The Birmingham age-herald., 1904-06-21
BOND ATTORNEYS REPORT FAVORABLY Birmingham's S200,O0O School Bond Issue Legal THE BONDS BRonGHT PAR A. L. Rich 6 Co.,, Who Purchased the Securities, Now Ready to Turn
 the Money Over to
 the City.
THE BONDS BRonGHT PAR

billion and Hubbard, bond attorneys of New York, have rendered an opinion in writing, declaring the Birmingham issue of bonds to the amount of $2OO,OOO for the purpose of securing funds with which to erect a new high school and two other public school buildings to be legal
 Shortly after the school bond election was held in April committee of the city officials to vent to New York to float the issie. The bonds were sold at par to A. L. Itch & Co. of Cincinnati, with the understanding they were to be dated July l. and the money to be paid to the city early next month. To be on the safe side, however, the officials decided to submit the entire matter to Dillon and Hubbard foI the purpose of investiga- tion, as bond experts, the issue in order that nc ccmpiiea ions might arise in the future
 The opinion of the bond attorneys means that the money is to be sent to Birmingham immediately. and that the contracts for the new buildings are soon tu be let.
 The following is the letter from the at- tcrneys with reference to the bond issue.
 New York. June 1T, 1904. Hon. " M. Drennen, Mayor Birming- ham, Ala.
 Dear Sir-At the request of the city of Birmingham Ala, we have examined into the validity of the proposed issue of SzOOOO0 school bonds of said city said bonds being of the denomination of S1OO0 each, dated July 1, 1904 payable July 1, 1924 bearing interest at the rate of 5 per cent per annum, payable semi-an- nually, said bonds reciting that they are issued under an ordinance adopted by the mayor and aldermen of said city of Bir- mingham and an act of the general as- sembly of the state of Alabama, entitled An act to authorize cities and towns In the state of Alabama to cause elec- lions to be held therein to authorize the issue or bonds for purchasing,or construc- tlng public buildings, sewers, streets al- leys bridges and public school houses and buildings to purchase water works and light plants, or to construct the same and for such other purposes as may be authorized by law; to provide TOT the manner of giving notice of such election, the manner of holding the same. ana the payment of expenses therein in- cured, and to authorize the issue of bonds when at such election the voters thereat shall decide in favor of such bond issue, approved February 25, 1903 We
  nave examined the constitution and stat utes of said state and certified copies of proceedings of said city authorizing the issuance of said bonds
 It Is our opinion that when an ordl- nance has been duly passed prescribing the form Of said bonds and providing for the execution and delivery of said bonds pursuant to a contract of sale of the same at not less than par and accrued interest and when said bonds have been duly signed, sealed, sold. delivered and paid for at not less than par and accrued interest, said bonds will constitute the valid and legally binding obligations of said city of Birmingham, the principal and interest of said bonds being payable out of the general revenues of said city derived from taxation within the limits prescribed by the constitution and stat utes of said state, and from license and occupation taxes, such general revenues being first applied so far as may be nec- essary to the payment of the current ex- penses of the city. Very truly yours,
 DILLON & HUBBARD.