The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-12-06
BOARD TO ACT ON
SPECIAL ELECTION
FOR ROAD BONDS.
Resubmission of SO, 900, 900
UnsoId Road Improvement
Bonds Is Under Consid-
GRAFTON by Board

Action providing for the resubmis-
sion to the qualified voters Of JEFF
ferson county of 100000 worth
of road improvement bonds remain
ing unsold from the original $5,-
100000 issue authorized at a special
election in February 1920 may be
taken by the board of revenue at its
regular meeting this morning.
II resolutions calling for an cleo
tion at which the voters will be
called on to authorize the reissuing
of the remaining $4,000. 900 are adopt
ed, as is considered likely by board
memb ers, the voters will be asked to
authorize the county to dispose OF
the bonds at 6 per cent interest in
stead OF the ) per cent interest au-
thorized under the previous Issue.
Resubmission of the remainder of
the bond issue on a per cent basis
is believed necessary in order to mar
ket the bonds. According to members
of the board seen yesterday. the
question of their resubmission was
gone into at a conference between
members of the board held at the
courthouse yesterday, and ii is likely,
ii was stated, that the matter will be
brought up in the meeting this morn
ing and some definite action taken
in regard to it.
At Higher Rate
Inability to dispose of the remain
der of the bonds at 5 per cent or par
is given as the reason for desire on
the part of at least a portion CT the
board to call an election at which the
voters will BIO asked to authorize the
issue at the higher rate OF interest.
1t is pointed out that sale of the re-
naming $3,000,000 worth of bones has
been impossible with the allowance
OF only per cent interest owing to
the unfayorable condition Of the bond
which has existed ever since the
original issue was authorized and
which has not improved as had been
expected and hoped for.
During the time which has elapsed
since the authorization OF the origi
nal issue the board of revenue has
| been able to dispose of approximate
ly s2,000.0o0 worth of the bonds, leav-
ing 100000 worth unsold.
If resolutions authorizing the re-
submission of the issue are passed.
it is stated, 1t is planned to call the
election for January 80, on which
date the voters of the entire state
will be called on to vote on the re-
submission of the $4,000. 900 state
road bond issue and the soldiers poll
tax exemption amendment to the con-
stitution.
Court Decision
Following inability to dispose of
the bonds authorized on account of
the condition of the, bond market,
the supreme court OF the state de-
cided in test case that under the
Alabama law the giving of more than
8 per cent interest on the bonds was
prohibited and that the board of rev.
enue could sell the bonds only at par.
Following this decision the Ala
bama legislature, at is special session
in 1920. attempted to amend the ex
listing statutes so as to allow the sale
Of the bonds below par, but this en-
abling act was declared unconstitu-
tional.
Whether or not the voters will be
asked to authorize the entire portion
of the bond Issue If resubmitted for
road construction or portion for
other purposes has not been deter
mined. 1t Is known that at least one
member of the board of revenue is in
favor of authorizing only 1880, 900
of the remaining 100000 for road
purposes and devoting the remainder
to the retirement OF floating debt
of 100000 and applying the other
100000 toward the construction of
new courthouse. While other
members OF the board have not ex-
pressed themselves publicly on this
proposition, 1t is believed that the
majority of them favor the use OF
the entire 100000 remaining to
road construction, as provided for in
the original issue. and that the call.
II made, will provide only for use
OF the bonds for road purposes.