The Birmingham age-herald., 1920-06-03
BOND ISSUE IS
 NOT WARRANTED
 STATES BARRETT
Commission President Re ports Unfav0rably on Proposed S1,0OO,O00
 Street Repair Fund

Holding that the issuance of $1,000,00J of bonds for the repair of streets would
 be legally in conflict with the spirit ot the law and financially neither safe nor sound, Dr. N. A. Barrett, president of the city commission, reported unfaVor- ably on the proposed city bond issue yes terday.
 The issuance of the bonds was suggested some time ago by the commissioner of
 street, Henry Page Burruss who sand
 that this sum would lee neetea to re pair the streets of the city. The matter Was held in suspense, pepding report on the financial condition of the city.
 The report was made by City Comp
 troller J. NJ. Jones and turned over to
 Br. Barrett several days ago. With this report as a basis pr. Jarrett declared the bond issue unsound.
 An embarrassing and dangerous prece-
 dent would probably be established if the issue was granted, pr. Barrett said. It would also disturb the solid foundation on financial affairs of the city which the board is gradually effecting.
 No definite action was taken, the mat
 ter being taken under consideration of the entire board until next Tuesday. At thus time. MT. Burruss will reassert the claims of the department for financial
 relief copy of the written report ot
 Dr. Barrett's findings was handed eaeh commissioner.
 THE REPORT You will recall that at conference last weel. of the commission, acting as committee of the whole the proposition to issue bonds of the city of Birming- ham in the amount of Sl,000,000 for street purposes was referred to the president of the board for investigation and repoTt as to the financial and legal aspect of the proposition.
 So far as the legal situation is con- cerned which would affect an issue or this character, 1 give it as my opinloA that the issuance of these bonds would be in conflict with the spirit if not the letter of the law governing our eXpeh- ditures. As I see it. this issue would pc no more nor no less than deficiency Ill revenue bonds and therefore certahhly 1 come within the intent at least or tue statute prohibiting this board from eN- pending in any one fiscal year more rev enue for general purposes than IS re- eeved
 As to the financial aspect while it is true that we could, out of our sinking l fund levy provide for the payment or interest of these bonds, still l doubt the wisdom of imposing this burden on our sinking fund at this time. The propo5l- ton to extend the expenditure Of thus proposed S1 0B,0ON issue over u term Oi five years, consuming $200o0O per annum' means that for five years we are spend ing mainly on temporary street repairs and maintenance of unpaved highways S2O0 000 with the amount of it's interest in excess of our revenue. This, in my judgment. is neither safe nor sound IT. nancing and will tend to disturb the soHd financial foundation which this board is succeeding in establishing in the ar fairs of the city.
 1t is my sincere judgment, too, that the issuance of this s10o000O street bonds might establish an embarrassing anu dangerous precedent. or if any other com missioner should ask for bond issue to
 do certain needed and important work in his department, this board, in gooo
 conscience. would have to grant it,
 ''This. gentlemen, briefly, is my report submit it to you for your consldera-
 ton. without recommendation. I tuily appreciate the tremendous difficulties confronting the commissioner of puopc improvements. as well as our entire board, and I earnestly hope and oeheN1 that a solution of the problem can De found"