The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-01-22
sl3S,643 is STILL DUE
The State from the Federal Government
Farmer" Shaw Says.
hoGG DIDN'T RECOVER THE INTEREST
When He Succeeded in RecIaimins
Principal, which ~ Is Contepdcd
He should HIVE Tried 10 DO.

Dallas, Texas, January 2i.--Farmei
Shaw he's discovered a new situation re-
garding the Hogg foe question, He sale
today: The Hogg fee ought to be pait
in full unless the State wants to punish
Hogg & Robertson for not collecting III
as much as they should have demanded
The position that governments do not, al
q rule, pay interest on claims of this ma.
turc may be to some extent correct, bui
II does not apply in this Instance, be.
cause the original contract calls for s pei
cent interest and because. further, the gov
ernment has already, In one instance OF
record, paid 81 100000 interest on this iden.
tical claim, II you Will examine the re.
port of the congressional committee that
in 1888 investigated the Toby claim, this
statement will be verified. Hon. ID. q
Culberson, il I remember correctly, was
chairman of the committee. In giving a
history Of the transaction they show that
s5,000,0o0 were repaid Texas and s5OOo,p0J
more reserved out OF which claims against
the Texas republic were toy BIO paid, pro
rata, conditioned That creditors would sign
releases In full OF all claims, This the
creditors refused to do, and the thing
hung fire from 1850 when the contract
was made to sl0,000,o00 in stock drawing
5 per cent interest, the United States. az
mentioned before, reserving s5,o00.oOO.
I'm 1855 the matter again came up, when
Texas secured an additional appropriation
of s2,000000 to reimburse damages from
Indian dopredations. The matter was then
adjusted on this basis: Government agreed
to pro rate claims from the original prin-
cipal reserved s5,0oooOo; accrued interest
on same sI,50O,000; additional appropriation
81, 0OO. 900; total ss,5o0,0oO.
II have not the data by me and hence
quote from memory. but have 1t In mind
that the total above should be $500. 900 In
stead OF $s.00o,00o. II may be, therefore.
that the interest item above is 100000 in
stead OF 81 100000. but the argument In
yoiyed is the same. II the government paid
interest on this claim lip TO 1855, when
final adjustment was made, under which
creditors agreed TO release their debts upon
payment pro rata, then 1t is clear tho
government owes interest ON any balances
in its hands after 1865.
1.-THE government was number OF years
paying off the claims Hence. interest IL
not only due on the SOL. 1897 collected
by IIogg, but from 1885 upon any other
balances In the United States treasury to
the credit Of this claim on which interest
was NOT paid. This Will aggregate large
sum. For instance Interest alone on tho
SOL, 113.2T at 6 per cent IN TO 1888, whom
the Toby claim was paid, wdlld be owen
ty-eight years) sl4l,55s.5S, From 1858,
when the Toby alaim was paid, interest 70
due ON $50, little over fifteen years,
or in round numbers the interest on the
last claim would be sf2osis5. or a total
interest on the SOL, 1927 claim since 1855
81 over s1ss.s4s. That Is, instead OF the
state owing the general government si5,-
600 ON the Toby claim paid. the govern
ment owes the state a balance Of st least
s1sssls. It follows that II culberson,
Crane, Hogg q Robertson. sayers ana Chill
ton deserve any harsh criticism 81 AL
Il is for not insisting on collecting the
entire amount due; and they ought TO re
Ia II that Il Is yet done.