President David G. Burnet refused to accept Sherman's resignation when the fighting was over and instead commissioned him as colonel in the regular army and sent him to the United States to raise more troops. After weeks of illness Sherman made his way back to Kentucky and sent troops and clothing back to Texas. His wife, the former Catherine Isabel Cox, returned to Texas with him. They established their home, Mount Vernon, a one-room log house, on a bluff below the San Jacinto battleground. In 1839 the family moved to Cresent Place on San Jacinto Bay. Sherman was Harris County's representative in the Seventh Congress of the Republic, serving as chairman of the committee on military affairs. During his term in office he introduced a bill to establish the position of Major General of the Militia and increase protection along the western and southwestern frontiers. In 1843 he was elected major general of militia, a position he held until annexation. It was in his capacity as head of the militia that he presided over the trial of Capt. Edwin W. Moore.
After annexation, Sherman moved to Harrisburg and with the financial support of investors bought the town and the local railroad company. The town was laid out anew, and he organized the Buffalo Bayou, Brazos and Colorado Railway Company, which constructed the first rail line in the state. In 1852 Sherman was among the passengers when the steamer Farmer burst its boilers; he was saved by clinging to a piece of wreckage. In 1853 the Harrisburg sawmill, owned by Sherman and DeWitt Clinton Harris, was burned. After his residence also burned, Sherman sent his family to Kentucky, and he moved into the railroad office at Harrisburg. Then that office burned. Sherman was keeping the Island City Hotel in Galveston when the Civil War came. Appointed commandant of Galveston by the Secession Convention, he performed his duties ably until he became ill and retired to his home on San Jacinto Bay. A son, Lt. Sidney Sherman, was killed in the battle of Galveston. David Burnet Sherman, the remaining son, died after the family moved to Richmond, and Mrs. Sherman died in 1865. Sherman spent his last years in Galveston. He died there at the home of his daughter, Mrs. J. M. O. Menard, on August 1, 1873. Sherman County and the city of Sherman in Grayson County are named in his honor. Source
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