People's Pilot, Volume 3, Number 33, Rensselaer, Jasper County, 2 February 1894 — KNIGHTS DEFEATED. [ARTICLE]

KNIGHTS DEFEATED.

Their Appeal for an Injunction Agrainst the Bond l«*ue Is Denied. Washington, Feb. L—Judge Cox, of the district supreme court, has 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 $50,090,000 of bonds as proposed in his recent bond circular. The court’s judgment caused no surprise. The application of the Knights of Labor asserts that the members of the organization as citizens and tax payers have a right to the injunction. Should the bonds be issued the interest will practically, amount to a tax of about one dollar a head on the country, thereby resulting in an outlay of $300,000 from the Knights of Labor, according to the application filed. The, court said there never was a per capita tax in this country. No law now in force requires the payment of a direct tax, though there was one in 1816 and another in 1861. Should, such a law exist the complainants have not shown that they are propery holders. They have no standing in the court as tax-payers and no legal right in the question as to a bond issue. Their claim that the interests of the organization are different from the general public and would suffer more than any other class (referring to the claim that many knights were miners) by the issue is a grievance of discrimination, but it has no standing in judicial proceedings. Consequently, as tax-payers or as miners th? complainants have no standing In Court Judge Cox then reviewed the laws bearing on the question and declared it was unnecessary to enter into a discussion oi the rights of the secretary to make the issue. The secretary, he said, had legal authority to redeem notes when presented and to issue and sell the bonds when necessary. The claimants will appeal to the court of appeals and when that body decides against them to the United States supreme court. There- is practically no doubt that that high tribunal will decide in the same way. Meanwhile Secretary Carlisle will issue his bonds. *r» Secretary Carlisle has received a dispatch iTOt! Jiew York saying that $20,000,000 of the 5 per cent bonds had been subscribed for. The secretary is now confident that the whole issue of $50,000,000 will be subscribed for at 117.25 or higher. Washington, Jan. 31.—1 n the senata Tuesday the resolution of Senator Stewart, (rep., Nev.) declaring the proposed issue of bonds to be without authority of law was taken up, and Senator Stewart addressed the senate in its favor. The significant feature of the discussion was the firm stand .taken by Senator Sherman li? favor of the authority of Secretary Carlisle to issue the bonds. The gold reserve he declared to be a fund which should Lj preserved inviolate; and he thought it'even mandatory, rather than discretionary, with Secretary Carlisle to sell at least sufficient bonds to restore the gold reserve.