The Portland daily press., 1894-01-31
BIDDING FOR BONDS.
Petition of the knights Of Labor
Thrown Out Of Court.
NEW YORK BANKERS DECIDE TO
MAKE SUBSCRIPTIONS.

And They Will Probably Take the Whole
Loan-Judge Coxs Decision in the Case
of the Knights-An Appeal To Be TAX
en-, but 1t VIII Be Too Late to Prevent
the Issue of the Bonds.
Washington, January 30.-Judge Cox,
in the Supreme Court of the District OF
Columbia, today rendered a decision de-
nying the application of General Master
Workman Sovereign of the Knights of
Labor for an injunction to restrain the
Secretary of the Treasury from issuing
$50,000,000 Of gold bonds. The judge
said it was well known principle of
law in cases of this character that the
complainants must show that the alleged
illegal act would, if carried into execu-
tion, injuriously affect their property
rights. He did not think this was
shown The bill alleged that the
Knights of Labor had member ship of
over 100000, and that the issue of bonds
would incur public Indebtedness of
about $65, 100000, or one dollar for each
member of the organization. This could
only happen in the case of a per capita
or poll tax. There was now no law levy
ing direct tax for the payment of pub
lie indebtedness. The complainants had
not shown that they would be taxed to
paw the bonds on maturity, and there
fore, as taxpayers, had no proper stand
ing in court. The interest each one of
the 65, 100000 people of this country had
in any one public debt was too infinitely
small to be seriously considered by any
court. There was no merit in the allega-
ton that the proposed action of the Sec
retary was discrimination against sill
YER. That was a matter in which the
Knights had peculiarly no rights. The
question of whether the United States
should pay it's debts in silver or gold,
was not question of law, but of public
policy, and not a matter in which courts
could properly interfere. Said the Judge:
II am of the opinion that if the bonds
were to be of silver instead of gold this
bill would never have been filed. AS to
the necessity of an issue of bonds, it is
not question on which the courts have
anything to BAY. 1t is generally under
stood that the treasury is in depleted
condition and that some action is neces-
sary to maintain public credit
The Judge stated his conclusions to be
that the secretary naO Gne 1lgnG 60 ISSUE
bonds to procure gold with which to re-
deem the outstanding green backs; that
those when redeemed could be reissued
and that those reissues should have the
same gold guarantees and safeguards as
the original had when first issued. The
Secretary had the right to use option as
to what metal he should pay the bonds
in and the payment in gold was a proper
exercise of his discretion.
At the close of Judges Cox's opinion
denying sthe:: injunction. J. II. ssRalston,
counsel for the complainants, sJated
tina he would prepare an order embody-
ing the courts ruling preparatoryssto ask
ing the court Of appeals to allow an ap-
peal and would present it for the courts
signature The Court of Appeals of the
District of Columbia will not meet until
Monday next. Hence the issue of bonds
cannot be prevented even if that court
should take jurisdiction. 1t is under
stood the bill will be so amended as to
ask for an order prohi biting the payment
of interest on the bonds in the event of
the position of the complainants being
eventually sustained
Mr., Carlisle, after the cabinet meeting
today, authorized the statement that
there was no longer any doubt that the
full $50. 900, 900 Of bonds would be taken.
One offer by telegraph from New York