Evening journal., 1903-10-03
BY
BOND COMPANY
Levy Court Accepts 81, soo.Io
for Claims Against Ex-Tax
Collector Donahoe
TEMPORARY RESTRAINING ORDER
Wilmington Savings Fund Society Try
ing to Recover s5,2e7 Paid to Dona-
hoe After He Resigned as Adams
Tax Collector.

hoe After He Resigned as Adams
Tax Collector.
At a special meeting of the Levy
Court yesterday afternoon "a resolu-
tion was adopted accepting from the
American Bonding Company of Balti-
more the sum of S4,396.1y In full settle
ment OF all claims held by the county
against John l.. Donahoe as collector
OF the Adams tax on investments which
was declared unconstitutional by the
Superior Court.
The American Bonding Company
was surety for Donahoe as collector,
and by accepting the S4.396.19 the Levy
Court has received practically every
cent collected by Donahoe, as he pre-
viously turned into the county treasury
$4,000, making $7So619 in all
Restraining Order Served.
While Horace G. Knowles. counsel
Tor the Levy Court, and Philip l.. Car
rett resident agent and counsel for the
American Bonding Company. were in
the office of Prothonotary Speakman
annullng the judgments mat had been
entered against the bonds of Donahoe,
Deputy Sherin Harry ellis stepped up
to the attorneys and served ON Mr..
Garrett a temporary restraining order
that had been issued a short time be-
fore by Chancellor Nicholson, on appli-
cation of the Wilmington Savings Fund
/ Company
The order was directed against John
p. Donahoe. Philip l.. Garrett, the
American Bonding Company OF Balu-
more, and the individual members Of
the Levy Court.
Held Private Meeting.
The members Of the court held a
/ private meeting at noon yesterday TO
consider the proposition from Philip
l.. Garrett. agent of the Bonding Com
pany to settle with the county by pay.
ing S4,396 in lieu of all outstanding
claims the county had against Dona-
hoe. So far as the Levy Courtmen
could learn, this was all the money tina,
Donahoe had collected in office, but
had not turned over to the county.
! ponahoe collected $5.267 from the
! Wilmington Savings Fund Society AZ.
ter he resigned from the office of IA,
= collector. Believing that il would b.
I WISE undor the circumstances sine
J the Adams law had been declared un
a constitutional. the Levy Courtme
{ agreed with Mr.. Garrett to accep
S4S96 and thus cancel al the county
. claims and Judgments against Donahog
Before the settlement was made Nh
{ Knowles. representing the Levy Court
p he'd a conference with J. Ernest smith
counsel for the Savings Fund. which
. also had a claim of S5.267 against Don.
ahoe and which already had applied
for its restraining order.
Mr.. Smith Addresses Court.
Mr.. Smith was present al
the private session OF court
and protested against the Levy
Court settling With Donahoe on the
basis Of S4.390, when the Wilmington
Savings Fund Society had paid Dona
hoe S5,267 more than that amount
when Donahoe represented himself "a
be collecting the Adams tax. Mr. Smith
said that Donahoe acted at all times
under the purview of the Levy Court.
Resolution Adopted.
The court however decided that as
: Donahoe had resigned from Office when
he collected the money from the Saw
ings Fund Society. they were not enti-
T tied 70 that money from him, and they
would not hold the Bonding Company
responsible for It.
The order served by Mr. ellis wai
to restrain the American Bondin.
Company from disposing Of or payinl
TO the Levy Court S5.267 which ha,
. been collected from the Savings Fun,
. Society by Donahoe and had not beei
refunded by Donahoe When the re
1 straining order was served against M
Garrett however he had just pail
e S4,3g6.19 Of the amount to Mr.. Knowles
= so that all the Savings Fund Societ
e can tie M of the amount is SS69, whicl
! it eventually hopes 60 get.
j. Ernest Smith and Charles w
D Smith represent the Wilmington Saw
e ings Fund Society, and the bin Of com
q plant they filed with the Chancello
Y discloses a remarkable condition OF az
t fairs growing out of the tenure Of Don
e ahoe Of the Office of tax collector 70
e. the northern district.
d Now the fight Is between the VIII
mington Savings Fund Society and a.
s Bonding Company, Donohoe and MI
Garrett and Chancellor Nicholson Is &
be called upon to decide whether or no
the American Bonding Company hell
the S5267 in trust and il so whethe
the Wilmington Savings Fund Societ
. ~ lpt NNNiliDQ 10 al OF ldit bA Ahri
amount. 1t is litigation fraught wit
many fine legal questions. At the sam
;. time the Wilmington Savings Fund So
s ciety is In the position of paying 5.26
= 10 Donahoc. when the American Bond
4 ing Company is not on his bond, bu
4 the Savings Fund Society must look {
: the Bonding Company 70 refund th
: money collected by Donahoe. whic
was transferred to the Bonding Com
y pany. In other words the society de
= isires to know whether II is going TO g,
. its S5,267 back.