Evening star., 1898-09-30
SUIT OVER WAR LOAN
Secretary Gage Required to Answer
to Proceedings.
ALLEGED REFUSAL TO DELIVER BONDS
William H. Wharton of New JERSEY
the Complainant.
CONTENTS OF PETITION

| William H. Wharton of Jersey City today
| hled in the Supreme Court of the District
| of Columbia a petition for mandamus to
| compel Mr.. Lyman ]. Gage, Secretary of
| the Treasury of the United States. to de-
| liver to him to the Produce Exchange
| Trust Company of New York certain bonds
of the recent S2O00o0,o00 war loan which
| were subscribed for by the plaintiff.
In the petition it is alleged that Secretary
| Gage, June 13 last signed and issued a
circular. designated and known as Depart
| ment Circular No. 1O1 division of loans
and currency, inviting subscriptions from
| the people of the United States for 5000
| GoN0 of the 2 per cent loan authorized by
| the act of Congress to provide ways and
! means to meet the war expenditures. The
! circular is given in full.
| The petitioner, who is represented in the
proceedings by eX-Secretary ]. G. Carlisle
| states that no regulations. except such as
We're contained in the circular, We're pro-
| mulgated or adopted by the defendant as
| Secretary of the Treasury concerning the
| loan or the manner of subscribing or pay
| ing for or issuing the bonds. and that while
! the circular was outstanding and in full
| force and effect. July s, 1S!IS the petitioner
| made and signed a subscription on form
prescribed and sent out by the Treasury
| Department for coupon bonds to the
| amount of $500, and a the same time exc
| cuted power of attorney to the Produce
| Exchange Trust Company of New York
| authorizing and empowering that company
to pay for the said bonds in accordance
| with the requirements of the circular and
| TO receive the bonds when issued
| Agreement Entered Into.
| The subscription and power of attorney
| he placed in the hands of G.. b. Wiehtman.
| to make contract with the trust COMPANY
| to advance a sufficient sum of money to
pay for the bonds and to receive and hold
| the same as collateral to secure the repay
| II ent of the money to the COMPANY with
| interest thereon. In accordance with the
| agreement thus entered into, the trust com
| rany, July II, lS!tS, forwarded the plaintiff
| w narton,s subscription and power of attor-
! ney tC Mr.. Gage, Secretary Of the Treas
| u,er, VINO now holds the same and at the
| same time paid to the treasurer of the
| United States, for and on account of the
| subscription, the sum of S10fo, being . per
| cent of the whole amount, as required by
| the circular
/ Shortly after this, it is alleged Secre-
| tary Gage decided that the petitioner was
| was entitled to have and receive the bonds
| subscribed for by him as aforesaid and
| then and there awarded and allotted the
| same to him and caused notice of such
| award, officially signed by F. a. Nanlerlip,
| assistant secretary of the treasury, to be
| sent to the petitioner.
| Amount Paid
The petitioner further states that in ac-
| cordance with the requirements of the bond
! circular and the notice that bonds to the
| full amount of his subscription had been
| allotted to him, the sum of $10463 was
| paid through the trust company to the
| treasurer of the United States On account
| OF the subscription, and being 20 per cent
| of the amount thereof; and on September
| Il another installment of SlO6.2o was paid
| to the treasurer on account being another
| 20 per cent of the same with interest from
whereby he
| came and now is the owner of coupon bonds
! to the amount of sos. being 10 per cent
! of the whole amount subscribed for, and is
| entitled to have the same delivered to the
| Produce Exchange Trust Company for him.
| secretary's Alleged Refusal.
The petitioner claims that the trust COM
pany has no interest in the subscription or
| the bonds, except the right to receive them
| from the defendant and hold the
security for money advanced with the in
| terest thereon. Notwithstanding the prem
| ises, Secretary Gage, although requested
| so TO do, has refused and still refuses, it is
| alleged, to deliver to forward said bonds
| or any part of them to the Produce En-
| change Trust Company, or the petitioner
| or to any other person for him, and il is
| alleged is about to attempt, or has at
| tempted, to cancel the award and alot-
| ment, reject the subscription and deprive
petitioner of his property in the bonds
| without due process of law, or any process
|
| Justice Cox granted a rule requiring Sec
retaTy Gage to show cause on or before
| October Il at 10 o'clock am, why a per-
| emptory writ of mandamus should not be
| issued as prayed.
| The bonds in question, it is understood,
are a portion Of those held up by the
treasury Department the ground that
the subscriptions Were not bona iide but
| We're made at the instance and for The
beneht OF large corporations. Much inter-
| est will attach to the suit and the outcome
Will be closely watched.
Second Suit Entered.
Geo. Is. Wightman, the agent mentioned
| IN the above suit, acting between Wharton
| and the trust company has also entered
| suit in equity against Secretary Gage seek
| ing to restrain that official from annulins
or setting aside the award of S335, $40 worth
of the per cent war bonds which were
subscribed by the plaintiff for different
parties in lots Of $500, $540 $3.50 and 5000
each. He executed power of attorney
authorizing the Produce Exchange Trusi
Company to pay for and receive the bonds
The facts set forth in this suit are the
same as in the proceedings for a man
damus. This case has also been set for a
hearing October IA.
DEATHS AT PONCE.