Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-01-29
The Knights Of Labor and the Bond
Issue.
THEY ASK THAT CARLISLE Be ENJONED
Proceedings in the Supreme Court
of the District Today.
GROUNDS FOR THE ACTION.

g.
ury Carlisle to prevent him from issuing
the sJ0.0000o0 of bonds, was presented to
Judge Cox in Equity Court No. 1. ana
counsel for the Knights of Labor. Senator
"m V. Allen Of Nebraska, Messrs Shella-
barger and Wilson, Messrs. Siddons and
fsalston. Judge c. G. Cole Of Iowa and MIR.
j. W. Miller Of Colorado, proceeded 10 state
the reasons why the Injunction should issue.
MI. Jere NJ. Wilson explained that the OBJ
1ect of the bin was to secure a rule on the
Secretary of the Treasury TO compel him to
snow cause why he should not be restrained
from issuing bonds of the United States to
the amount Of s500OoOOo and thereby in
creasing the debt of the country to that ex-
tent The question at issue was a most
important one, involving the authority OF
the Secretary to issue the bonds As to the
secretary's right to so do there was a grave
DOUBT and the question should be settled
now; and as only in the Supreme Court OF
the District Of Columbia could a citizen of
the United States question by legal proceed
inss the legality of the acts of an executive
oncer OF the government the bill had been
filed here.
Grounds Of Complaint.
At Mr.. Wilson's request Mr. ]. w. Mr,s
OF Denver. Col. Of counsel for the com.
plainants. then read the bill At the outsee
the bill declares that:
James Richard Sovereign, general uaster
workman, and Thomas b. Mcclure menu
Der or the executive board of the Kniehts
ofLabor of the United States of America
who sre citizens and tax payers of the
United States of America and who sue for
themselves and also in hehalf of the menu
bers of the Knights of Labor "a voluntary
association). who are similarly situated and
VINO nave a common and general Interest
IN the questions involved herein, and who
number about 100000 and are too numeroua
70 be named. bring this. their bill against
T,in, 2S.,n Grinin carlisle: Secretary Of the
treasury OF the United States Of America
ana thereupon your orators show unto
your honors that they have an interest IN
TINS. their suit in equity. other and Different
from the interests of the gene -al public
Tor that of their number very MANY thon
sands are engaged and interested in the
mining OF silver in many of the states and
Serrlto,ies 4a, OF the United States. town:
Colorado, Nevada, Montana, Idaho. OREGON
California, Wyoming. South Dakota Utah.
Arizona and New Mexico; that their fnte--
ests engagements and employments in said
inuustry embrace substantially the entire
America Va
And that the prejudice and DAMAGE m
.neIr SAID interests is other ana 'oiTerent,
as Wen as greater than the injury or DAM
age suffered by any other business or ern-
pioyment within the United States. That
saAo interests are especially aEected be-
cause the product of their labor may law.
Iully become and in great proportion does
pecome the basis ana material from which
the majority OF our coin Is made ana a
discrimination against that product which
IS tne necessary effect OF the proposed issue
and sale OF bonds, cause your ora tors in
jury and damage other and different from
.hat winch is suffered by the general in-
dustries OF the country"
The Pro Rata Cost.
The bin further states that the issue os
bonds as proposed involves an Indebtedness
approximately of s54.ooo.ooo. including prin-
cipai and interest to be paid on SAID ponds,
making an excess of one dollar per captta
OF the entire population Of the United
states. on which, upon the basis of pro
rata your orators beng citizens and tax
payers OF the United States OF America.
would be compelled to pay more than three
hundred thousand dollars"
That the act approved January Ia. INA
which the defendant gives as authority for
the Issue, does not. nor does the act ap-
proved July IA, 1870, entitled An act TO au-
thoriIe The refunding of the national debt
WHICH iast named act is referred TO IN the
act approved January IL 1879. give or con-
him any authority whatever for the issue
OF SAFE Dy subscription or otherwise OF tns
oonds proposed and offered by the defend-
ant as stated and shown in his said offer
icr subscriptions TO said ponds''
Inc PHI further AYERS that the proposed
actlon by the defendant is illegal ana vtfn-i
out any authority in and contrary 10 he
statutes of the United States. and tnat IN,
SAID bonds are not proposed TO be issued
or sold 10 redeem the legal tender in United
states notes, which was the sole and only
purpose Tor the issue as contemplated and
proNded Tor In the said act approved JAM
uary IA, 1879. And. further. that by the
act OF July Ia, 1870 there was an exnress
fS<lla of
as TO increase in any way whatever the
bonded debt of the United States: that tie
act OF July 4, 1870, only contemplated and
authorized the issue of said bonds Cor fhe
purpose Of refunding the then existing
debt OF the United States and it only pro-
Vided for the issue OF one bond for the pur-
pose OF taxing up another bond OF equal
amount; that the proposed action OF the
defendant is without any necessity or sarc-
tion therefor, in the condition OF the
treasury of the United States. for that .Iow
there is I'm the United States treasury the
sum of about s15.0oO.000 OF United States
gold coin. which may rightfully and prop
erly be applied and used for the purpose or
purposes for which the bonds as offered
Tor subscription are proposed to be sold
Mr.. Wilson's Argument.
The reading OF the bill occupied about
an hours time. and upon its completion
Mr.. Wilson again addressed the court. stat
ing there was no doubt of the courts juris-
diction. although he was perfectly aware
that the court would not prohibit an
ecutive ofiiecer from exercising a purely
ministerial duty wholly within his discre-
ton. but the present case. said Mr.. Wilson,
presented case where such an officer
sought 20 do that Of which the complainants
contended he had no lawful authority.
Hence the complainants, citizens and tax
payers, We're wholly authorized in seeking
to prevent the alleged unlawful act of the
Secretary of the Treasury by the suit today
Instituted by them. In support Of this
contention. Mr.. Wilson read several author
tiles which he claimed left no doubt in the
matter
But the most important question in the
case at issue was. said MIR. Wilson, the
right OF the Secretary of the Treasury to
issue the bonds. There could be not the
slightest doubt that such a bond WAS a
contract between the government and the
purchaser. Section 1872 OF the Revised
Statutes, said Mr. Wilson. prohibited the
making of any contract involving the ex-
penditure of money by officers Of the Goy-
ernment except when expressly authorized
by law The Secretary OF the Treasury,
explained Mr.. Wilson, based his authority
to issue the proposed bonds on the act OF
January Ia 1873. the resumption act.
Little Pleasantly.
But, continued Mr.. Wilson, the purpose
of the bonds aufhorfzas bv that ~, ond "a,