Dallas herald. [volume] (Dallas, Tex.) 1849-1873, 1867-10-05

of one hundred and fny.siX thou,
sand dollars, in Texas State Bonds,
or Treasury Warrants, in the event
they fniled to import, for the. use of
the Military Board, certain articles
of necessity specified in schedules,
between the parties, Tho Bonds
and coupons were taken by Mcssrs,
White & Chiles, and total failure
made TO introduce the articles, Ei.
forts were made by Gov. Hamilton,
to have settlement with Messrs,
White & Chiles, but without success.
These Bonds had been disposed of
to various parties, and at the time OF
my going into office, were being
paid at the U. S. Treasury. Protests
were filed against. tho payment, but
being notified that the State must
take affirmative action, or that tho
protest would be .disregared, / ad-
vised with the Attorney General,
and he at once went TO Washington,
to confer with Mr.. 'Epperson and
take every possible step to protect
the interests of the State. Having
filed new protests, in connection
with Mr.. Epporson, against the pay
ment of all the Texan Indemnity
Bonds, he found they would be paid
Notwithstanding. After consulta-
tion with eminent counsel, it was
deemed advisable to institute suit
by Injunction against the Secretary
of the Treasury, andal the parties
who held any Of the White & Chiles
Bonds. The suit was instituted
giving as q fee to counsel, onc-fourth
the amount recovered, and nothing
if they failed. TO this suit Messrs.
White &-Chiles were made defend
ants. / had to deposit about $3.50,
under the rules of Court, to secure
the costs in the case. Subsequent
to the institution of the suit, a COM
promise was effected with Messrs.
White & Chiles, whereby the State
secured $4,000 in currency, and
eight Of the u. S. Texan Indemnity
Bonds Con file in the Treasury for
81 900 specie each, and the release
of the claim Of Messrs. White 4
Chiles, on seventy fge of the Bonds
held in England, by Messrs. Droege
& Co.; in consideration for the mon
ey, bonds and release above men
toned, the State released all claim
on Messrs. White & CHI, IS and their
securities OH the bond specified, for
S156,OOO. There were about fifty
one Bonds, at the date Of, the insti-
tuition of the suit (Which bad passed
from the hands of. Messrs. White &
Chies to other parties, and which
had not been paid at the Trcasury)
which were not affected by the COM
promise with those gentlemen, and
depend on the result of the suit
Since the commencement Of the suit
the Secretary of the Treasury, not
regarding the protest of the State,
nor the tendency Of the litigation
caused thirty four Of the Bonds to
be paid, they with the coupons at
tached, amounting to about S37 ,25O.
The payment of the Bonds at the
time and under the circumstances,
was unexpected, and unjust to the
State.
8. Mr.. Pierce declined delivering
the four Bonds held by him. Pro
test was filed at the Treasury against
their payment. He seized and holds
said Bonds on account of a sum OF
money he claims as due him from
the Military Board, for services rem
dercd and monies advanced.
9. There were placed in the hands
of Mr.. E. B. Nichols, in the year
1868, the sum Of S12, ,450, of the cou-
pons, detached from the Indemnity
Bonds, while they were in tho State
Treasury, they were given TO his
charge to sell for account OF the
State. They were not sold during
the war, nor until the summer OF
1865, and were disposed of at par
for specie. A number ofintervicws
have been had with the agent of
Mr.. Nichols, but no satisfactory
conclusions arrived at. Theaccounts
of Mr.. Nichols with the State and
the Military boa:d, have not been
settled and it is sought on his pai '
to embrace the coupons, in the. set
tlement of his cotton, poroperty aud
other accounts. have not'dcemed
it proper to permit the charge
against him for the coupons to be
involved in the confusion Of the
other accounts, and have constantly
insisted that he should account to
the State for the coupons, as an in
dependent transaction, leaving his
other accounts to be settled accord
ing to their own merits to do this
he has failed up to the present time.
Messrs. Jno. NJ. Swisher& g. Co. are
charged with sl9,675 of coupons
from these Bonds. They do not'de.
ny the receipt of them, but claim
that they are held liable by Messrs.
Droege & Co, of England, for about
an equal amount on account of tile
State, and decline delivering said
coupons or their valueg until the
matters of controversy between the
State and Messrs. Droege { Co., is
finally adjusted. | have thought it
the more expeditions to wait for
said settlement, rather than resort
TO suit against Messrs1 Swishcr 4
Co, particularly so as the matters
with Messrs. Droege & Co, were in
train Of settlement. Messrs. Swisher
& Co, am assured will pay over
the sum due, as soon as the contro-
versy with Messy. Droegs & Co. is
closed.
All Of the q. S. 5 per cent. In
demnity Bonds, which belonged to
the State at the beginning Of the
war C634 in No. were disposed OF
during the war, and have been paid
at the Treasury Of the U. S, save
those mentioned herein. 1t is very