In July 1837, the town of Montgomery, Texas was founded in the middle of the Lake Creek Settlement, at the site of W. W. Shepperd's store.
It authorized settlers to raise militias for their defense against hostile Indian tribes, who were seeking to expel the European Americans from their territory.
Believing that an increase in settlers in the new state could help to deter the Indian raids, the Mexican government liberalized its immigration policies for the region.
Under the 1823 Imperial Colonization Law of Mexico, an empresario could receive a land grant within the Mexican province of Texas.
Together with a commissioner appointed by the governor, he was authorized to distribute land to settlers and issue them titles in the name of the Mexican government.
The grant could be increased for large families or those wishing to establish a new industry, but required the lands to be cultivated within two years.
The 1824 General Colonization Law made all heads of household who were citizens of or immigrants to Mexico eligible to claim land.
The law did not differentiate among races or social status, but immigrants were required to be Roman Catholic, and foreigners were expected to learn Spanish.
All persons wishing to live in Texas were expected to report to the nearest Mexican authority for permission to settle.
On May 20, 1825, Stephen F. Austin obtained from the Mexican State of Coahuila y Texas a new contract, to introduce five hundred families to the area.
24, dated March 7, 1827, defined the boundaries of Austin's Second Colony as follows:[15] Beginning on the west bank of the river San Jacinto, at the ten border leagues of the coast of the Gulf of Mexico; thence following its course with the right bank of said river to its source on a straight line north to the road leading from Bexar to Nacogdoches; thence with the said road westward to a point north from the headwaters of Labaca creek; thence on a line due south towards the sources of the aforesaid creek; thence down said creek, on the eastern bank of the same, to the boundary line of the ten littoral leagues, parallel with the coast, to the place of beginning.The West Fork of the San Jacinto River was navigable by keel boat up to this area, which added to the area's desirability.
These early families included: Cartwright, Chatham, Galbraith, Garret, Mock, Shepperd, Springer, and Worsham.
Applies for 4 quarters of league in Lake Creek settlement, marked J. M. Springer who relinquishes in favor of Chatham.
Relinquishes first selection and applies for vacant land between Austin and Greenwood.By 1835, the population of Lake Creek had become large enough to support a trading post.
William W. Shepperd, originally from North Carolina, purchased 200 acres of land on the John Corner League near the middle of the settlement.
[19] And Jacob Shannon says that he is a resident citizen of Montgomery County...that he knew the said Mathew Cartwright now present before him, in the year 1835 at and in Lake Creek Settlement now said County of Montgomery that he also knew him in the Army of Texas in the Campaign at San Antonio de Bexar in the year 1835 that he went from said Settlement in company with himself as members of Capt Fosters company under Capt Jos L Bennet (Foster having resigned) that he saw said Mathew Cartwright at the Siege of Bexar for and during six weeks...John Marshall Wade manned one of the "Twin Sisters" cannon during the Battle of San Jacinto.
[20] And Thomas Chatham says on his oath that he personally knew the said John M Wade now here present before him in the year 1835 in the month of October at the place called Lake Creek Settlement now the town of Montgomery...that the said Wade and himself joined Capt W Wares company and under his command joined the army of the Republic of Texas under the command of Genl Sam Houston on the Colorado River...said Wade and himself came with said Army to Groce's Plantation on the Brazos River and that said Wade was detailed to serve with the Artillery on the 16th or 17th of April 1836...That the said John M. Wade participated in the Battle of San Jacinto, to the best of his belief and knowledge on the 21st day of April 1836, that he returned from said Battle to the Lake Creek Settlement now the county and town of Montgomery where he resided for many years in fact up to the present date...Jacob H. Shepperd had attended West Point as a young man but withdrew, and immigrated with his family to Texas.
Shortly after the Revolution, he delivered a dispatch from General Sam Houston at Aies Bayou that saved the life of Mexican President Antonio López de Santa Anna.
Texas historian Henderson Yoakum credited Shepperd with carrying the document that protected Santa Anna.
Captain J. H. Sheppard, the bearer of the document, says the pleasant change of affairs filled Santa Anna with joy, and he embraced him as one who had saved his life.Following the Revolution, the Republic of Texas reorganized some areas.