The Birmingham age-herald., 1920-07-02
Decision of Supreme Court Cause of Crisis In County Affairs-Special Meeting of Joint Boards Called for Today

At a special meeting of the board of revenue of Jefferson county and the advisory com mittee to be held this morning at II o'clock some action will be taken to ascertain just what can be done at the present time to relieve the financial condi- tion of the county.
 This was brought about by the decision of the Alabama supreme court that the county could not legally pay a 10 per cent commission to John B. Weakley and Eugene Fies of the Alabama Bond Company, original purchasers of the bonds, for negotiating their sale.
 Three alternatives face the board In regard to the $2.oo0,ooO road building pro- J gramme, which are absolute abandonment , of any further work, the issuance of ! county road warrants bearing 8 per cent | interest to run not longer than ten years, i or for the contractors 70 whom the con- ! tracts have been awarded, or whose bids have been accepted. to take the road ini- l r,rn 1art de tr, ,apf ar 1 their work.
 ] Members of the board admitted ester day that the decision of the supreme court l brought about a serious situation, but l they were of the opinion in that s6O0,0D worth of the road bonds authorized by the 1 special election February 16, had been is- sued plans could be devised to relieve the | condition.
 1 President Jerry Gwin of the board stated that he had in contemplation plan to relieve the situation which he will present to the board and the advisory 1 committee at the meeting today. He declares that while the situation is se- rious, it is not alarming, and no serious injury to the credit or finances of the county will result.
 l Thomas E. Huey, member of the board. stated that he would oppose any further | attempts to carry out the road building 1 programme of the county until the re- | turn of more normal conditions In .ne l bond market. Then the bonds can be dis posed of at par in accordance with the l state law and the ruling of the supreme l court He will insist on his original con- 1 tention at the time the question of issuing ' the warrants for the commission was 1 made, he said, which was to postpone i the execution of further contracts until l complete and comprehensive plans De reached for financing all outstanding and | a 1 The county is faced temporarily at least | with the inauguration of a policy Of rigid 1 economy, it is stated. as there is a dehcit of approximately S300,000. brought about by running behind for the pas three or i four years. This, it is stated. might in- volve the closing of the free labor road camps, numbering six. and the use ex- clusively of convicts on these roads. This
 would save approximately 5000 month, it is estimated, to the county. general eduction of expenditures in other oe-
 partments wherever possible will be 1 considered, and if this is done, 1t IS ex- pected that some offices not deemed ap- solutely essential will be abolished.
 | It is probable that the county will be forced to abandon it's building campaign for the present or issue funding bonds to pay off warrants issued for such worK, according to local attorneys. Paving war l.rants issued for such work, according to S
 be used to pay existing debts, it is stated
 In the opinion of the board there are only
 two chances to continue the road work,
 and that is by the issuance of warrants
 to bear per cent interest or to get the
 contractors to accept the bonds at par
 in payment for their work.
 If the latter is adopted it will necessi- tate an agreement with the contractors, as they will have to cancel their old con
 tract and make new bids. It is pointed I out that this will be no violation of the
 state law or the ruling the supreme court as in this manner the bonds will in reality be sold for par.
 Unless one of these plans is adopt ed there will be nothing for the county to do but discontinue the road i'm Ii provement work for the present and wait until the market conditions be- |l co me normal and the bonds can be dis \ rosed of at par on the open market At the present time there is no market
 for county road bonds at par 1t IS II pointed out as bond buyers will not |i purchase county bonds at per cent \ when United States government gold
 bonds can be bought for 6 per cent.
 MT Huey stated that Jefferson coun-
 ty is rot the only county suffering as |) result of inability to dispose of bonds, If but declared the county bonds with in If terest at 5 per cent could not cope with the government bonds which paid per cent.
 FLOATING DEBT |, It is stated that the deficit in the
 floa ting debt of the county amounting
 to about $500, 900 is an accumulation
 running over several years and in-
 creasing gradually. The county has
 Leen running behind. it is declared
 each year at the rate of $25o.000 for
 the past three or four years. This de-
 felt has always been met by the pledg-