The record-union., 1894-01-31
THE BOND QUESTION.
CARIIsLE's POSITION UPHELD BY
THE COURT.
Judge Cox Declines to Grant the
Application of Sovereign for
Restraining Order.
Special to the RECoRD-UNIoN.


WASHINGTON, Jan. 30.-Judge Cox of
the District Supreme Court this morning
declined to grant the application of the
knights of Labor to compel Secretary
Carlisle to show cause why he should not
be enjoined from issuing the S50,000,000
bonds as proposed.
The court in its decision says the-appli-
cation of the knights of Labor asserts
that members of the organization as citi-
zens and taxpayers have the right to an
| injunction; that should the bonds be is
sued the interest practically amounts to a
tax of 81 per head in the country, thereby
resulting in an outlay of $780, 900 for the
knights of Labor. Judge Cox said the
knights, as an organization had no stand
ing in court.
The court continues 'Now, there
never was per capita tax In this country;
no law in force requires the payment of a
direct tax. Should such a tax exist. the
cCmplainants have not shown how they
are property holders. They have no
standing in court as Taxpayers ana no
legal right in question as to the bond is
sue. The claim that the interests OF the
organization are different from the gen.
eral public and would suffer more than
any other class (referring to the claim of
many knights and miners) is grievance
of discrimination, but gives no standing
in judicial proceedings"
Judge Cox then reviewed the laws
bearing on the question. He declared it
was unnecessary to enter into the discus
sion of the rights of the Secretary to make
the issue. The Secretary he said, had
legal authority to redeem the notes when
presented and to issue and sell bonds
when necessary.
The Knights will appeal from the de-
cision to the District Court OF Appeals,
and the case may eventually be taken to
the Supreme Court of the United States.
The Treasury officials received with
unfegned satisfaction the decision of
Judge Cox dismissing the petition of the
Knights of Labor for an injunction
against Secretary Carlisle to restrain him
from issuing bonds.
NEW YORK BANKERS To BID FOR THE
BONDS.
New YORK. Jan. 30.-The bank Off
Gals here have reached the conclusion
that it would be a mistake to allow the
Government bond issue to fail for lack of
support They fear if the issue is not
authority to coin the seigniorage silver in
the Treasury. They also fear the failure
would have bad effect upon the present
Government, therefore President King of
the Union Trust Company has under
taken to form a syndicate and bid for the
entire issue at upset prices. 1t is under
stood Russell Sage and President Olcott
of the Central Trust Company will CO.
operate. and the movement is likely to be
successful. The syndicate has already
agreed to take S25. 100000.
CARLIsLE's TRIP TO NEW YORK.
WASHINGTON, Jan. 30.-Secretary Car
Isle is at his desk in the Treasury De-
partment to-day, but he declined to make
| for publication any statement of his trip
to New York. 1t was officially stated at
the department that the statement at
tributed to the Secretary while in New
York. that if the subscriptions run up to
S75. 600. 600 he intended to sell that many
bonds, was incorrect. 1t is SAID that if
the Secretary had wanted that amount Of
bonds he would have SO stated in his cir
| cular inviting proposals tor them.
Carlisle this afternoon received dis
patch from New York saying that S20,-
| 100000 in new bonds were subscribed for.
He is now confident that the whole issue
will be taken.