Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-09-15
City's Suit Against the Tri-
bune for $4,000, 900.
Damages viii Be Called
for Hearing Sept. %,
CASE is 0UTGROWTH
OF RECENT PRIMARY
Balm Asked for Approximates
the Value of the Establish
ment; Court Has Knotty
Problem to Solve.
iBy The Associated Press J


city or other municipal corporation
may sue newspaper for libel, al
leging damages approximating the
value of the esta olishment of the
latter, and, Though Il possible ver-
dict, Tor the full s,.1l. virtually put
the newspaper out of business, will
be tne of the chief issues in the
case of the City of Chicago against
the Chicago Tribune, to be called
for hearing September %.
The suit, filed in circuit court In
December, 1920, after the bitter IL
linois republican primary cam
paign, asks damages of $40, ,00),
alleging that published charges
against the financial part of Mayor
William Hale Thompson's admin
had impaired the city's
credit and hampered the conduct
of municipal business. A similar
suit has been filed against the Chi
cago Daily News. In each instance
the city sued in it's corporate Ca
pacity.
Thirty-six Items Cited.
Thirty-six news items or edito-
rials, published by the Tribune be-
tween June 15 and September Is,
1920, are cited by the city's attor-
neys as the basis for the suit. Many
of them declared flatly that the city
was broke" Others referred to
the use Of scrip for paying city en-
ployes. In several instances it was
stated that the city treasury faced
q huge deficit and one item quoted
Governor Oglesby. a
candidate for the gubernatorial
as fixing this figure 4.
SIC, 100000.
Excerpts From Other Papers.
There were also two excerpts
from other Illinois newspapers as
reproduced in the Tribune, one De-
ing taken from the Kendall County
Record and the other from the
Dixon Telegraph.
Two letters 10 the Editor" from
Tribune readers were also cited.
None of these publications. the
city's declaration charged, was
with good motives, but to
promote the political and financial
interests of the newspaper, 'and
certain other persons and corpora
tions, especially certain public util-
ity corporations, associated with
the defendant and acting in coop
Grafton with it.
1t was charged that the publica-
tions were designed to give the i'm
preston that the city was unworthy
of credit and that it would be dan
gerous to invest in its bonds or to
enter into contracts with it for the
sale of materials, labor or supplies.
Basis of Alleged Damage.
To show the basis of the alleged
damage the declaration sets forth
that in its activities on behalf Of
a population of 1900, 900. the city
operates property worth $350,000.-
900. The documentary list of this
property includes the Chicago city
hall, thirty-nine police stations, 140
fire engine houses, more than $50
motor vehicles. 146 Fairgrounds
and small parks, about rs bridges,
2,112 miles of streets with ;.ppara-
tus used in maintaining them, a
water works system with six cribs
in Lake Michigan and ten pumping
stations on shore. municipal
sanatorIum and many
other properties of great value"
1t is averred that the materials
and labor necessary to operate
these properties cost $50,000.000 a
year and that the city also has to
purchase about $7.000.0O0 worth of
new property every year. exclusive
Of school property, which additions
are made largely through the
medium of competitive bids. Good
credit is named as
necessity for conducting the mu-
nicipal business and it is alleged
that whatever injuriously affects
the city's credit results in its hav-
ing to pay higher prices for its ma
.erials and restricts the number of
bids. The declaration
charges that the Tribune attacks on
he city finances caused some per-
sons, firms or corporations who
otherwise would have bid, to re-
train from doing so.
City's Credit Impaired.
The declaration also points out
hat many civil improvements were
under consideration or construc-
lion at the time Of the alleged libel
and that the 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 on the price of
the securities in the open market
and infers that the alleged libellous
so impaired the city's
credit that the value of its bonds
were deprecated.
The declaration emphasizes that
the city has various funds, includ-
ing the corporation fund. proceeds
from special assessments and
water fund. 1t acknowledges that
''at some times there may not be
enough actual cash on hand In the
corporate fund to meet all the cur
rent obligations Of the CITY," but it
AYERS that the other funds have
been at all times sufficient to meet
obligations charged against them.
It alleges that the Tribune. how
aver. attacked the general financial
Of the city, making no dis
.inction between the corporate
'und and other sections of the city
.reasury.
Fund Not Wasted.
The city's declaration asserts that
n 1920 the municipality had been
deprived of $7.000.000 income from
'aloon licenses and that in addition
10 this there had been heavy in
,reases in the prices of labor, ma
.erials and supplies. Sin conse-
Iuence whereof Its corporate funds
nay not be sufficient to meet all
current obligations chargeable
against It for 1920"
IT asserts. however. that the fund
1ad not been wasted and that its
Continued on Page Two.)