The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-01-30
BANKERS Will NOT Bid.
Carlisle on His Knees Before
the New York Financiers.
swEARs THE sohos ARE GOOD.
The Petition for an Injunction Ar
gued at Was hington City.
Tha rct.vuat Rexenus Rtt, Rad Refore
swEARs THE BONDS ARE GOOD.
The Internal Revenue Biii Road Before
the House, and Debate on the In
com. Tax Begun. Southern Members
Defending Il.

NEW YoRK Jan. S-By direction OF
Secretary Carlisle. Assistant Treasurer
Jordan sent out invitations TO thirty bank
presidents and officers of other prominent
financial institutions asking them TO meet
the secretary of the treasury at the sub
treasury. The conference lasted for an
hour and n half At the conclusion several
bankers presen said Carlisle had spoken
at length on the Judiciary committees
resolution aud said be thought this resoiu-
ton showed the legality Of the issue. He
also said he believed the resolution Sould
fail to pass. Referring 10 the action Of the
Knights of Labor, he said he was of the
opinion that the decision CT the courts
would undoubtedly affirm his right 10
issue bonds. The bankers present asked
numerous questions concerning the points
at issue. They assured the secretary that
If the legality of the bonds were shown he
could rely on il that alr the bonds would
be taken in New York, Internationally
and above the upset price.
The general report of those present at
the conference was that the proposed
issue was much strengthened by the dis
cussion. One of the members of the
clearing house COMMITTEES said that in the
minds of those who heard Carlisie's state
ment of the case there is now no doubt of
the safety of the bonds as an investment
Their legality. he said, was assured. How
far the issue has been subscribed for could
not be learned. The conference is said to
have been the result OF the withdrawal
Of subscriptions which had been
made. At the conclusion of the confer
ence Carlisle refused to make
any statement. He returned to Washing
ton City by the 6:2o train this evening
A prominent banker stated this afternoon
that he believed when Carlisle returned to
Washington City this evening he was a
much disappointed man. II am certain"
continued the gentleman, ''the secretary
was satisfied after he had fully explained
matters TO the bank presidents that he
would receive positive assurances that they
would buy at least so many blocks of de-
bentures. whereas all he got was, we will
bring it up and discuss il tomorrow at
specially called meeting of directors
WASHINGTON CRY, Jan. M-Arguments
were heard today by Judge Cox. OF the
district supreme court, on the application
OF Master Workman Sovereign, Of the
Knights of Labor. for an order restraining
Carlisle from Issuing eonds ~ proposed.
The applicants for the Injunction were
represented by Senators Allen, of Ne
braska, Judge Jere Wilson. c. c. Cole, of
Des Moines, Ia, and J. w. Mills, Denver,
all Of whom took part in the argument.
The court was asked to compel
Secretary Carlisle to show cause
why the Injunction should not
be granted. Judge Wilson referred to the
fact that there was no other judicial tri-
bunal to which the applicants had resort
under the circumstances. He declared no
other business would sustain as much
injury or damage by the bond issue as that
of the miners. who form large percent
age-30. 600 or more members-of the
Knights of Labor. Though the secretary
in announcing that the bonds would
be issued cited the act of January
IL. 1875, providing for specie pay
ment resumption, as authority for
his action, neither this act nor that of
July II, authorizing refunding Of the ma
tional debt. conferred authority. Counsel
Mills then read the application. II trecites
that the proposed bond issue is illegal be-
cause il is not intended to redeem legal
tender notes; that the act of July IL, 1875.
expressly inhibits further increase of the
bonded debt. while the amendment of
May 81, 1878, withdraws the
power to redeem any more legal
tenders; that there Is already in the trea-
sury SIS. oo0. 900 IN gold, which may be used
for the purpose for which need the bonds
are 10 be sold, and that there Is no law re-
curing main tenance of the gold reserve.
Judge Cox announced that ne would de-
eide tomorrow or Wednesday whether to
issue q rule to show cause Why the In
junction shall not be granted.