St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-01-30
OPPOSED TO THE BONDS.
LvJUNc TON TO RESTRAIN SECRETARY
CARLISLE FROM ISSUING THEM
ARGUED BEFORE JUDGE COKE.

ARGUED BEFORE JUDGE COKE.
The Courts Decision Delayed
The Labor Knights Were Rep
scented by Senator Allen, OF
Nebraska. Judges Wilson and
Cole, OF Des Moines, and j. w.
Mills, OF Denver.
WASHINGTON, Jan. 29.-Arguments
were today heard before Judge Coke, of
the district supreme court, on the ap-
plication of Grand Master Workman
Sovereign and L. b. Mcclure. of the
Knights of Labor, for an Injunction to
restrain Secretary Carlisle from issuing
S50,00O,000, as proposed in his recent
bond circular. Judge Coke reserved his
decision, and announced that tomorrow
or Wednesday he would state his con-
cluSlon III the case. Only score of
persons heard the arguments. The ap-
plicants for injunction were represented
by Senator Allen, of Nebraska (Rep.);
Judge Wilson, G. q. Cole, OF Des
Moines. and j. w. Mills, of sDenver. all
of whom took part in the argument.
The court was asked to compel Secre-
tary Carlisle to show cause why the
writ should not be granted. Judge
Wilson. in opening the case, referred
to the fact that there was no other Judi
clal tribunal to which the applicants
had resort under the circumstances. He
declared that no other business would
sustain as much injury or damage by
the bond issue as that of the miners,
who form large percentage of the
$4,000 or more members of the knights
of Labor. Though the secretary in an
nouncing that bonds would be issued
cited the act OF Jan. IA. 1875, providing
for specie payment resumption as au-
thority for his action, neither this
action nor that of July IA, 1870, author
iZlng the refunding Of the national
debt,
CONFERRED THE AUTHORITY.
Counsel Mills then read the applica-
ton.
1.-The issue of the bonds as proposed"
cited the application, ''involves an IN
including principal and interest. Your
orators complain that Jan. II, 1899, the
defendant, john Griffin Carlisle. secre-
tary of the treasury, caused to be issued,
published and offered for public sub
scription an issue of United States
bonds to the amount of $50, 600. 900, re-
deemable in coin at the pleasure of the
government after ten years from date
of issue, bearing interest at per cent
per annum and datod Feb. l. 1894.
Orators further show that The pro-
posed action for the issuance and sale
Of bonds offered by the defendant is
illegal, without any authority and con-
trary to the statute of the United States.
in that the bonds are not proposed to be
issued or sold to redeem the legal ten
der United States notes. Further, that
by the act of July IA, 1870, there was all
express inhibition upon the issue of any
bonds so as to increase in any way
whatever the bonded debt of the United
States. 1t is also averred that the act
Of Jan. IA, 1875, was amended by that of
May 81, 1878, SO as to withdraw from the
secretary of the treasury the power to
redeem any more of said legal tender
United States notes, and that there
We're outstanding when this act took eff
feet S346, 100000 of legal United States
notes. 1t is further shown that there is
no demand now, nor has been any prac-
teal possibility that a demand will or
can be made for any redemption of the
legal tender notes. The proposed action
under the published offer for Subscrip.
ton is not only without authority of
law, and contrary thereto, but without
necessity or sanction in the condition of
the United States treasury. for there is
in the treasury S75,0OOO QUO OF United
States gold coin, which may rightfully
| and properly be applied and used for
the purposes for which the bonds as Of
fered for subscription are
PROPOSED TO BE SOLD.
Neither the necessities nor conYen-
| fences of the government requires
issuance of the bonds, while such issue
ana sale are prohibited by the laws.
But now the defendant, combining and
coufederatng with divers persons at
present unknown, at times pretends
! that the issue and sale Is necessary to
maintain Sl00.000,000 gold coin reserve
for resumption or other purposes;
whereas there is no law or authority
requiring such reserve. Nor is such
reserve desirable or practicable. All of
these actions and pretenseS are contrary
to equity and good conscience.
And that an injunction may
issee against the defendant,
nus cOnIeOeTdIGS OF employees. against
issue and sale of the bonds and from
expanding public moneys in preparing
and placing OH the market for sale the
issue Of bonds and In paving any in
stallment of interest Oh the principal.
May it Please the court to grant unto
your orators the writ to subpoena John
Griffin Carlisle and confederateS and
agents by certain day under certain
penalty to appear before this honorable
court i'll chancery sitting, and then and
there to answer the premises and fur
Their to stand to and abide such orders
and DEGREES as shall be agreeable to
equity and good conscience"
Counsel Wilson, in continuing his
argument, discussed at length the
meaning of the acts of congress bearing
on the bonds and defining the secre-
Iary's authority. He declared that there
was no question as to the jurisdiction of
the court in the matter, and urged that
the Importance OF the secretary's action
demanded Immediate judicial restraint.
Senator Allen, who followed, referred
| to the reserve fund as mere caprice of
| the secretary, who, he said, was without
| authority and absolutely powerless to
| issue obligations of the government.
| After the arguments had been con-
| Guided, Judge Coke announced that he
| would decide tomorrow or Wednesday
| whether to issue the rule asked.
| Working for Glory.
Blue Earth City Post.