The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-22
KNIGHTS AND THE BONDS.
The Attorney General RefrainS from
Expressing Any Opinion.

- Would Have Standing in Court-Le-
gal Circles Very Much in Doubt
Whether the Secretary's Action Can
be Questioned in Court-The Eastern
Bankers Holding Back Their Offers
To Take Bonds.
Washington, Jan. 21.-Attorney Gen
eral Olney's attention was called by a
representative of the Southern Associ-
ated Press to the published statement
that the Knights of Labor would en-
deavor to prevent Secretary Carlisle
from issuing bonds in accordance with
his public declaration by means of an in
junction by the courts. The Attorney
General said that the matter had not
been brought to his official attention, and
probably would not be until the reported
action by the Knights of Labor was actu-
ally begun in some court. When that
was done the department of justice,
through the United States attorney for
the district in which the proceeding was
begun, assisted, if necessary, by a repre-
sentative from the Attorney Generals
office, would appear on behalf of the gov
ernment. He declined to express an
opinion as to whether such a proceeding
could be maintained in court, as /: is not
the habit of the department of justice,
through its head, to express a public
opinion upon a case in which it may have
to appear.
APT TO HAVE STANDING.
1t is learned, however, from other
sources that the administration is not
entirely assured that such proceeding
as that contemplated by the Knights of
Labor would not have a standing in
court. 1t is a matter of record in the
District of Columbia that mandamus
proceedings have been instituted against
officials of the interior department to
compel them to issue patents. A recent
case in point is that of the state of South
Carolina against the commissioner of
patents, in which a proceeding was
instituted in the district court to
compel the commissioner of patents
to issue trade mark to the state of South
Carolina fora particular brand of whisky.
Another case that has recently appeared
in the district court is that of eX-Judge
Long, of Michigan, to en1oin the commits
sioner of pensions from suspending or re-
ducing his pension. Both of these cases,
it is contended, were based upon the ex-
ercise of discretion by the officials in
volved under the law.
AN EAERCISE OF DISCRETION
The issue of bonds by Secoetary Car
lisle it is alleged, is also an exercise of
discretion on the part of the Secretary of
the Treasury conferred upon him in GER
tain conditions by the resumption act of
1875. He is made, it is stated, the Judge
of the conditions when such issue of
bonds is necessary to maintain the credit
of the government. 1t is owing to
whether the conditions justify the issue
.Ft Al.
action will turn.
By his act the secretary has announced
that in his opinion it is justified, while
the Knights of Labor, by their contem-
plated action, have announced that 1t is
not. Very grave doubt is expressed in
legal circles that the exercise of such dis
cretion on the part of the Secretary of
the Treasury of the United States can be
questioned in court. Being entirely
familiar with the condition of the treas
ury he is in better position, it is as
serted, to decide when to exercise the dis
erection conferred upon him by law, than
are those not having like and accurate in
formation on the subject.
USE OF THE GOLD OBTAINED.
A graver question, and one, in the opin-
ion of eminent lawyers, presenting more
complicated condition of affairs, is that
of the use of gold obtained by bond
issue dl Ter IL Is uuduG. mere, IL Is Sdlu.
much doubt exists as to the authority of
the Secretary of the Treasury to use the
money thus obtained, for any other pur-
pose than that of redemption of green
backs. 1t is suggested that proceedings
for an injunction against the use of this
money for any purpose other than that
stated in the resumption act would hold
good in the courts.
WORK ON THE PLATES NOT STOPPED.
At the treasury department, however,
these obstacles to a bond issue find no ex-
preston among high officials, and the
work of preparing plates for the issue of
bonds goes rapidly forward. The people
of the country, too, Judging from the
number of offers already received, have
not stopped to consider the quibbles of
the law. Already offers aggregating $50
000, 600 have been received and each mail
brings in additional bids. These offers
are not confined to any one section, but
proposals in large numbers have been re-
ceived from as far south as New Orleans
and as far west as Omaha.
EASTERN BANKERS HOLDING OFF.
Eastern bankers and capitalists have so
far contented themselves with making in
quiries as to the conditions under which
offers will be received, although numerous
bids from this section by individuals for
small amounts have been made. A circu-
lar leLbef Oh INSTRUCTIONS Will De lSS ueQ To-
morrow from the treasury department
giving detailed information on the sub
lect of submitting offers for bon ds 1t is
thought that many Of the banks and
financial firms in the east that contem-
plate bidding for bonds will wait till the
last day, and be guided in submitting
their offers, which will probably be trans
mitted by telegraph, by the then existing
condition of the money market.
THE ACTION TO BE BROUGHT THIS WEEK.
DesMoines, Ia, Jan. 21.-After a dis
cussion of several hours this afternoon,
by General Master Workman Sovereign
and Judge George G. Cole, of the equity
action which Mr.. Sovereign will bring in
the supreme court of the District of
Columbia, to en5oin Secretary Carlisle
from the proposed bond issue, it
was definitely decided the action will
be brought this week. that Jadge
Cole will draw the petition, and that
Senator Allen, of Nebraska, win appear
before the court in behalf of Mr.. Sover-
eign. A telegram was received from
Senator Allen accepting the trust Judge
Cole says the request for an Injunction
will be based entirely upon two sections
of the federal statutes-one from the act
of 1870, relating TO the issuing of bonds,
and the other from the act of Jan. IA,
1875.