Arizona republican., 1921-09-15

for the suit Many of them declared
 fiatly that the city was broke. Oth-
 CTS referred to the use of scrip fer
 paying city employees. In several iIi-
 stances it was stated that the city
 treasury faced a huge deficit and one item quoted Lieutenant Governor
 Gglesby, a candidate for the guber-
 material nomination, as fixing this figure at $16,000,000.
 Tribune's Motive Attacked
 There were also two, exerpts from
 other Illinois newspapers as repro duced in the Tribune, one being taken
 from the Kendall County Record tn l
 the other from the Dixon Telegraph. Two letters ito sthe editor" from the Tribune readers were also cited.
 None of these publications, the
 city's declaration charged, was pub
 lished with good motives, but to pro-
 mote the political and financial inter
 ests of the newspaper, "and certain other persons and corporations, es- pecially public utility corporations associated with the defendant and acting in cooperation with it.''
 It was charged that the publica- tions were designed to give the inl- pression that the city was unworthy of credit and that it would be dan gerous to invest in it's bonds or to en- ter into contracts with it for sale of materials, labor or supplies.
 To show the basis of the alleged charge the declaration sets forth that in it's activities on behalf. of popu- lation of 100000 the city operate es property worth s35o. .0o0. The documentary list of this property in- cludes the Chicago city hall, 29 police stations. 40 fire engine houses, more than $50 motor vehicles, 156 play grounds and small parks, about 7s bridges, PIP miles of streets with ap- Iparatus used in maintaining them. a water works system with six cribs l in Lake Michigan and 10 pumping stations on shore, a municipal ta- berculosis sanitarium, and many other properties of great value.
 City's Credit Involved
 1 It is estimated that the materials and labor necessary to operate these properties cost $50, 900, 900 a year and l that the city also has to purchase about $7,o00,000 worth of new prop erty every year, exclusive of schoo property. which additions are made 1 largely through the mediums of com petitive bids. Good financial credit is named as necessity for conduct ing the municipal business and it fl alleged that whatever injuriously af fleets the cityss credit results in it l having to pay higher prices for it materials and restricts the numbel of competitive bids. The declaration
 charges that the Tribune attacks or the city, finances caused some per sons. firms or corporations who oth- 1 erwise would have bid. to refraii 1 from doing so.
 l The declaration also points ou1 | that many civic improvements were l under consideration or construction 1 at the time of the alleged libel and 1 the city expected to raise funds fol 1 these by offering bonds upon the market to the public" It argues that 1 the proceeds of such bond sales de- pend on the price of the securities in the open market and infers that the alleged libelous publications so i'm paired the city's credit that the value Of it's bonds was depreciated Claim City Was Injured
 The declaration emphasizes that the city has various funds including 1.-the corporate fund, proceeds from special assessments and a water fund l It acknowledges that lat some times there may not be enough actual cash on hand in the corporate fund to meet all the current obligations of l the. city" but it ayers that the other l funds have been at all times suffi- cient to meet obligations charged against them. It alleges that the Tribune, however. attacked the gen. eral financial standing of the city making no distinction between thu corporate fund and other sections O the city treasury.
 The city's declaration asserts tha | In 1920 the municipality had been de prived of s7,000, 900 income from sa. I loon licenses and that in addition t this. there had been heavy increases