New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-30
KNIGHTS OF LIBOR SUIT.
ARGUMENT BEGUN IN WASHINGTON TO
RESTRAIN CARLISLE
THE CONTEMPLATED ISSUE OF
BONDS Is ILLEGAL.
my TELEGRAPH TO THE TRlBryr.I

my rELFGRAPH TO THE TRIBrSr.l
Washington, Jan 29-The bill in equity fled
in the Supreme Court Of the District Of Columbia
to-day in behalf Of the knights Of Labor to re-
strain Secretary Carlisle from issuing bonds vas
supported by elaborate oral arguments sub
mittcd by jeremiah VI. Wilson and Senator
Allen. Of Nebraska The remark of Judge Cox
that he would render decision tomorrow or on
Wednesday not only indicated that he realizes
the necessity of prompt disposal Of the case.
but I'm the opinion of some of the men in Con-
gresS who feel a deep and active interest In
the result Is also indicated that the injunction
would be denied. In fact. some of the strongest
and ablest lawyers In Congress have declared
from the first that no judge would grant an
injunction I'm the fac" of the authority plainly
and clearly granted by the act of 1875 to enable
the Secretary of the Treasury To- meet any
emergency that might arise In order 10 maintain
specie payments.
An examination Of the bill az filed shows that
certain material changes and additions have
been made To- it by counsel here. These changes.
which did not appear In the published abstract.
are: First. that Mr. Mcclure OF the Executive
Board. Is made party to the suit with Mr..
Sovereign both being citizens and taxpayers of
the United States. Second the following ad-
dltonal allegation is made:
and the said John Griffin Carlisle as Secre-
tary of the Treasury Is engaged in and di-
iecting the expenditure of public moneys of the
United States in the preparation and proposed
placing the market for sale of the unlawful
issue of the bonds hercinbefore referred to. and
is threatening and is about to make further
Illegal expenditures In such behalf. and is pre-
pairing and threatening Illegally. to expend the
,t,l,I Of init a
ments Of interest. and also for the principal of
said bonds. all of which said expenditures and
contemplated expenditures unlawful in this.
to-wit That the said bonds constitute, or are
intended to constitute. contracts with the United
States which said John Griffin Carlisle Secre-
tary aforesaid. Is by law prohibited from maxi
ing being contracts binding or intended TO
bind the Government To pay the principal and
interest Of said bonds. the issuance OF said bonds
being without any authority of law. and no APP
preparation having been made To pay the same
or any part thereof. or any expenditure incident
thereto and all of the acts herenbefore set forth
being To the special prejudice of these COM
plainants as citizens and taxpayers of the United
states and also to those whom they represent
In this action.
\ second insertion in the bill prays that the
injunction may be made 10 restrain the Secretary
from eNpending public moneys in preparing and
issuing the contemplated bonds
Mr.. Wilson. of the law firm Of Shella harger
Wilson of this city. opened for the petitioners.
The question involved. he said was OF very great
gravity and of supreme Importance. The appli-
cation was for Il rule upon the Secretary OF the
Treasury 10 show cause why he should not be
restrained from issuing $50 600 600 In bonds thus
and to that amount increasing the debt of the
United States. Mr.. Wilson read several authorl-
ties and decisions tending 10 establish the Juris-
dicon Of this court In matters Of this character
and making 1t the duty OF the court TO restrain
public officer from doing what he proposed
TO do. If. In the judgment Of the court, there was
no authority OF law for his contemplated act
He also read and commented upon Section 3.I32
Of the Revised Statutes which in effect prohibits
the making OF any contracts involving the eX-
penditure of the public moneys by an oflcer or
the Government except in certain specified con-
tingencles arising In the War and Navy depart