Arizona republican., 1921-02-04

Instead of paying par with accrued interest and premium for the bonds, however, the bonding companies are actually paying 941a- The discount will be absorbed by the road con tractors. In other words, Twohy Brothers have incurred the actual if nancial loss of approximately $1S3,0OO in becoming a party to the agreement.
 Contractors Assume Loss
 Under the original sales contract the bond purchasers agreed to pay par with accrued interest and premium for the entire $4,000.000 road bond is sue. One million dollars worth of these bonds were delivered to the bonding companies shortly after the contract was signed, and the money forwarded to Phoenix. The remaining $3,000,- 900 worth of bonds, constituting those involved in the agreement entered into last week, were held in escrow by the Central Trust Company of Illinois. De- livery of these bonds to purchasers was later restrained by filing of the Dunbar injunction proceedings.
 By reason of the agreement entered into between the bond buyers and Twohy Brothers the contractors agreed that if the bond buyers would carry out their contract with the county of Maricopa, they, the Twohy Brothers, would absorb and pay to the bond buy CTS the difference between the price of the bonds, as sold, and the price If they had been sold at 9412.
 This concession will wipe out all profits of Twohy Brothers in carrying out the road program in this county and will undoubtedly leave them on the wrong side of the ledger when they have completed their contract" MT. Bullard declared last night.
 Rather than impede the Maricopa county road program and incur the financial loss that would necessarily attend a complete repudiation of the contract entered into by the bond buy CTS, however, Twohy Brothers made this concession"
 BuIlard's Statement
 Mir. Bullard, attorney for Twohy Brothers, when interviewed last night relative to a rumor that the bond money would not be paid over to the bond buyers. said:
 The attitude of the bond buyers has been correctly reported by the eve ming paper in interviews with County Attorney Shepherd and the county at torney's indignation is amply justified
 When Twohy Brothers aScertained that the only alternative to long con- unued litigation with the bond buyers and a hold up of the road building prof. ect was a settlement of some kind with the bond syndicate, they determined rather than see the building of roads delayed for period of from one year to a year and a half, they would agree to be responsible for the bond discount demanded by the bond buyers.
 "rhey did not come to this conclusion until they had determined that at the present market the bonds would not bring over 94 if Maricopa county hao to take the bonds back and resell them. They therefore agreed to be re- sponsible for the discount on a basis of the bonds having a market value oi 94h.
 "Thereupon the bond syndicate out the contract with Maricopa coun- ty to pay the county in full as agreed except 1t would pay one-third of the unsold bonds, premium and accrued interest, within ten days; one third or June 1 and the last third Sept. l.
 Tt was further agreed that until taken up the bonds should betrans- ferred from the Central Trust Com pany of Illinois and be placed in es- crow in the National Bank of Arizo- na in Phoenix
 
 "Twohy Brothers feel that this atti- tude on the part of the bond buyers is an imposition, but they believed tha it was better for them to submit thar to see Maricopa county involved il expensive litigation and the building of the roads come to a standstill. The arrangement made will wip out practically all of Twohy Brothers profits on the contract, but will say 4y~<~ q T terest money, and they are in hope that Maricopa county may conclude t relieve them of a proportionate par ! of the loss which may accrue to tn contraction through the deal as closed
 We feel sure that if the county at torney and the board of supervisor ! find that they can legally do so the | will relieve us of some part of tn burden placed upon us.
 Tn conclusion, wish to complimen the county on its legal representative MT. Shepherd. We worked togethe harmoniously all the time we were Chicago and he displayed an energ and activity in behalf of the count ! that was commendable"
 That the injunction proceeding brought by J. o. Dunbar were, i truth, a court action Instituted by tn bond purchasers themselves to proven if possible. sale of the bonds, was or of the outstanding developments of th conferences in Chicago, Mir, Bullar said last night.
 Morris J. Townley, attorney for NJ Dunbar at Chicago in the suit, was, i fact, attorney for the bonding compa nies, MT. Bullard asserted, and, a such, was instrumental in the filing the suit. The ''black interests Ia ter became involved, he said, and too the action.
 As a result of the agreement entere into at Chicago several days az County Attorney Shepherd and Attor