The Birmingham age-herald., 1921-09-15
CHICAGO SUES TWO
 PAPERS FOR LIBEL
Thompson Administration Says Journals Killed City'S
 Credit on Street Work
By Associated Press

Chicago September 14.-Whether a city or other municipal corporation may sue a newspaper for libel al- leging damages approximating the value of the entire establishment of the latter, and, through a possible verdict for the full sum, virtually put the newspaper out of business, will be one of the chief issues in the case of the city of Chicago against the Chicago Tribune, which is to be called for hearing September 22.
 The suit filed in circuit court in December 1920, after the bitter Illi- nois republican primary campaigi of that year, asks damages of s10,- 000000, alleging that published charges against the financial part of Mayor William Hale Thompson's ad ministration had impaired the city's credit and hampered the conduct of municipal business. A similar suit has been filed against the Chicago Daily News.
 In each instance the city sued in its corporate capacity.
 Thirty-siX news items or editorials published by the Tribune between June Is and September 15, 1920, are cited by the city attorneys as the basis for the suits. Many of them declare flatly that the city was of script" for paying city employees. In several instances it was stated that the city treasury faced huge deficit and one item quoted Lieuten- ant Governor Oglesby, candidate for the gubernatorial nomination, as fix ing this figure at $16.0o0,oo0.
 Quote Letters to Editor
 There were also two exceprts from other Illinois newspapers as repro duced in the Tribune. one being taken from the Dixon Telegraph. Two let ters ITO the Editor from Tribune readers also were cited as among the alleged libelous publications.
 None of these publications, the city's declaration charged, was pub lished with good motives, but to promote the political and financial interests of the newspaper "and cer- tain other persons and corporations, especially certain public utility cor porations associated with the defend ant and acting in cooperation with it."
 It was charged that the publica- tions were designed to give the im- precision that the city was unw orthy of credit, and that 1t would be ian- gerous to invest in its bonds or to enter contracts with it for the sale of materials, labor Or supplies.
 Give Chicago Property
 To show the basis of the alleged damage the declaration sets forth that in it's activities on behalf of population of 5000, 900, the city op- vt, The documents list of this property includes the Chicago city hall. s9 ro- lice stations, 140 fire engine hous IS, more than $50 motor. vehicles, 146 playgrounds and small parks, about I5 bridges. 2,112 miles of streets with much apparatus used in main- taining them, a waterworks system with six cribs in Lake Michigan and 10 pumping stations on shore, ,nu- nicipal tuberculosis sanitarium and many other properties of great value"
 It is averred that the maintenance and labor necessary to operate these properties cost 50000.000 a year, and that the city also has to Iur- chase about $7,0o0.o00 worth of new property every year, exclusive of school property, which additions gre made largely through the medium of competitive bids. Good financial credit" is named as a necessity for conducting the municipal business, and it is alleged that whatever in juriously affects the city's credit TO- suits in it's having to pay higrer prices for it's materials and restricts the number of competitive bids. The declaration charges that the Tribune attacks on the city's finances caused some persons, firms or corporations, who otherwise would have. bid. to ref ain from doing so.
 The declaration also says many civic Improvements were under con- stdcration or construction at the time of the allged libel, and that 'he city expected to raise funds for these by offering bonds "upon the market to the public" It argues that the proceeds of such bond sales depend upon the price of the securities in the open market, and infers that the alleged libellous publications so i'm paired the city's credit that value of its bonds were depreciated.