Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-01-30


Judge Cox, OF the District Court on tho
application Of Grand Master Workman
Sovereign and II. II. Mcclure, o. the
| knights OF Labor, for an Injunction TO
restrain Secretary Carlisle from issuing
| $50, 600, 600 OF bonds as proposed in his
recent circular. Judge Cox reserved
his decision, and announced that to-
morrow or Wednesday he would state
his decision in tho case.
Only n score of persons heard tho ar
guments. The applicants for injunc-
tion were represented by Senator Allen,
OF Nebraska; Judge Jero Wilson, c. c.
! Cole. of DesV Moines. Iowa, and j. w.
Mills, Of Denver, Colorado, all OF whom
took part in the argument. The court
was asked to compel Secretary Carlisle
to show cause why the writ asked
should not be granted.
Judge Wilson, In opening the case,
referred TO the fact that there was no
other judicial tribunal to which the APP
| picants had resort under the clrcum-
stances. He declared that no other
| business would sustain as much injury
or damage bv the bend issue as that OF
| a
! of the 300, 600 or more members OF tho
Knights OF Labor. Though the Secre-
! tary In announcing that bonds would be
Issued, cited the act OF January Ii, 1878,
! providing for specie payment resump-
ton as authority for his action, neither
this act nor that OF July II, 1870, au-
thorizinR the refunding of the national
debt conferred the authority.
Counsel Mills then read the applica-
tion. The issue OF the bonds as pro-
posed" cited the application. Involves
an indebtedness approximately OF S75,-
600, 600. including principal and inter
est. Your orators complain that on
January II, 1894, the defendant, John
Griffin Carlisle, Secretary OF the Treas
ury, caused TO be Issued, published and
offered for public subscription an issue
OF United States bonds To the amount
OF $50. coo, OO0 redeemable In coin at the
pleasure of the Government after ten
years from date OF issue, but bearing
Interest at per cent. per annum and
dated February /, 1894
Orators further show that the pro-
posed action for the issuance aud sale
OF bonds offered by the defendant IL IL
legal without any authority and con-
trary TO the statute Of tho United States
la that the bonds are not proposed TO
be issued or sold TO redeem the legal
tender United States notes. Further,
that by the act OF July II, 1870, there
was an express exhibition upon the Is
sue OF any bonds so as 20 increase In
any way whatever the bonded debt OF
tho United States. IL Is also averTed
that the act OF January IA, 1875,
was amended by that OF May 81, 1873.
so as 10 withdraw from the Secre-
tary OF the Treasury tho power
TO redeem any more OF said legal tender
United States notes, and that there
wero outstanding when that act took
effect S3iG, 900, 900 OF legal tender &. s.
notes. IL Is further shown that there
Is no demand now nor has been any
practical possibility that a demand will
or can be made for any further redemp-
ton OF the legal tender notes. The
proposed action under the published
offer for subscription is not only
without authority Of law and
contrary thereto, but without neces-
sity or sanction IN the condl-
tiOn Of the United States treasury for
there is in the treasury SO, 900 OF
United States gold coin which may
rightfully and properly be applied and
used for the purposes for which the
bonds are offered for subscription and
are proposed 20 be sold. Neither the ne
cessities or convenieDces Of the Govern
ment requires issuance OF the bonds
while such issue and sale are prohibited
by law. But now the defendant com
| binlng and cOnfedofatiug with divers
persons at present unknown pretends
that the issue aud sale Is neces-
sary 70 maintain ae1OO. 900. 900 gold coin
reserve for resumption or other
purposes, whereas. there Is no
law or authority requiring such re-
serve. Nor is such reserve desirable or
practicable. All Of these actings and
| pretences are contrary 20 equity and
good conscience. And that an injunc.
ton may Issue against the defendant,
hls cOnfedeTates or employees against
issue and sale OF the bonds aud from
| eGpendlng public moneys In prepar-
inR aud placing on the market for
sale the issue Of bonds and In paying
any instalment Of interest on
| the principal, may 10 please the court
20 grant unto your orators the writ 90
| subpoena % John Grifiin Carlisle and
| cOnfederates and agents, By a certain
day, under certain penalty, % appear
before this honorable court IN chancery
| sitting, and then aud there 20 Ansver
! the premises and further 20 stand TO
and abide such orders and DEGREES a.
shall be agreeable 70 equity aud good
conscience"
Counsel Wilson, In continuing bis ar
RumeDt, discussed ~ length the mean
in9 of the acts OF Congress bearing on
bonds and defining the secretary's
| authority. He declared that there was
no question a. % the Jurisdiction OF the
| court in the matter and urged that the
| mpOrtance Of the secretary's action de-
manded Immediate Judicial restraint
Senator Allon, who followed, referred
20 the reserve fund az a mere caprice OF
the Secretary, who, be said. was with
out authority and absolutely powerless
20 issue obligations OF the government.
After the arguments had been con-
cluded, Judge Cox announced that he
I would decide tomorrow or Wed
/ whether 70 issue the rule asked.