It's not too surprising. The pension board probably requested information about him from the War Department and learned there was nothing on file under his name. The POW data on file now wasn't on file then. The next step required the veteran to produce witnesses to his service, which he seems to have been able to do. Pension board members knew muster roll data to be spotty, particularly among mounted units. That being the case, statements by two witnesses willing to attest to his service was sufficient to persuade the pension board.

This is just surmise on my part. If this was a court case, it might be demonstrated under cross-examination that the witnesses weren't really able to swear that this man served faithfully until the end of the war. Since it wasn't, he was accepted by the board and awarded a pension.

A couple of additional thoughts. In his book, William C. Oates comments on deserters from his regiment, the 15th Alabama. He personally knew of many soldiers that served faithfully and well up to 1865, and then left their command. Oates stated that, considering the situation, he didn't personally blame these men for their actions. Of course Oates served as Governor of Alabama and it may be that his opinion was shared by other prominent Alabamians at that time, including members of the pension board. If I understand, Graham said he left the 51st Alabama in 1865. Perhaps his memory was a little off, or he may have "flavored" his application to make it acceptable to pension board members.

By October of 1864, popular opinion on both sides held that that Confederate chances of winning the war were slim and none. The capture of the bay forts outside Mobile, the loss of Atlanta and Early's defeats at Winchester and Fisher's Hill dashed hopes that the Northern public would tire of war and replace Lincoln with a more favorable president in November. Most of Alabama troopers that survived the raid through Tennessee were thoroughly exhausted and depressed. Graham wasn't the only soldier who didn't like his chances in future adventures under command of the diminutive Wheeler.