Daily Texarkana Democrat., 1894-01-30
BONDS OR NO BoNDsp
Injunction to Prevent their Issue
Carlisle Trying to Get Bids.

Yesterdays press dispatches thu
speak of the bond question and Car
isles attempt to get bids from New
York bankers:
INJUNCTION PROCEEDINGS.
Arguments were today heard befor,
Judge Cox, of the District Supreme
court, Oh the application Of Crane
Master Workman Sovereign and T. B
McGuire, of the knights of Labor, fol
an injunction to restrain Secretary
Carlisle from issuing $5O,OOO,OOO in
bonds, as proposed in his recent bond
circular.
Only a score of persons heard the
arguments. The applicants for in.
junction were represented by Senator
Allen, of Nebraska; Judge Jere Will
son, Judge c, G. Cole, of Des Moines,
To-, all of whom took part in the argu-
ment.
The court was asked to compel Sec
retary Carlisle to show cause why the
writ asked should not be granted.
Counsel Wilson, in opening the case,
referred TO the fact that there was no
other judicial tribunal TO which the
applicants had resort under the circum-
stances. He declared that no other
business would sustain as much in
jury or damage by the bond issue as
that of the miners who form large
percentage of the 10000 or more men,
bers of the Knights of Labor. Though
the Secretary in announcing that
bonds would be issued cited the act
of January IA, 1875, providing for
specie payment resumption as au-
thority for his action neither this act
nor that of July IA, 1870, authorizing
the refunding of The national debt con-
ferred the authority.
Counsel Mills then read the applica-
tion. "The issue of the bonds as pro-
posed" said the application, "involves
an Indebtedness approximately of $75,-
100000 including principal and inter-
est. Your orators complain that on
January II, 1894, the defendant, John
Griffin Carlisle, Secretary of the
Treasury, caused to be issued, pub
lished and offered for pubic subscrip-
ton an issue of United States bonds
to the amount of $50,0O0,OOO, redeem
able IN coin at the pleasure of the
government after ten years from date
of issue, bearing interest at per cent
per annum and dated February l, 1894.
Senator Allen who followed referr-
ed to the reserve fund as mere ca
price of the Secretary who, he said,
was without authority and absolutely
powerless to issue obligations of the
Government.
Judge Cox reserved his decision,
and announced that tomorrow or
Wednesday he would state his con-
clusion in the case.
CARLISLE ASKING BIDS OF NEW YORK
BANKERS.
A score of the leading bankers of
the city met Secretary of the Treasury
John G. Carlisle in New York yester-
day TO discuss the Secretary's pro-
posed issue of bonds. None of the
banks of this city made bid for the
bonds when Secretary Carlisle made
his public announcement. 1t is an
open secret that this was great dis
to the Secretary, and,
therefore, the bankers met, expecting
some proposition to induce them to
subscribe generously to the issue.
They were agreed that they would not
take bonds in any quantity unless they
received their usual commission for
handling them. They expect too that
the Secretary will clear up any ques-
ton of the legality of the bond issue,
At the conclusion of the meeting
between Carlisle and the bankers
no one who had been present was will
ling to give any information as to
what had taken place. Mr. Carlisle
declined TO see any newspaper men.
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