The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-30
THE BOND HJUNc1IOy SURF.
Judge Jere Wilson and senator Allen Arru,
for the Petitioner.

HE bOND I'CtNtfION hCf1,
Judge Jere Wilson and senator Allen Argue
for the Petitioner.
WASHINGTON, Jan. 2a.-General Master Work
man Sovereign and Thomas b. Mcclure OF the
General Executive Board OF tho knights OF
Labor. at 10 o'clock this morning. by thar at
torneys, {. G. Cole OF Des Moines la, senator
Allen OF Nebraska. and J. Warner Mills OF Dem
yer, appeared before Judge Cox OF the supreme
Court Of the District OF Columbia and made
application to file bill In equity PRAYING that
an injunction issue restraining John q. Car
isle. the Secretary OF tho Treasury. from
issuing and selling S5O.OnO.000 In Govern-
ment bonds. "a he has announced his purpose
OF doing. An examination Of the bill as filed
shows that certain material changes and adj
ditions have been made to IL by counsel here.
These changes are: First. that Mr.. Mcclure
OF the Executive Board is made party TO tho
suit with Mr.. Sovereign. both being citizens
and taxpayers OF the United States; second.
the following additional allegation is made:
And the said John Grin Carlisle Secretary Of tho
Treasury. now engaged in and directing the eXpend
ture Of public OF the United states in the prepa
ration and proposed placing the market for sale of
the unlawful issue of the bonds herenbeors referred
to- and IL threatening and is about TO make further e
gal expenditures IN such behalf and is preparing and
threatening Illegally to eNrend the public moneys Of
the United states for OF interest and also
for the principal or said bonds all Of which said
durss and contemplated expenditures unla ful in
this wit That tho said bonds constitute
intended to constitute contracts with the United
states. which said John Orifiin Carlisle Secretary
aforesaid Is by law prohibited from making as beng
contracts binding. or intended to bind. the Govern
men: to pay tie principal and interest OF said bonds.
the issuance OF said bonds being without authority
OF law and no appropriation having been made to pay
the same. any part thereof or any expenditure
thereto and all OF the hereinb-fore forth
being the special prejudice Of these comp as
citizens and taxpayers OF the United states and
to those whom they represent in this action
A second insertion In the bill prays that the
injunction may be made TO restrain the Secre-
tary from expendng public moneys In pre-
pairing and issuing the contemplated bonds.
Mr.. Jere Wilson Of the law firm OF shelR-
hnrgeF X Wilson OF this city Opened Tor the pe-
titioners. The question involved. he said was
lance. The application was for a rule upon
the Secretary OF the Treasury to show cause
why he should not he restrained from issuing
$50. OOu. 900 in bonds. thus and TO that amount
increasing the debt OF the United States.
II was neither required proper at
this time to go deeply into the merits OF the
case Tor The issuance OF the rule applied for
Mr.. Wilson read abstracts from an editorial in
il was argued that II there was any doubt as
to the necretnrys authority to issue the con-
have that question decided at once and for all
before further complications arose. This was
this court, which was the only court under the
law to which a citizen could apply 90 restrain
an administrative officer from doing that
Mr. Wilson read several authorities and de-
cision- tending to establish the jurisdiction Of
this court in matters Of this character. and
max ing Il the duty of the court to restrain a
public officer from doing what he proposed to
no authority OF law for his contemplated act
!! be .j also read and Gommented upon section
UTDhilitS the making OF contracts inyDlV-
ing tho expenditure OF the public moneys by an
otiiter Of the Government. except In Ger
War and Navy DEPARTMENTS. un ss5 an
APPROPRIATION had been made therefor. Mr..
bonds involved not only an expenditure which
was clearly inhibited by this act, but the bonds
clearly prohibited Judge Wilson quoted from
the ACT ~ Jan. II, 1879, for the purpose OF
SonGs suthorized thsrein could be used was VAS
Tor the r"d"mption Of ltga, tender notes then
99utstGnd.n& Als" from the act Of July =,
lied was for the sole purpose Of reiunding the
then existing debt OF the nited States.
motion, lie said that the laws OF the United
States were the chart and compass Of the Sec
retary Of tho Treasure and he was the creH-
every duty AMI obligation. The act OF Jan.
IA, 1879. provided fog the issue Of bonds for
deemiug outstanding legal tender notes in eX-
cess Of 500. 900. 900, and for no other purpose.
Secretary from redeeming any more Of the
legal tender notes and Was direct reversal Of
tho act Of 1917. Later. in the discussion OF
this case on its merits. Senator Allen said he
would undertake to show that the ST 90 utDU
gold reserve was a mere caprice OF the SecTe-
tATy OF the Treasury. and that there was not
the least authority OF law for its creation, and
he would undertake to show, By reasoning
which couli not 10 successfully combated,
that the SeeTetaTY's proposed act was an eGeT-
else OF arbitrary power repugnant TO our in
stitutlons and laws.
As the senator concluded for the petitioners.
Judge Cox said that his decision would be
NJ ade to morrow or WednesdAy.
This afternoon General Secretary McGuire
OF the knights OF Labor, and on their behalf
obtained from the supreme Court OF the Dis
trtct Of Columbia a subpuna, addre- sed to the
Marshal OF the District. directing him 10 serve
the same upon the Secretary OF the Treasury,
Court and make answer to the hill asking Tor
an inJunCt ion that was filed there to-day. The
service OF this process. II IL said Is necessary
in order 20 properly acquire jurisdiction OF the
case, and Is also necessary, as II gives notice
TO all Intending purchasers OF the bonds IT the
existence OF this suit and II purchased By
clAred 70 have been Illegally issued. claim to
be innocent purchasers.
ME taTlisle Is required 20 put In an appear
ance IN the case on the hrst Tuesday in March
next and to plead or answer betOTs the first
Tuesday in April. Independent Of whether
Judge Cox grants or refuses the Injunction
prayed for IN the bill filed to-day proceedings
case Judge COX's decision is adverse 10 the Pc
tttioneTs an appeal " II eventually be taken to
the supreme Court OF the nited states In
CouIt Of the United States IN time 10 prevent
the issue Of the bonds. the bill will be amended
so as TO prevent the payment lof interest
thereon.
BsaaIrstoH A. WO-Tz' InpsrIaI Beer
Try a. Y0u ain prefer it g. sIy othsr.-AtE