The Southwestern Historical Quarterly, Volume 18, July 1914 - April, 1915 Page: 357
438 p. : ill. ; 23 cm.View a full description of this periodical.
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Texas v. White
with him.41 When Pease was installed as governor, the Throck-
morton agents were dismissed, and Paschal again became the offi-
cial representative of the State, serving as one of the lawyers when
the case of Texas v. White was being tried before the Supreme
Court.
Transfers of Bonds from White and Chiles
The bill in the case showed that, after the war, White had sold
a number of bonds to John A. Hardenberg, and that Chiles
had borrowed money from Birch, Murray & Company, giving bonds
as security.42 Apparently Hardenberg had bought his bonds in
an open market, and he insisted that the purchase was bona fide.43
Whether such was the case, provoked a lively debate among the
lawyers. It was asserted by the Texas lawyers that Hardenberg
and the others who had purchased bonds had had sufficient notifi-
cation of the intention of Texas to dispute the title of White and
Chiles to the bonds. Evidence was adduced to substantiate this
contention. Paschal, in 1865, had written several notices to the
'Attorney-General's (Texas) report for 1866-67; report of Comptroller
of Public Accounts of Texas for 1869-70. In the last document cited,
there is an account of the activity of Epperson and Walton. See especially
letter of Epperson to Comptroller Bledsoe, 16-17.
"For detailed account of the negotiations of White and Chiles in ex-
ploiting the bonds, see report of the case, 7 Wallace, 714-716; 25 Texas
(Supplement), 465-621.
"87 Wallace, 710-714. It is beyond the scope of this paper to describe
in detail the manner by which Hardenberg acquired possession of thirty-
four of the bonds originally given to White and Chiles. In brief, how-
ever, it appears from the testimony that they passed through numerous
hands before he bought them. The first trade was consummated through
a commission merchant, named Hennessey, and he, in turn, had received
them from a Mr. Douglas, of Tennessee. Douglas was the representative
of White in this transaction. Although Hardenberg did not know the
exact source whence these bonds came, he was aware that the original
owner had not been loyal to the United States during the late inter-
sectional conflict. He made no investigation to ascertain the identity of
this owner. For these bonds he paid 120 cents on the dollar at a time
when gold was selling at 146 and declining. This he considered to be a
good speculation. By this purchase he got possession of thirty bonds.
He also got four others,-one from McKim & Company, at 115 cents on
the dollar with gold at 147, and three from Kimball & Company at 120
cents on the dollar with gold at 146. In his testimony, Hardenberg pro-
fessed not to know that the bonds came from White or that Texas had
ever passed a law requiring the indorsement of the governor in order to
make the indemnity bonds negotiable. There seems to have been a great
deal of speculation in United States bonds at that time. The bonds were
redeemed in gold, and the holder promptly cleared a handsome premium
from the high prices of gold then current.357
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Texas State Historical Association. The Southwestern Historical Quarterly, Volume 18, July 1914 - April, 1915, periodical, 1915; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth101064/m1/363/: accessed May 5, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Texas State Historical Association.