The daily union. [volume] (Washington [D.C.]) 1845-1857, 1850-09-01

I
lain facts stated which show the runous contracts ipo
which Texas forced BY her necessities, and which
are worthy oil being noted as warning 40 fnaneigs IN
all tIne TO come The debts claimed by dotord Daw.
son originally amounted TO the OF S37oOl4 81 and
no more, to-wt; S900l4 81 10 Hoiord and his assoc
aes Tor Their steamer and S2S0OoO TO Dawson, &C. for
Their vessels The process by which these Two sums
SWELL the 10 S333054 90 and the other TO OF 900,
should be caution! Ii is thus explained IN note
Owing TO The failure OF the TO meet the de-
mand at maturity. double the in ten per cent bonds
were issued, according TO the previous agreement
Thus, S3700l4 50 is first doubled making $7l0029 s..
and bonds issued for this bearing ten per cent inter
est per annum The amount due on these londs al the
date OF the estimate had swelled 10 Sl,404, O5i 80
Sir, It is papabe that this whole business was IN The
beginning gambling transaction on the par Of Messrs
holford Dawson and their associates. They sold their
craft whether and sound or old and rote1
know not, al living price, no doubt IN the apprehension
that they were mourning great hazard II Texas proved
punelua $37004 81 was enough Ii Texas failed, they
must have ten per cent bonds double the amount Tor
their risk. Texas did fail paying the money, but she
doubled the debt by giving the bonds according 10 con-
tract Now sir instead OF feeling myself bound BY any
moral consideration to pay Messrs Holford Dawson
III 404 054 90 with such interest may have accrued
the LIST OF January, 1913, should feel as il was
swindlng my constituents 10 apply their money to any
such purpose.
But le this case pass The report gives the rate at
which each class OF liabilities were probably available TO
the government OF Texas par basis The first class
of liabilities, including the debt to the bank OF the United
States The debts 10 Holford and Co., and to Dawson &
Co.. certain audited drafts, and amount due Samuel
Swartwout and Others and the amount OF unaaded
claims, including interest the all OF which are
admitted TO have been available at par, according to the
sums expressed on the face OF the claims, amount to
$3,439,34 o. This is strange admissions after con-
ceding that the due Holford and Dawson were
doubled in the already slated As here find Mr.
Samuel Swariwout admitted creditor of Texas, aud
he is large deaulter. take the liberty OF suggesting
that il to pay the debts of Texas, should like to
set oil so much as he owes US IN payment OF what Texas
owes him.
Mr.. HOUSTON. If the gentleman will permit me, |
will explain that 10 him
Mr. HOUSTON. In 1889, | think it was there were
two Texan vessels OF which entered the port oil New
York for repairs They were, however unable 10
raise the money for the purpose when Samuel SwaT
wou with others, bera stepped forward and advanced
the amount required 10 release them from the condition IN
which they placed. The Texan government never
reimbursed them, because il unable 10 do so; but the
obligation has ever been recognised There has never
honest transaction taken place; and whatever re-
ecu0ns gentlemen may choose TO cast on HIS name IN
this Senate lake great pleasure IN assuring them that
while there is Texan who appreciates his liberty, or
associates recollection with any achievement OF Texas,
they will feel grateful TO him for the favor conferred
Mr. UNDERWOOD. | made no reflection on him.
II is my habit 10 reflect anybody merely made
the remark that he debtor to the United States
pay the debts OF Texas, we might make our claim
Mr. HOUSTON | would say that the claim was
long since, with other matters transferred TO his Creditors
Mr. UNDERWOOD, Then it cannot be done /
will proceed with the statement OF what the report
tains
The second class of liabilities is said to be composC
OF the ten per cent consolidated stock June III
1887, including interest and which is pot as hav-
log been available to the government at the rate OF one
third OF its nominal Thus scaling the liability
under this class and we have as the true SUN Texas ought
TO pay $3.50, 1863 81
The third class OF liabilities is composed of the ten per
cent stock created by OF February 5h 1910, and
the eight per cent stock, created by the act, IN
Guiding interest This is valued as having been avail
able al the rate oil thirty cents on the dollar and gives
hat and, mat nm IN hp maid
The fourth aud last class OF Liabilities is composed OF
certain audited drafts IN cculailon treasury notes, and
eight per cent bonds including interest," valued as hav
Ing been available TO the government at the rate OF iwen
ty-ive The dollar, leaving the which should
be considered as justly due 81 1877 500 IS.
Thus according 10 the report, the debts OF Texas, in
cluded within the second thrd and fourth classes OF her
liabilities, nomnally amount 10 the aggregate OF S7,0l0,
500 so; which, being scaled and reduced 10 the sums
than s2os 500 ~ Add to this the OF $780,,
1874 81, the amount OF Liabilities for which the report
admits the receipt Of value al par Notwithstanding the
doubling of the debts due Holford and Dawson and we
have - 52s 1875 10 as the true amount which the comp
troer to ackno Wedge ought to be paid.
The funding act Of June 7th, 1887 required the Secre
tsry OF the Treasury notify the creditors OF Texas 10
bring forward their claims by the LIST OF September fol-
lowing, and all claims produced which had passed the
audtorla department. were to be funded. The funding
OF the 5th of February, ls40 provided for funding
promssory notes which should be presented prior to the
Is of July, by issuing stock for them with interest
thereon, payable annually al the rate OF ten per cent
OF July, by issuing stock bearing an interest OF only
eight per per In tracing these acts OF Texas
do not nd any provision expressly requiring The eight
per cent bonds issued account oil the third loan OF
81 900, be surrendered aud certificates OF stock
issued for them. In the fourth class OF Liabilities
In the report OF the comptroller perceive thai eight per
bonds spoken OF as still outstanding and az
can reason for changing the character OF the eight
per bonds Tor which the duties on imports were
pledged suppose those outstanding eight per cent bonds
are those gwen under the third loan act which passed on
the 22d January 1889 II So MIR. Shaw the comptroller,
puts down these bonds having been available To the
government the rate OF twenty-five cents IN the dollar.
Thus these debts OF Texas being the last contracted IN.
der her laws authorizing borrowing Of money, and the
only debts for which her customs pledged are the
only debts favored by this BILL aud they TO be pad
according TO their nominal amount, with interest, al
though they contracted under circumstances which
enabled Texas realize than twenty hive cents
10 the dollar Fortunate aud happy crediorsl ihey
advance quarter, traction oil oOe quarter, gel BOND
Tor the unit bumbug Congress by talking OF moral obi,
gallons, and I'LL their pockets out OF the national treasury
But, this bill is decepous upon It's lace II provides
thai five millions OF The stock 10 be created Tor Iera:
shall not be issued until her creditors holding bonds o
which duties on imports were specially pledged shall
first file the treasury oil the United States releases o
all claim on account OF said bonds" Now, il may BIZ
inferred IRON this that these bonds will amount
about five millions OF doarr, when the truth ~ &C
cording 10 the laws OF Texas they cannot exceed
million exclusive OF interest. suppose the true amount
sos 500, being the third item in The table oil The do
nestle debt. We thus appear before the public as II We
Texas when, in truth, are providing 10 pay the eas
meTitofous OF her creditors those who shaved the deep
est according 10 her comptroller, ess than two millions
when the interest al the rate OF eight per cent pei
annum is added TO the principal We thus dssppolnt III,
largest and most meriofous portion OF the creditors