I found this but I'm not sure how accurate it is. Any anons care to chime in?
MILITARY FLAG WITH THE GOLD FRINGE
Martial Law Flag "Pursuant to 4 U.S.C. chapter 1, §§1, 2, & 3; Executive Order 10834, August 21, 1959; 24 F.R.6865; a military flag is a flag that resembles the regular flag of the United States, except that it has a YELLOW FRINGE border on three sides. The President of the United States designates this deviation from the regular flag, by executive order, and in his capacity as Commander-in-Chief of the military. The placing of a fringe on the national flag, the dimensions of the flag and the arrangement of the stars in the union are matters of detail not controlled by statute, but are within the discretion of the President as Commander in Chief of the Army and Navy." 34 Ops. Atty. Gen. 83.
President, Dwight David Eisenhower, by Executive Order No.10834, signed on August 21, 1959 and printed in the Federal Register at 24 F.R. 6865, pursuant to law, stated that: "A military flag is a flag that resembles the regular flag of the United States, except that it has a yellow fringe border on three sides."
When you enter a courtroom displaying a gold or yellow fringed flag, you have just entered into a foreign country, and you better have your passport with you, because you may not be coming back to the land of the free for a long time. The judge sitting under a gold or yellow fringe flag becomes the "captain" or "master" of that ship or enclave and he has absolute power to make the rules as he goes. The gold or yellow fringe flag is your warning that you are leaving your Constitutionally secured RIGHTS on the floor outside the door to that courtroom.
This is exactly why so many judges are appointed, and not elected by the people. The Federal judges are appointed by the President, the national military commander in chief. The State judges are appointed by the Governors, the state military commanders. The judges are appointed because the courts are military courts and civilians do not "elect" military officers.
Under martial law, you are presumed guilty until proven innocent.
There are a variety of ideas put out regarding the meaning of the fringe on the flag. The most important one from a constitutional perspective is the claim that that flag with fringe is a flag that indicates admiralty law is in effect wherever that flag is displayed, such as in a court room. If true that would mean that courts which have a fringed flag (which is almost all courts in the land) are not Constitutional courts (Article Three Courts) but Admiralty Courts where Constitutional provisions do not apply but rather Admiralty law prevails. Now take that idea and put it together with the clear reality that most of our courts are not following the Constitution as ratified by our founders, but some other form of unconstitutional law such as international law, and you can see why this idea has gained legs in the patriot community. Thus this theory would help us understand the other wise infuriating and treasonous actions of the judicial branch.