Mr. J. J. Knickerbocker, the well known attorney, has the intantion to institute a libel suit before Judge Tuly, against the editor of the Chronicle and Mr. W. S. Forman, in order to establish, whether the accusations brought against Governor Altgeld in connection with the administration of State funds, by the late Rufus Ramsey were confirmed or not. The above named newspaper and Mr. Forman asserted publicly, the Governor, as well as other politicians, among them the Republican candidate for Governor, Tanner, have illegally borrowed State's funds from Ramsey.

After Ramsey's death, they claim that the Governor seretly removed his I. O. U's from the safe and substituted it with cash. Mr. Altgeld characterized this accusation as a falsehood, the other side sticks to their assertion. Through the proceedings, which Mr. Knickerbocker is instituting, the matter should be cleared up. The bondsmen of the late 2treasurer, among them the proprietor of the Chronicle banker John P. Walsh will be called as witnesses and be compelled to tell everything they know in the case. Mr. Altgeld, who is a personal friend of Mr. Knickerbocker, persuaded him to take this step, and the Governor's friends hope, that in this way he will succeed to refute the slander. The legal proceedings in the case, will, at all events, cause general attention.