The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-12-16
BIDS ON COUNTY
ROAD BONDS WILL
Be RECEIVED TODAY.
Board of Revenue to Decide
On Contract of Dunn Con-
Struction Company-In-
junction in Allegiance

Bids on approximately $4,000
worth of county road improvement
bonds carrying five per cent interest
will be received by the board of rev.
enue at its meeting this morning.
If price satisfactory to the board
is obtained for the bonds it is ex-
pected that the major portion of the
proceeds will be used for he con-
struction of approximately eight
miles of paving on the North Bes-
semer road from Bessemer to Fair
field for which the r. G. Dunn Con-
struction company holds contract
with the board dated April %, 1920
calling for construction price of
1857, 659.75.
Whether or not the board will fl
nally decide to carry out the original
contract with the Dunn Construction
company or repudiate 1t and stand
possible suit for damages is expected
to develop from the proceedings this
morning, at which the Dunn Con-
struction company is expected to be
the chief bidder for the bonds adver-
tised.
Resolutions were passed by the
board of revenue sometime ago au-
thorizing the carrying out of the con-
tract provided sufficient road i'm
provement bonds could be sold at a
satisfactory figure to cover the cost
of construction.
Bonds at Par
Although members of the board
have not declared their attitude in
regard to the matter, 1t is believed
that the board CT revenue will not
be satisfied with a sale of the bonds
at par SO far as those necessary to
cover the cost of construction on this
strip of highway Is concerned. but
will demand that If Dunn bids in the
bonds to cover his contract that he
bid them in at par and a sufficient
premium to cover the difference in
construction cost between the date
of the original contract and now
when 1t is said, cost of material and
labor is materially lower than when
the contract was awarded.
If demand for a premium is made,
which is said to be favored by board
members. 1t is probable that Dunn
will be required to add an additional
10 per cent premium to his bid be-
fore the board will definitely vote to
allow him to go ahead with the con-
tract.
Final determination as to what ac-
ton will be taken in the matter. 1t
is stated, will be made by the board
today.
Injunction Proceedings
Injunction proceedings to restrain
the board from carrying out the con-
tract on the ground that the differ
ence in the price of labor and ma
terials now as against their cost in
April. 1920, when the contract was
let would amount to approximately
$4,000 in the total construction cost
of the project, have not been filed.
Percy, Benners and Burr. local at
torneys. who protested to the board
against carrying out the original con-
tract on behalf of clients who are
said to believe the terms of the orig
inal contract, on behalf of clients who
are said to believe the terms of the
original contract are too high, in
view of present construction condi-
lions, are believed to be pursuing a
policy of 'watchful waiting to see
what final action the board takes on
the matter before filing the injunc-
ton proceedings or abandoning
them.
Difference in Cost
While members of the board claim
law firm as between now and the
time when the contract was let are
too high and claim that they would
save approximately $4,000 by release
by the Dunn company from obliga-
ton to carry out other contracts let
at the same time which they say
would more than offset the differ
ence in the cost of the Bessemer con-
tract they claim that they welcome
judicial determination of their
rights and obligations in regard to
the matter.
On the other hand the construction
company claims that 1t was ready
and willing to carry the contract at
all times and that failure of the
board ef~revenue to order the work
done because of inability to sell suf-
ficient bonds to coer the cost of con-
struction was no fault of theirs. They
also claim that 1t would be unfair
to them for the board to repudiate
the contract now as they turned
down other work that could have
been obtained during the period re-
ferred to because they expected to be
engaged in the carrying out of this
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