Texas gained independence from Mexico and formed the Republic of Texas in 1836. In December of that year, the Congress of the Republic formed the General Land Office to operate under the direction of a Land Commissioner. All vacant land became the property of the Republic and all existing land titles, surveys and documents were to be given to the Land Commissioner.

Since land was the only resource that the new Republic then possessed, it was used to reward soldiers, to promote settlement and to finance the operation of the new Government.

Bounty Grants were issued to soldiers according to their length of service in the Army of the Republic. Given that John McAdams, Jr. had served in the Army for three months (July to October, 1836), he was therefore entitled to a 320 acre Bounty Grant. However, John, Jr. did not execute this grant, electing instead to assign this 320 acre grant to J.C. Hill in May, 1848 either as a sale or perhaps to pay back a debt. This was a commonly accepted practice as allowed by the established Rule of Law.

The property that J.C. Hill claimed under this Grant is located in the Eastern part of downtown Tyler.