The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-01-31
NO STANDING IN THE COURTS,
The Knights Of Labor Get
Black Eye.
Their Application for an Injunction
Denied.
Carlisls's Bond Proposition Meeting
With Great success--New York
Bankers Subscribe for
Thirty Millions.


|
WASHINGTON, Jan. 30.-Judge Cox o.
the district supreme court this morning
declined TO grant the application of the
knights of Labor to compel Secretary
Carlisle to chow cause why he should
not be enjoined from issuing $50, 900 .00(
bonds as proposed.
The court in it's decision says the
application of the Knights of Labor
asserts that members of the organization,
as citizens and taxpayers, have right
to an injunction. Should bonds be
issued the interest would practically
amount to tax of 81 per head in the
country, resulting in an outlay OF $500, 00C
for the Knights of Labor. Judge Cox
said the knights. as an organization.
had no standing in the courts.
The court continues: NOW there
never was ger capita tax in the eoun-
try; no law in force requires the pay
ment of a direct tax. Should such a
tax exist, the complainants have not
shown that they are property holders.
They have no standing in court as tax
payers. and no legal right in the ques-
ton aH to bond issue. The claim that
the interests of the organization are dill
ferent from the general public, and
would suffer more than other classes
Creferring to the claim that many
Knights are miners) is a grievance of
discrimination, but gives no standing
in judicial proceedings"
Judge Cox then reviewed the laws
bearing on the question, and declared
it is unnecessary to enter into a
discussion of the rights OF the secretary
to make the issue. The secretary, be
said. had legal authority to redeem
notes when presented and issue and
sell bonds when necessary.
The knights will appeal from the de.
cision to the district court of appeals,
and the case may eventually 90 to the
supreme court of the United States.
Secretary Carlisle was at his desk in
the treasury department today. He
declined to make for publication any
statement of his trip to New York. It
was officially stated at the department
that the statement attributed to the
secretary while in New York, that if
the subscriptions run up $75 200, 900 he
intended to sell that amount of bonds.
1t is said that if the secretary had want
ed that amount of bonds he would have
80 stated in his circular inviting propos-
ais for them.
The treasury officials received with
unfeigned satisfaction the decision OF
Judge Cox Diminishing the petition of the
Knights of Labor for an Injunction
against Secretary Carlisle to restrain
him from issuing bonds.
kilograms were received from New
York this afternoon by Secretary Car
Isle announcing an offer of 500, 100000
and another of $40 200, 900 subscription
to the new bond issue. The secretary
said he had no doubt the entire Issue of
$50, 900, 600 would be foated at the up
set price and upwards.
The $50, 900 subscribed for in New
York today is in addition to the offers
heretofore received at the treasury de-
partment, and assures the success OF the
loan beyond question.
New YORK, Jan. 30.--Bank officials
here have reached the conclusion that it
would be q mistake to allow the govern
ment bond issue to fail for lack OF sup
port. They fear il the issue is not taken
Carlisle will endeavor to secure author
ity to coin the seigniorage silver in the
treasury. They also fear the failure
would have bad effect on the present
government. Therefore, President
King, of the Union Trust company, has
undertaken to form a syndicate to bid
for the entire issue at the upset price.
1t is understood Russell Sage and Presi-
dent Olcott of the Central Trust COM
pany will cooperate, and the movement
is likely to be successful.
The syndicate has already agreed to
take $25, 100000.