The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1876-05-04
srccIai Message OF the Cos ternor.
ExECvnrE OFFICE. STATE OF TEXAS,

ExECUTIvE OFFICE. STATE OF TEXAS,
AUSTIN. April 20, 1876.
Hon. r. B. Hubbard. President IF the SenGts:
SR-I nave the huuor to present here
vita for consideration of the honorabk
Legislature the report of Hon. d. G.. Gio-
dings, containing a detailed statement d
the settlement made by him with parties IN
England and Germany, holding adversely
To the Stare large nuGaher Of the five (5l
per cent. United States indemnity bonds
abstracted from the Treasury of :he Stat
during the haze civil war
~ The records OF this office disclose a his
tory of the efforts of nv predecessors 70,
the recovery of ibese bonds, commencing
with the sending by A. J. Hamilton, Pro
yisional Governor ia 1865, of Hon. NJ. C.
Hamilton 20 Europe for that purpose, the
subs' quent employment by Governor
Throckmortou of the Hon. Z H. Epper-
SON. with contingent fee of twenty-five
(25) per CeLt. OF the amount be might real
re for the State, and afterwards the en-
ployment by Governor Davis of Messrs r.
r. Merrick ana T. J. Durant, with a con
tiugeht fee Of twenty (20) per cent. of the
amount actually realized by them under iu-
dicial process. Under these different en-
ployments several suits were instituted and
prosecuted in the courts at Washington,
and the sum of $47, 325. 80, coin, WAS actu-
ally recovered and paid To George w. Pas
chal, then one of the attorneys for the
State. None of this money ever reached
the Treasury of the State, Judge Paschal
having paid to the firm of which X. T.
Merrick, Esq, is member, S14, GA 50, and
retained the balance as a fee. During the
ola MI bi,ah have flancnd ~
first effort was made for the recovery OF
these bonds not a dollar has ever been real
ized for the State until Col. Glidings went
to Europe and made the settlement detailed
in his repoit.
a statement from the Office of the Comp
troller showing the payment into the Treas
ury Of the amount reported paid by, Col.
Giddings Is herewith presented. The au.
thority under which Col. Giddings acted
was conferred by the Executive, in virtue
of the act of October 80, 1866, on this sub
ject, and in pursuance of the same act the
compensation for the services of Col. Gid
dingS, as well as for those of Messrs. r. T.
Merrick and +. }. Durant, cOunsellors and
attorneys, at Washington, was fixed and
paid. Col, Giddings was allowed and paid
$31, ,21G ~, and Messrs. Merrck & Du
rant, having heretofore been paid ON the
same general account SIG, 629 90, were al
lowed and paid an additional sum of $S000
Col. Glddings's fee was contingent upoL
his success, and all his expenses, reported
at $4,000, paid by himself. The receipts of
these gentlemen, being full acquittance OF
the State from al further responsibility fol
or on account of their services, were taken
in triplicatc, and are on file in the Execu.
tive and Comptroller's offices and in the
office OF the Treasurer, copy being here
with transmitted. Messrs Merrick s. Du-
rant having differed with me as to the prop.
er amount OF their compensation, it was left
to their choice to settle on the terms which
Il believed right or TO leave the matter to be
adjusted by the Legislature; they preferred
the former course, and the settlement was
accordingly made. A copy of a letter writ,
ten to those gentlemen, giving the reasons
Tor my action, is transmitted herewith fol
your information. My convictions are clear
that these gentlemen have been literally
paid for their services, while their receipts
ON file are perfect legal discharge to the
State. The fee pad Col. Giddings is
small fraction over nine per cent. on the
amount realized, and this, together with
the amount paid Messrs. MerIick & Durant
makes about twelve per cent. which it ha;
cost the State to place the money in hel
Treasury, as reported by Col. Giddings
The bonds. being due, were collected by
my instructions, and the gold converted
into currency ready for investment, it be
longing to the permanent school fund, ano
it being deemed advisable not to bring the
gold to Texas, when sale of it would nee
essarily have TO be made, and gold was
then bringing very large premium, as the
account OF sales in the report will show.
cannot close this report without express
ing the conviction that the State is indebte &c
to the prompt and vigorous action of Col
Giddings for the large amount of money
realized, and that her rights would mos
probably have been lost by limitation o.
rendered valueless by the expense of thei
prosecution had any other course been pur
sued than that adopted by him. .t
Twenty one of the Texus indemnity bond
belonging to the State are in the hands o
unknown parties, who have never presented
them for payment at the Treasury of th,
United States. The rights of the Stat,
have been protected as far as possible il
them by my predecessors in office by film,
notice of the States claim, and the Texa
delegation in Congress have been requested
to take such additional steps, if any be nee
aessary, rs viii ultimately secure the right
of the State. Very respectfully,
@'aN RICHARD COKE.