On
October 3, 1842, the English investors transferred their interests to three
other Englishmen and three Americans who were each scheming for control of the
colony: Daniel J. Carroll, Sherman Converse, and Charles Fenton Mercer.
Converse,
after persuading the Louisville group to assign their rights to him, obtained a
fourth contract with the Republic of Texas on January 20, 1843. It gave a
five-year extension, to July 1, 1848, to fulfill the contract and added over ten
million acres to the west of the colony. When the promises that Converse had
made were not fulfilled, the Louisville group, thinking themselves deceived,
found additional investors and reorganized as the Texas Emigration and Land
Company on October 15, 1844.Under the leadership of Willis Stewart, an
astute Louisville businessman and one of the new investors, the company made
good its claim to be the true owners of the Peters colony. The confusion over
ownership, however, discouraged immigration to the colony, and by July 1, 1844,
according to the
company's own agent, Ralph H. Barksdale, there were only 197 families and 184
single men in the colony. The company was further hampered in its attempts to
attract settlers by an ordinance passed by the Convention of 1845
that
required an investigation of all colony contracts on the assumption that they
were unconstitutional. The company increased its problems by employing as its
agent in 1845 the London-born Henry O. Hedgcoxe, whose foreign and officious
manners irritated the colonists and reinforced a commonly held suspicion that
the contractors were mere land speculators. An influx of squatters into the
colony also complicated the company's task of administrating the colony.