The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1873-05-29
The Stolen Bonds.

Our readers will remember that some time
since, information was given of the stealing
of forty-three bonds of the State of Texas,
of the denomination of one thousand dol
lars each. The facts in the case have never,
we believe, been publicly known, but as
they have been fully ascertained by the
committee in the House, we give them to
our readers:
In the fall of 1871, Gov Davis employed
Mr. c. W. Whitis, of this city, to take the
four hundred thousand dollars in bonds,
authorized to be issued by the Twelfth
Legislature, to New York to sell,them, and
contracted to pay Mr.. Whitis two and
one-half per cent. commission, when
the law only authorized him to
pay one per cent. In accordance
with this contract, MIR. Whitis proceeded to
New York, and disposed of portion of
the bonds at ninety cents on the dollar, and
deposited the remainder with the banking
house of J. Z. Condict & Co. Upon the
retnm Of Atr. Whitis to Austin, Mr.. Con-
dict came with him, and during his absence
from New York, Mr.. Geo. NJ. Vandcrlip,
an intimate business and social friend of Mr..
Condict, represented to the cashier of the
house of Condict & Co., that he had author
ity to withdraw forty-three of those bonds
for the purpose of negotiating loan on
time for the State. Upon this statement
the cashier delivered the forty-thrce bonds
to Vanderlip, and he hypOthecated portion
of them with, and secured q loan for him
self, from the Citizens Saving Bank of New
York, for ten thousand dollars, and the
balance he deposited with the Bowcry Ma
tiOnal Bank To secure loan to him
self of twenty thousand dollars, in
both of which banks he was diTec-
tor. When informed of this transac-
ton Mr.. COndict rcpudiatcd it. and stated
under oath that he gave no such authority
to Vanderlip. Governor Davis was in New
York at the time these facts were made
known, and he notified the parties inperson,
that the bonds were obtained under fraud,
and that the State would not pay them, and
caused advertisements to same effect to he
made in the New York papers. Thereupon
the New York Stock Exchange condemned
these forty-thrcc bonds, and declared them
not to be on the market. After this notice,
and the public act of the Stock Exchange,
the Citizens Saving Bank and the Bowery
National Bank sold the bonds to a banker
in Philadelphia, named Patton.
In the meantime, the agency Of Condict
had been revoked, and arrangement made
with Williams & Guion, and the balance of
tho bonds had been withdrawn from Condict
& Co.. and deposited with them, upon which
ionn was Hsga.i#te3. AEA :hey, William
& Guion, with full knowledge of all the
facts in the case, took up the forty-three
bonds thus fraudulently obtained by Van
derlip, and delivered in lieu of them, forty
three other Texas ten per cent. bonds that
had not been condemned, and which were
worth ninety cents on the Stock Exchange.
/ These facts are Substantiatcd by the alida-
Wits of c. W. Whitis, !. +. Condict and
the cashier of the banking h, Sc of J. f.
CoUdict & Co. 9Tl Williams : Cu.a. ..a,,
hold these bonds against the State. If
there is anything to he said on the other
side, we would like to hear it,