The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1894-02-02
JUDGE cox DECIDES AGAINST
THE KNIGHTS OF LABOR.
REFUSED TO GRANT TIE ORDER.
Short Work Made of Grand Master Work
man sovereign's Attempt to Have
the Issue of $50, 200, 900 Bonds
by Secretary of the Treasury
Carlisle Prevented-Wash-
1ngton News.

WASHINGTON, Jan. 31.-Judge Cox of
the district supreme court this morn
ing declined to grant the application
of the Knights of Labor to compel
Secretary Carlisle to show cause why
he should not be enjoined from issuing
$50, 1000, 600 worth of new bonds as pro-
posed in his recent bond circular
Judge Cox in his decision declared
that the Knights of Labor as an or
ganization had no standing in court to
maintain the injunction, and his opin-
ion also sustained very fully Secretary
Carlisle's right to issue gold bonds.
t'On general principles" he said, mo
person can legally begin action
against an officer of the government
unless the rights of property of COM
plainant or compliments are in
volved.''
The application of the Knights of
Labor asserts that the members of the
order as citizens and taxpayers have a
right to the injunction, as should
the bonds be issued the interest will
practically amount to a tax of about
81 a head in the country, thereby re-
sulting in an outlay of $500, 900 for the
Knights of Labor.
Now, there never was per capita
tax in this country. No law now in
force requires the payment of direct
tax, though there was one in 1916 and
another in 1861. Should such tax exist,
the compliments have not shown that
they are property holders. They have
no standing in the court as taxpayers
and no legal right in the question as
to a b I'd issue.
The lain that the interests of the
organization are different from the
general public and would suffer more
than any other class referring to the
claim that many Knights were miners)
by the issue is grievance in the dis
elimination, but it gives no standing
in judicial proceedings. Consequent
.ly, as taxpayers and miners the COM
p1ainants have no standing in court.
Judge Cox then reviewed the laws
bearing on the question and declared
that it was unnecessary to enter into
discussion of the rights of the secre-
tary to make the issue. The secretary,
he said, had legal authority to redeem.
notes when presented and to issue and
sell bonds when necessary.
General Secretary Mcguire of the
Knights will appeal from the decision
to the district court of appeals and
from there eventually the case may go
to the supreme court of the United
States
The decision was arrived at in a
shorter time than had been expected,
for the arguments were made only
yesterday and were not completed un-
til late in the evening.
Secretary Carlisle was at his desk
in the treasury department to-day,
but as it was cabinet day he did not
see any visitors, but devoted his time
exclusively to the consideration of
department business. He declined to
make for publication any statement
of the results of his trip to New York.
It was officially stated at the depart
ment that the statement attributed
to the secretary while in New York,
that if the subscriptions should run
up to S75, 900, 900 he intended to sell
that many bonds, was correct.
Several of the bank officials who at
tended yesterdays conference have
arrived at the conclusion that it would
be mistaken policy to allow the gov
cement bond issue to be endangered
Inactivity or lack of support on the
part of the financiers ofEthis country.
They have also been influenced to
this conclusion by fears that if the
issue should not be successful Secre-
tary Carlisle would endeavor to Sc
cure the passage of a bill authorizing
the coinage of the seignorage of silver
bullion now in the treasury, and the
possibility of reflection upon the
credit of the government by the fail
ure to sell the bonds.
Under these circumstances Presi-
dent Kink of the Union Trust com
pany has undertaken the formation of
a syndicate to bid for the entire issue
at the upset price. 1t is understood
also that he has interested Russell
Sage and President Olcott of the Cen
tral Trust company with him.