Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1894-02-02
SOVEREIGN FILES HIS BILL AT
WASHINGTON
TO PREVENT THE CONTEM-
PLATED ISSUE OF BONDS.
New Section Incorporated in the Docu
ment-Lawyer Wilson Makes Il
Long Argument-Federal Statutes
Prohibit the Contract Involved in
the Secretary's Proposed Act.


B. Mcclure, of the general executive
board Of the Knights of Labor this
morning, by their attorneys, &. {. Cole,
Of DeS MoineS, Iowa; Senator Allen.
OF Nebraska, and J. Warner Mills, OF
Denver, appeared before Judge Cox,
OF the supreme court Of the District Of
Columbia. and made an application to
file L bill i'll equity praying that an
injunction issue restraining John c.
Carlisle, secretary of the treasury,
from issuing and selling $J0,OOO.O0O in
government bonds, us he has an
nounced his purpose OF doing.
An eXaminatiO Of the bill as filed
shows that certain material changes
and additions have been made to it
by counsel here. These changes, which
did not appear i'll the published alb
Suact, are, first, that Mr.. Mcclure, of
the executive board, is made Il party
to the suit with Mr. Sovereign, both
being citizens and taxpayers Of the
United States; second, the following
allegation is made:
And the said John Griffin Carlisle
as secretary Of the treasury, is now
engaged in and directing the eXpendi-
ttlre OF public moneys of the United
States in the preparation and proposed
placing on market for sale of the I'M
lawful issue Of bonds hereinbefore re-
ferred to, and is threatening and is
about to make further illegal eXpendi-
lures i'll such behalf, and is preparing
ard threatening illegally to expend the
public moneys of the United States
for Instruments Of interest, and also
for the principal Of said bonds all
of which said expenditures and con
templated expenditures are unlawful:
in this. to wit:
That the said bonds constitute or
are intended TO constitute contracts
with the United States, which said
John Griffin Carlisle. secretary aforc-
said, is by law prohibited from making
us being contracts binding or intended
10 bind the government to pay the
principal and interest of said bonds.
the issuance Of said bonds being with
out any authority Of law, and no APP
preparation having been made to pay
the same or any part thereof. OF any
expenditure incident thereto, and all
of the acts hereinDeforc set forth being
to the special prejudice Of these com
plainantS as citizens and taxpayers of
the United States and also to those
whom they represent in this action"
\ second insertion in the bill prayS
that the injunction may be made to re-
strain the secretary from expanding
the contemplated bonds.
Jere Wilson, Of Shellabarger & Viii
son, of this city. opened for the pc
tiioners. The question involved, he
said. was of very great gravity and
Of supreme Importance. The aDplica-
ton was for 4 rule upon the secretary
of the treasury to show cause why he |
should not be restrained from issuing
S50,0OO,000 in bonds. thus and to that
amount increasing the debt Of the
United States. 1t was neither required !
nor proper at this time to go deeply |
into the merits of the ease further |
than to show that there was a primal /
facie case for the issuance Of the rule !
applied for.
Mr. Wilson read abstracts from an
editorial in the New York Tribune |
of yesterday i'll which it was argued |
that If there was any doubt as to the
secretary's authority to issue the con-
templated bonds it would be much bet |
ter to have that question decided at |
once and for all before further compl- |
cations arose. This was the purpose
of the petitioners in coming to this |
court, which was the only court under |
the law to which citizen could apply |
to restrain an administrative officer
from doing that which he ought not
to do.
The bill was then read to the court !
by Mr. Mills.
Mr.. Wilson. reSuming his argument. |
read several authorities and decisions /
tending to establish the jurisdiction of !
this court il matters Of this charac- |
ter and making it the duty of the !
court to resu ain a public officer from |
doing what he proposed to do. if in !
the judgment of the court there was |
no authority Of law for his contem- |
plated act
He also read and commented upon |
section 1882 of the revised statutes, |
which in effect prohibits the making
IF any contracts involving the expen-
diture of public moneys by an officer
IF the government, except in certain
specified contingencies, arising in the
war and navy departments, unless an
had been made therefor
Mr.. Wilson argued that the preparl-
ion of these bonds involved not only
IN expenditure which was clearly in
libited by this act but the bonds
vas as clearly prohibited.
Judge Wilson quoted from the act
IF Jan. IA, 1879. for the purpose of
showing that the only purpose for
which the bonds authorized therein
,ould be used was for the redemption
If legal tender notes then outstanding;
ilso from the act Of July IA. 1870. to
show at the bond issue there aIl-
horized was for the sole purpose of
he United States.
Senator Allen spoke briefly in sup
lort of the motion He said the laws
# the United States were the chart
md compass Of the secretary OF the
and he was the creature of
he law which clearly defines his every
luty and obligation. The act of Jan.
4. 1875. provided for one issue of |
'onds for ore special specified pur- |
lose. that Of redeeming outstanding |
cgal tender notes in excess of $780, |