The age-herald., 1900-08-10
WILL EXCHANGE
 BONDS FOR COUPONS
Arrangements Made to Meet De- ferred Interest on City's Debt.
THE CITY COUNCIL ACTS
Contract To Be Entered Into With Stei- her Bros, Who Will Act as Agents $5o,ooo of Re-
 funding Bonds

Tho City Council last night authorized
 the Mayor to sign a contract with Steiner Brothers of this city by which they shall
 take the $269,000 of per cent thirty-year bonds 10 be issued by the city next Mon day, and exchange same for outstanding deferred interest coupons. The contract also stipulates that Steiner Brothers shall take up and deliver certain other bonds of the city bearing interest at per cent. and per cent, respectively, receiving therefor an equal amount of per cent. bonds. Steiner Brothers further agree to use their best efforts to place $2OO,OOO of bonds at per cent. to run fifteen years $5O0OO of which are to be used in the building of school houses and the balance for city hall and jail.
 The resolution adopted by the Council, which authorizes the Mayor to sign the contract with Steiner Brothers, provided that if any bids for the $269,0o0 of 1onds should be received by tomorrow noon the city shall have the right to accept any one of these should it see proper to do so, and in that case the contract with Steiner Brothers shall not be binding.
 The agreement when the Council ad- Council adjourned the night before was that it should convene at 7:30 last night, but at that hour there were only eight members of the Board present.. Mayor Drennen and Aldermen Kerr, Altman and Moore of the special finance committee held a conference in the Mayors office with Sig. Steiner of Steiner Brothers, which lasted until S15, at the expiration of which the Mayor called the Board to or der. There were present Mayor Drennen and Aldermen Wheeler, Rainbow, Kerr, Meighan, Moore, McNally, Altman, Heidt, Thach, Jones and Daly.
 Committees Report
 Before resuming the investigation of the charges against J. T. Mullin, Chief of the Fire Department the bond question came up on the report of the special committee. Alderman Altman submitted the following report for the committed:
 "ro the Honorable Board of Mayor and
 Aldermen of the City of Birmingham.
 Your committee heretofore appointed to sell bonds of this city for the purpose of paying off the unpaid interest coupons, amounting to $269 600, maturing by con
 tract on the 18th day of August, 190O beg leave to report follows:
 After due consideration the Committee decided that the exigencies of the case de- manded that in addition to advertising said bonds it was best for the committee to go to the city of New York and make an ef- fort in person to effect the sale; where upon the undersigned, Drennen, Kerr and Altman, did go to said city-the under signed Moore being prevented by business reasons from going; that after dilligent eff forts to do so, it was found impossible to make q sale of bonds at the rate of inter- est prescribed by the Board, notwithstand- ing the assistance of some of the best bond dealers in said city. Several reasons were given the committee why said bonds were unstable; among them the pendency of Presidential election, the existence of the Philippine trouble, the probability of a Chinese war, and the fact that the city had failed to pay its full interest ac- cruals and had obtained an extension for l part of them Whether these reasons or others contribute in whole or in part to the result, it is unnecessary as well as unprofitable at this time for us to express an opinion. In the opinion of your com mittee good faith on the part of the city leaves but one thing to be done namely. the issuance of bonds to the amount of S2b9,O ,O00 upon the terms ana conditions named in the contract entered into in the summer of 1895 in exchange for a like amount of unpaid interest coupons. With the wisdom of that contract or it's neces sity at the time we have nothing to do. We are in no way responsible for its cre- alton, can we say with the lights be- fore up now that some other or better plan could have been devised and executed; | but we do know that it is a solemn obliga- ton of the city of Birmingham entered | into by her lawful authorities, and we know of no valid reason for refusing to l comply with it.
 "We attach thereto a contract which | speaks for itself, and we recommend that you, by appropriate resolutions, adopt it and make it effective.
 U. J. ALTMAN, "W. M. DRENNEN, "R. H. KERR,
 "WALTER MOORE" Contract With Steiner Bros. "The State of Alabama, Jefferson Coun- ty.-It Is agreed between Steiner Bros, d corporation, and the Mayor and Aldermen of Birmingham Alabama:
 "First-That said Steiner Bros. shall eX- change the bonds of said city for the out standing interest coupons of the said city, aggregating $269,000 and payable August 13,