The Birmingham age-herald., 1920-08-01
BOND SITUATION
 ID BE INVESTIGATED
 BY THE GRAND JURY
Advisory Board and Mem- bers of Board of Revenue Disagree on Further
 Construction

Jefferson county's bond situation will be taken up by the Jefferson county grand jury tomorrow, when it reconvenes after two days recess. Many witnesses have been summoned to testify before the county jury to- morrow and Tuesday. It is stated that the largest number ever summoned for any two days will appear on this occa- sion.
 According to a statement made yes- terday a special committee from the grand jury was Investigating the bond situation and will make its report to the jury when it meets tomorrow morn ing at o'clock.
 This situa tion was brought about by the inability of the county to dispose of $2,000, 900 worth of county road bonds, when the bottom dropped out of the bond market, 1t is stated. While thu bonds could have been sold for 90, it is pointed out that this is a violation of
 the statute of Alabama. Under this statute no bonds can be sold for less than par nor can they pay more than , per cent interest.
 The report of the advisory committee,
 appointed by the chamber of com merce, when the s5.oo0,Oo0 road bond is sue was carried at a special election in February, created a sensation.
 Members of the board when seen yes-
 terday reiterated their intention of car
 rying on the federal aid projects if this
 could possibly be done. On the other
 hand. they are in favor of continuing
 all road work if any method can be de-
 vised whereby this can be financed. POST DATED WARRANTS President Jerry Gwin of the board
 and Thomas E. Huey were making eff forts to see all contractors of county roads yesterday in an effort to ascer- tain whether they would accept county post-dated warrants at per cent While they were unable to see all con tractors yesterday a number took the
 matter under consideration and expect to notify the committee on this matter Tuesday, In the meantime efforts will be made to place the warrants with local banks or brokers.
 There seems to be no prospect of se- curing funds to complete the fedora aid projects according to members of the advisory committee. Unless the contractors will agree to accept the post-dated warrants in payment fol their work it is probable that even this work will have to be discontinued, ever though the county lose the federal aio money still due. However. they declare that with no funds available to pay fol this work it would be foolish to in ! crease the county's obligations. Int 1 best plan suggested, in their opinion | is to take up the matter with the gov ernment and see if some arrangement cannot be made whereby the work may | be suspended until a future time, wher 1 it can be resumed.
 1 Members of the board of revenue de clare that if the work is suspended lief 1 ferson county will lose the federal ait money, which amounts to s35S,000, an' i in addition will be liable for damage | of several hundred thousand dollars tt 1 the contractors who have been awarded 1 contracts, and who have been working on them for several months. They arr l of the opinion that it would be bette | to lose s150,000 by issuing post-dateC
 warrants at per cent rather than los' l (Continued Page EighD