The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1876-05-04
TEXAS INDRmNIrY BONDS.

value of $3oO,0OO) were part of the SJ,-
900, 600 Indemnity paid To Texas by the /
United States as a settlement Jf the New /
Mexican controversy. A'few years bef5re |
the war Sc, 900, 600 of this fund (lncluding |
these 300) Of which much was said Wednss-
day 10 the Senate, were set apart TO the |
Permanent school fund, but amid che ex'gen-
ces of the civil war, the then State govern
ment sent John VI. Swisher to Europe with
these 300 bonds, with which to purchase
military supplies. Mr.. Swisher failed in
hls mission bat left the bonds in Europe,
some of them being sold and the whole Of
them complicated by serious litigation there.
Alter the war Governor Hamilton set up
a claim for the State 70 these bonds, and
dispatched Hon. VI. c. Hanifton 20 Europe
to effect their recovery. lie failed i'll his
mission after seven months of laborious
| effort. In 1866 the Legislature of Texas
! authorized the Governor To- appoint an
agent for the Safe with general authority
to take such other steps as he ght deem
necessary To secure these bonds to the State.
Under this authority Governor Throckmor-
ton appointed Hon. B. II. Epperson as State
agent, and fixed his compensation by con-
tract ~ twenty-five per cent. on the amount
he should recover. About a year after this
reconstruction came on and terminated Mr..
Epperson's employment. Governor Pease
coming into Office appointed Judge. George
| w. Paschal In place of Mr. Epperson nuder
similar contract, which appointment was
abrogated by Governor Davis in 1870, and
Thomas j. Durant and II. T. Merrlck were
substituted under a contract by which
they were to retain as compensation
twenty per cent. on the amount they
might recover under ju tcial process,
In the meanwhile salts hal been insti-
| tuted in the courts at Washington against
various parties, In soUn' of winch Judgment
was recovered for the State while in Others
the State failed to effect recovery. About
$47, 900 were realized from these suits,
but the State re ceived none of it, Messrs.
Durant and MerIick receiving nearly S17,-
900 of that sum as fee, aud Judge Pas
chal retaining the balance. The real hold
ers of the bonds i'll Europe were not made
parties to theIe suits, and they, together
with the bond 5, were beyond the jurisdic-
ton of the &C urts in which such suits were
instituted ....--. ----'.ss- 'l''.1
This was the situation when Governor |
Coke came into Office. Litigation mad been
prntracted for years with. no visible result
to the State, and recovery of her rights
seemed as far off as ever. Having exam
ined into the subject fully in the summer of
1874, and being impressed with the impor- |
tance of speedy action on the part of the
State if her rights were to be served Mt all,
tbc Governor requested of j. D. & d. G.
Giddings that they should undertake the
collection of these bonds which they agreed
TO do. These gentlemen entered at once
| upon the duty, and after repeated trips to
Washington aud New York. finding
that nothing could be effected in this coul-
try Col. Giddings determined to proceed to
Europe and take snch legal steps there as
might be necessary to effect the object OF
their appointment He sailed for. Europe
in the summer of 1876, ami after months of
negotiation with the holders of the bonds
in England and Germany, aud after con-
siderable outlay of money. on his part for
counsel fees and other expenses succeeded
in effecting a Sc ttlement with all the hold
ers by which the State recovered her full
rights in every particular. He. brought
back and paid into the treasurey $3.50, 600.
The result of his mission was surprising
success to every one. 1t was known before
he started that the claim of the State was
1 perhaps barred by Limitation, and the hole
ers of these bonds were determined in their
resolution to retain possession at all hazards
and by force of their wealth and influence
were noinsignificant contestants. The liti-
| cation at Washington had proved so bar
rep of results that the attorneys for the
State had practically abandoned all hope,
1 and had en3eavorcd to lobby bill through
4 Congress to authorize the treasur er of the
United States to pay to Texas the value OF
these bonds upon suitable Indemnity. The
| Messrs. Giddiugs, as well as the Governor.
were pressed by influential gentlemen 20
agree TO compromise upon the basis OF
/ $2l5, 900, but refused. The result shows
the wisdom of their action. ....... 4- 81
Under the manag eneDt of Governor Coke
4 this claim, which had fingered for eleven
years and had dcfied the ablest efforts OF
/ Others, has been collected and paid into
the treasury for less than one,half. the sum
stipulated TO be paid IN other contracts, to-
| WIT, for less than twelve per cent. The
\ Messrs. Gieidings undertook its colleciiou
for fee entirely contingent, and. received
Tor their services nine and three-fourths
per cent. This covered all the costs attend
ing It's collection, including an outlay of
more thaal $4,000 Iu their .parp. .... .si0rs'
Messrs Merfick and D,prant of their cwn
\ accord accepted the offer OF The Governor
who fixed their fee at $1,000 which in
addition to the amount before rsceiSed
nnkts their compensation aeptcNiriate
S21, 900 and rycripted in full to the State
for all demands. prefcrring to DO tins rather
thar submit their claims to this Legislature.
tAiai review of the transaction Ieleets
tue highest credit upon Cob G. ddings for
his skill aud energy, as wen upon Governor
Coke who may proudly lock upon it as
oas of the brightest achievements of his
successful administration. si7tt's
.---- gore
i Hox. JAMES WHITE, wife and daughter
and two servants, of Plymouth, England, !
isSin the c,ty and remains till tomorrow.
He is member of the British Parliament
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