The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-01-14
HOCC & ROBERTSON FEE
cuIberssa ofllclslIy Advises legislature d
TIE Matter.
RECOMMENDS the PAYMENT OF sssIl.s,
state Not Entitled - All % the
Money Appropriated ~ Con9ress.
Gives His Reasons.


70 the Senate and House OF Representa-
tives.
Executive once, Austin. January IA
II seems proper In view OF the gross mis-
representation OF the transaction that your
attention should be specially invited TO the
collection OF the balance OF the indemnity
due this state by the United States grow.
ing out OF the boundary controversy In
1860.
BY an act of the congress OF the United
States, approved June I. 1898, the sum Of
SOL. 1927 was appropriated to pay the
State OF Texas for the claim arising under
the acts OF congress approved September
.. 1850, aud February %, 1855. respective
~, which Will be more fully referred to
hereafter. and the entire amount WAS de-
posted !n the Stale treasury to account
of general revenue July 26, 1898, by United
States treasury sxarrant payable to tn
/ state Of Texas. and duly indorscd by me.
The claim is one OF long standing and
arose iii the settlement with the United
States OF the northern and western boun-
daries OF the state In 1850. So much of
the act of congress approved September
3. 1850, as Affects the question, provided
that for the REIMBURSEMENT OF certain
! territory by the State mentioned In the
( act. the United States would pay $4,000,
900 In stock, bearing per cont interest.
! The act also provided that no more thun
| S5,000,00o OF said stock should be issued
until the creditors of the State holding
bonds and certificates OF stock of Texas,
/ for which duties on imports were specially
! pledged. should first file mt the treasury
OF the United States releases OF all claims
against the United States for or on ac-
| count OF said bonds or certificates In such
form as should be prescribed by the Soc
rotary of the treasury. BY the act of
congress. approved February IS, 1866. It
I was provided that, in lieu Of the Sc. 900. 900
of stock withheld under the provisions OF
the act Of 1850, above cited, the United
States would pay certain claims against
the Republic OF Texas, named in section
OF the act. pro rata, estimated to amount
to the sum of $7,75o,o00, and that where
the State had paid any OF such claims the
amount should be refunded; not, however,
to exceed the sum the creditors would
have received under the pro rata payment.
Tho sum OF $7,7bo,ooo was appropriated
to carry out the act, the $2,750,000 In ex-
cess OF the hve million dollars of stock
being intended in part to include claims
made by the State against the United
States by reason of Indian depredations
The sum paid was supposed, when the
appropriation was made, to be the balance
of the appropriation of 1910, 900 which was
not paid to the creditors of Texas. The
controversy between the two governments.
covering a period of more than forty
years, was whether this balance belonged
to Texas or Injured to the benefit OF the
United States in consequence OF the lack
OF creditors or failure to present their
claims. BY several successive acts OF con-
gress the time within which creditors
hall AI,f,,.
until January 1, 1861. On June 30, 1877,
this balance Of $101,1 was covered into
the treasury of the United States and
could not have been thereafter withdrawn
or any part thereof without an act Of
congress, approved February II. 1888 the
sum of $4,000 was appropriated to pay tho
claim of Thomas Toby against the Repub-
ltc OF Texas and II was paid March z.
1888. BY Joint resolution of the State of
Texas approved March 30, 1881. the Toby
claim was fully acknowledged and recog-
nized. This joint resolution also provided
in effect, that II the heirs of Thomns Toby
before memoralizing congress or applying
for payment OF the claim should file re-
lease of all claims against the State Of
Texas In the State treasury, the payment
OF this claim would be accepted az a credit
on the amount claimed to be due tho State
This release was duly filed and consc-
quently the sum due the State was $50,
1927. instend of 01.113.27. Those In
charge Of the matter for the State were
misled MS TO the balance in the treasury
to the credit OF this fund by letter from
the secretary OF the TREASURY. II Ia there
fore respectfully recommended that tho
sum of $4,000 be at once refunded TO the
United States.
Special counsel were employed to collect
this money, and to this your attention
liz now called. In the summer OF 1897 ex- |
Governor Hogg, representing the law Arm
OF Hogg q Robertson OF Austin. informed
me that he knew Of large claim due the
State by the United States. which he be-
lieved he could collect II authorized and
employed to do so. Attorney General
Crane was sent for and the claim die
cussed. Neither the attorney general nor
myself Ind any previous knowledge of the
OF the claim, nor as sutscnuent-
~ developed. had the treasurer or comp
troller. The substantial result OF the con-
ference and discussion, relating both IN the
validity OF the claim and thu sxpediency
OF employing special counsel. was that
the attorney general and myself were
OF tho opinion that the claim could not
probably be collected, and whether special
counsel should be engaged was for me to
determine The matter was taken under
Amusement, and after mature considera-
tion contract was entered into with
Messrs. Hogg e. Robertson dated July 30
1897, under which they were authorized
to prosecute and collect the claim. Al
copy OF tho contract lis transmitted with
this message. The balance OF the fund
having been covered into the treasury the
claim could only be collected by congress
sional appropriation or judicial action in
the court OF claims at Warrington and
In the latter case. because OF the age Of |
the claim. special authority TO sue the
United States would probably have been
necnsrnry. The reason for this employ
ment were these: m The counsel nm
ployed gave the Information of the exist
ence of the claim to the State authori-
ties. without which II probably never
would have been collected and good faith
suggested that II should not be used
without credit 10 those WIN furnished IT,
II IN not true that the claim was discov-
cred by them in the sense that no other
persons had heard Of II. but II Is true in
the equivalent sense that those who had
had previous knowledge OF Il had either
forgotten II or abandoned NIL hope OF Sc
curing It's payment No member OF con-
gress from Texas and no State official II
IS believed. made any effort to collect the
money or any mart thereof after 1888
and It Is reasonable 70 suppose that thew
we're either not advised OF the claim or
lid not believe Il cnnid be collected. To
have sent the claim to member OF
n<x...., - REORGANIZATION t,uder the ctr-