The daily gazette., 1882-09-08
A LOCAL LIBEL SUIT.
THE "MoRNINo NEWS LIKELY
TO HAVE TROUBLE.
TWO $4,000 GASES ON HAND
Messrs. Kyne and Kenney of the Board
of Education to Seek Redress In Court for
Reckless Charges and Assertions.

Suit was entered yesterday against the
News Publishing Company by William Kyne
and ID. orc. Kenney, members of the Board
of Education, for libel, the claim for dam
ages being $40, 900 each Ignatius Q. Grubb
is counsel for the plaintiffs. To day George
w. Stone, president of the News Publishing
Company will be cited to appear in the case.
The alleged libellous publicationWas made
in the issue of the Nelgs of Tuesday, Septem-
ber 5, under the head of " Startling De-
ficit," in which the paper charged that
800, 900 of the school Boards money had
been Incorporated by the City Council,
and that Messrs. Kyne and Kenney were
parties in the transaction. The stupidity of
the article, highly sensational as 1t was In
its nature, has alredy been shown.
In the course of the article the Ne,0s after
stating that $40, 900 of the 100000 had been
spent for new schools, said :
"The balance of $4,000 was allowed to
remain in bank, the idea being to use it dur
ing the present year in erecting much needed
schools and making improvements to the
old ones that could not longer be delayed.
The unprecedented extravaganza Of the
Water Department, the looseness of manage
ment in the other branches of city govern
ment and the refusal to meet the issue of
financial difficulties by raising the tax rate,
all combined to drain the city treasury to
the bottom. The balance in bank to the
credit of the city was Overdrawn by City
Council; the May and June bills Of the
present year were allowed to lie on the
clerks table unacted upon, and to crown all
the City Council deliberately drew upon the
remaining 900 belonging to the Board of
Education and used that money for other
purposes. City Treasurer Guthrie, not
withstanding that his books showed $40, 900
| to the credit of the board, honored the
drafts, took the money from the bank and
left to the school fund only the credit on
paper. 1t would appear that such an act
was foolish in the extreme, inasmuch as the
most cursory examination of the books
would show the deficiency But 1t was not
intended that this examination should take
place. Further than this the projectors OF
the scheme to borrow $50 900 worked with
| the idea in view of allowing the board to
spend $4,000 only of that money and il
was their deliberate intent to use the
remaining $4,000 to replace in part the
money squandered by Council and thus
render it unnecessary to raise the tax rate
The plan was founded upon bed rock
basis of continued Democratic control
To Mr.. Kyne and Mr. Kenney wai
entrusted the principal part of the scheme
they were to run the school board for the
present year and not a single new building
was to be erected and not a shingle put or
the roof or u hinge on the door of an old one
In this way there would have been no de
mand for the $4,000 during the presen
year and some new expedient was TO hav'
been adopted to carry the deficiency owe
next year. When the Democrats met il
caucus on the appropriations In May tn
question of this deficiency was discussed
and in the understanding of several member
at least it was decided to raise the amoun
by taxation. After consultation with tn
party leaders that idea was abandoned a
being impolitic on the eve of a municipa
election, and it was decided to say nothin.
of the deficiency, but trust to Democrats
victory and carrying out of the Kyne
Kenney program
"But the election was a Republican vic
tory and although a majority of the Boar
| of Education were Democrats they were no
of the ring stamp and refused to follow tn
lead of Kyne and Kenney. These two mel
strenuously endeavoring to carry out tn
part of the program assigned to them Tough
bitterly all propositions for new schoc
houses or extensive repairs to existing ones
They were overwhelmingly defeated an
contracts awarded for building and repair
to the amount of about $1S, 600. At this tim
every one supposed that the Board had
fund of S20, 900 on which to draw for thos
expenses. The time for payment drew nes
and to the dismay of the board an investig'
ton showed that instead OF $40, 900 they ha
nothing, that there was no fund from whic
to pay these contractors bills, ,and that as fl
as can be seen now the general appropriate
of the board is not available tor this purpos
The suit will be pressed, it is stated, to
speedy trial.