgins stands alone
in believing it TO be revenue bill
A Plan Proposed.
After presenting the case to the Trus-
tees Of the Poor, Messrs. Lyman Sauls-
bury, Herbert and Henry P. Scott Of El.
lott. johnson & Co, hurried over to the
insane hospital where the state trustees
were in session and unfolded the situa
tion to them. The lawyers and
I the state treasurer had arranged
! a safe plan out of the difficulty, which
was as follows: The act provided that
. the state treasurer should pay the pro
a ceeds of the loan to the trustees CT th'
! insane hospital. They in turn were t
4 pay it to the Trustees of the Poor an'
receive the deed for the property. Il
e order to follow the provisions Of the bill
h the lawyers proposed to hav
IS the trustees Of the insane hospital Civ
! the state treasurer receipt for tn
/. $40, 600 on receipt of the deed for th
Y hospital and receipt for the purchas
e money from the Trustees of the Poor
N The state treasurer was to pay the pre-
le ceeds OF the loan back to the Philadelphi
sr Savings Fund Society, and receiving tn
g. bonds would transfer them to th
Trustees of the Poor, who woul
hold them as security against tn
state until the next session of the Leg
le islature, which would issue new bond
r to take them up. State Treasurer Herber
he would pay the interest until that time
t. amounting to So, $50, to the Trustee
he of the Poor, who would thus be this
50 amount in by the arrangement.
ID After the lawyers had explained th
1f plan to the Trustees of the Insane Hos
al pital, the board passed the resolutio
of stating that on receipt of the deed and
Id receipt for the purchase money from th
m Trustees of the Poor they woul
&c give the state treasurer receiE
Ih for the proceeds Of the loan. Arme
s- with this the lawyers returned to ii
s. almshouse. The Trustees Of the POI
y, were busy opening bids for supplies.
Of soon they were through Messrs. Saul
II, bury and Lyman, stated what actiC
e, the Truss lees of the Poor had take
d. and explained the plan arranged
H. State Treasurer Herbert said he wou
IT, guarantee to pay the interest on Il
'e, bonds until the next Legislature me
IT, When Mr.. Baldwin expressed some dou
er of Legislature elected two years fro
y. now making matters right, Mr.. Herbe
at said he had the fullest faith in the stat
ey When he was in New York, looking
i'll bankers to take the bonds, the mo
st prominent there told him shat thi
IN would prefer the due bills Of Delawa
to the bonds Of some other states.
The Resolutions.
eb Then the following resolution prepar
81 by Mr. salisbury, was introduced:
Whereas, II is necessary to ful
las carry out the provisions of an act pass
Ike st the last General Assembly providi
IO5 for state asylum for the insane th
at the money arising from the sale Of I
said asylum should be invested at lea
temporarily. in the bonds Of the State
ma Delaware, directed to be issued by I
act Of April 90, 1SS9 And
eed Whereas, The Board Of Trustees Of I
are Poor have full faith in the securities
to the State Of Delaware, though there m
rn- be some technical Irregularities therei
III therefore
cts Resolved, That the delivery Of I
the deed for the state asylum for the inss
ow is directed to be made unto the board
his trustees Of the state asylum for the
an sane and receipt be given to them
to the sum Of $75 900, upon the delivery
ins to this board Of bonds of the State
by Delaware to the amount OF $40, 900,
sued under the act Of 1889, whish Dor
shall be deposited in some safe depo
company and a receipt therefor deliver
has TO this board.
in Mr.. Nowland wsxed eloquent as
expressed his confidence in the credit
Is the state, and others expatiated on
,sh. pride Of state they possessed.
Baldwin, however, said he had as mi
~ state pride as any one but still he oppo
. the resolution.
W A viva vOce vote was taken and
looked as if the resolution had been {
ton ried, but the yeas and nays were cal
IAN for and it was lost by the following vc
a. IN.aaN