The record-union., 1894-01-30

Special to the RECoRD-UNIoS.
New YORK, Jan 29.--By direction Of
Secretary Carlisle Assistant Treasurer
Jordan sent out invitations to thirty bank
Presidents and officers of other promi-
nent financial institutions, asking them
to meet the Secretary of the Treasury aG
the sub-Treasury. The conference lasted
for an hour and half. At its conclusion
several of the bankers present said that
Carlisle had spoken at length on the ac-
ton Of the Judiciary Committee, saying
that he thought this resolution showed
the legality of the issue. He also said he
believed that the resolution would fail TO
pass. Referring to the action of the
knights of Labor, he said he was of the
opinion that the decision of the courts
would undoubtedly affirm his right to
issue bonds.
The bankers present were asked nu~
merous questions concerning the points
at issue. They assured the Secretary that
if the legality of the bonds was shown,
he could rely on it that all the bonds
would be taken in New York uncondI-
tionally and above the set price.
The general report of those present at
the conference was that the proposed is
sue was Inucl strengthened ny GuS UlSCuS-
sion. One of the members of the Clear
ing-house Committee said in the minds
of those who heard Carlisle'S statement
there was no doubt of the safety of the
bonds as investments. Their legality,
he said, was assured. How far the issue
had been subscribed for could not be
learned.
The conference is said to have been the
result OF the withdra wal of subscriptions
which had been made. At the concln-
sion of the conference Carlisle refused TO
make any statement about the confer
ence. lie returned to Washington by
the 500 train this afternoon.
A prominent banker stated this after
noon that he believed when Carlisle re-
turned to Washington this evening he
was a much disappointed man. Il atif'
certain" continued the gentleman, that
the Secretary was satisfied that when he
fully explained matters to the bank Presl-
dents he would receive positive assur-
ances that they would buy at least so
many blocks Of the debentureS, whereas
all he got was, we will bring it up and
discuss it tomorrow at q specially called
meeting of the directors.
APPLICATION FOR A RESTRAINING ORDER.
WASHINGTON, Jan. 29.-Arguments
were heard to-day by Judge Cox of the
District Supreme Court on the applica-
ton of Grand Master Workman SOYer-
eign of the knights Of Labor for an order
restraining Carlisle from issuing bonds
as proposed. The court announced l5
would render decision tomorrow or
Wednesday.
The applications for the injunction
were represented by Senator Allen Of
Nebraska, Judge Jere Wilson, G. G. Cole
of Des Moines, Iowa, and j. w. Mills of
Denver, all of whom took part in the
argument. The court was asked to COM
pei Secretary Carlisle to show cause why
the writ asked should not be granted.
Judge Wilson referred the fact TO other
judicial tribunals to which 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 a large percentage of the $4,000 or
more members OF the Knights of Labor.
Though the Secretary in announcing
that bonds would be issued, cited the Act
of January ii, 1875, providing tor specie
payment resumption as authority for
this action. Neither this Act or that Of
July IA, 1870, authorizing the refunding
of the national debt conferred this au-
thority.
Counsel Mills then read the application.
The application for the injunction recites
that the proposed bond issue was illegal,
because not intended to redeem legal
tender notes; that the Act of July IA,
1915, expressly prohibits further in
crease of the bonded debt, while the
amendment of May 81, 1S79 withdraws
the power to redeem any more legal
tenders; that there is already IN the
Treasury S75, ,000,0G0 gold, which may be
used for the purpose for which need
bonds are to be sold; that there is no
law requiring the maintenance OF a gold
reSarVa