The Birmingham age-herald., 1905-02-17
PAUL HAYNE SCHOOL IS UNDER MORTGAGE Mayor Drennen's Plan to Sell
 Property Not Feasible HE EXPLAINS PROPOSITION The Mayor and Aldermen of Blrmlng- ham Executed Mortgage on Paul
 Hayne and Lane Schools
 Several Years Ago.
HE EXPLAINS PROPOSITION

The existence of an ordinance which provided for mortgaging Paul Hayne and Lane public schools has entirely explod- ed Mayor Drennens plan to dispose of the first-named school which is located on the corner of Avenue E and Twen- tieth street. Mayor Drennen proposed to sell the school and the site and with these funds to augment the s25.0o0 building fund now in the bank for the public school to be built in Drennen park at Five Points. Eighty negotiable notes were issued by the Mayor and Aldermen of Birming- ham in July, 1885, amounting to $20,000 and gave a mortgage on the Paul Hayne and the Lane school. the latter being a negro school These mortgages have twenty-seven years yet to run, and It would therefore be impossible to dispose of the property unless the mortgages are cancelled.
 The Mayor Talks.
 My attention has been called to the mortgages on the Paul Hayne school since l made the proposition to the Board of Education," said Mayor Drennen, the
  noon. Of course this finally settles the matter. We are anxious to start work on the Drennen Park school immediately. and therefore could not wait until the legislature meets to give us authority to issue bonds for the purpose of cancelling the public school mortgages.
 T proposed to sell the property for between s5O,OOO and s6o,ooO and add this to the s25,0OO now on deposit 10, the new school. In this way we could erect a handsome school at Five Points, one that would answer all purposes for years to eome.p
 The Ordinance.
 Here is a portion of the ordinance passed by the City Councn on June 5, 1s0l and this obliterates all chance to sell the property
 Whereas, the Mayor and Aldermen of Birmingham, on the first day of July, 1885, issued eighty (S0) negotiable bonds of the city of Birmingham, numbered, conseeu- lively, from one CD to eighty CS0) both inclusive the first fifty t50) being each of the denomination of One Hundred ($1o0) Dollars, and the remaining thirty (30) be- ing each of the denomination of Five Hundred ($5O0) Dollars, bearing interest at the rate of seven @ per cent per an- mum. which bonds were denominated School Bonds" and the payment of which was secured by first mortgage upon the following described real estate, to-wit:
 Lots number nine (9) ten CO., eleven 0D and twelve Q2), in block one hun dred and seventy-three Q73), and lots number eleven CID, twelve Q2) and thir teen Q3), in block one hundred and forty nine Q49 on which are situated the Paul Hayne and Lane public school buildings; all In Birmingham, Jefferson county, Ala bama.
 Said mortgage being dated the first day of July, 1885, and executed, on behalf of said Mayor and Aldermen of Birmingham, by it's Mayor. A. O. Lane, to William A. Walker, Jr., Joseph F. Johnston and Will liam Berney, as trustees in said mortgage. And whereas, it was provided in each of said bonds that the Mayor and Alder men of Birmingham should have the op- tion of redeeming the same at any time after fifteen q5) years from the date therof, at the Hanover National bank, in the city and state of New York. and the Mayor and Aldermen of Birmingham has given notic that 1t will redeem said bonds on the first day of July, 1901, at said Han over National bank
 And whereas, said Mayor and Aldermen of Birmingham, being unable to pay off said bonded indebtedness, desires to re- fund the same by issuing new bonds in exchange for said first mentioned bonds, in accordance with the provisions of an act of the general assembly of the state of Alabama, entitled, "An act to estab- fish a new charter for the city of Bir- mingham, Alabama" approved February 23, 1899, and in accordance with the pro- visions of a special act of the general as sembly of the state of Alabama, approved February 23. 1S99 therefore,
 Be 1t resolved, by the Mayor and Alder men of Birmingham, that, for the pur- pose of refunding said bonded indebted ness, there shall be issued twenty (20 bonds, of the denomination of One Thous- and ($10O0) Dollars each, bearing date July 1, 1901, to become due and payable thirty (30) years after the date thereof with in- terest at the rate of five t5) per cent per annum, payable semi-annually, to be evidenced by coupons attached to said bonds.
 The ordinance then goes on to specify the kind of bond and when the various amounts shall be paid.
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