Arizona republican., 1921-02-16
COUNTY WON'T STAND s32,500 OF S183,00O LOSS ID TWOHY BROS.

eclaring they did not feel they had '"e right to dispose of county funds III that manner, the AIaricopa county board of supervisors vesterdav turned oown the proposition made to them by special chamber of commerce com nnittee that the county assume sS2,5 cl the SiS3.0O0 loss sustained by the \ iwohy Brothers Construction company 1n agreeing to pay the difference be- tween SS4h and par for the undeliv cred bonds of the S4,o00,oo0 issue of Msricopa county road bonds.
 The resolution was presented to the board of supervisors by the committee several days ago.
 nthe agreement recently entered into at Chicago Twohy brothers ac- cepted the bonds at 94' rather than see tne repudiation of the contract by the bond purchasers and a long delay in the county's good road program through litigation to force the bonding syndicate to make good it's contract 10 buy the bonds at par plus accrued interest anda premium. At the same time Twohy brothers guaranteed to Maricopa county par for the $3,000, 900 worth of undelivered bonds, together with accrued interest and premium. Through this agreement they sustained
 
 Judge Twohy told the board of su- pervisors yesterday that Twohy broth CTS had assumed the obligation when the bond buyers weer about to repudi- ate their contract recently in order/ to avoid tying up the road work in the county for many months until the mat ter had been threshed out by litigation. The agreement made by the construc- ton company, he said, was made in or der that the work could go on without a stop.
 The agreement by Twohy brothers was the aftermath of the dismissal of the suit brought by John o. Dunbar in the federal courts in Chicago asking for an injunction to restrain the bond buyers from paying the remaining S3- 000.000 due on the bonds. 1t developed recently that the bond buyers them selves were the real instigators of the suit and after it's dismissal they threat ened to repudiate their contract and throw the undelivered bonds back on I<the county.
 N County Attorney Shepherd and At torney Bullard went to Chicago in Jan uary to effect a settlement of the suit and secure the payment of the remain ing bonds. After their return the board of supervisors adopted resolutions rec commended by the attorneys, appointing the National Bank of Arizona escrow 
 original contract sothat the entire is- sue of bonds might be delivered tc the purchasing syndicate by Septem- Der 21, 1921, the first payment of S1,- 900. 900 to be made within 10 days aft CT the agreement an dthe other install ments to me made on June l and Sept 21.
 In accordance with this agreement the board of supervisors yesterday re < ceived credit advice from Chicago uthrough the Valley Bank of Phocni, yQr $979,5O4.76 as the first payment ol [ne bonds. The credit advice was turned over to Vernon $. Wright county treasurer. The payment con sists of S963,0O0 fer the sale of th' bonds, accrued interest of $S,6S0.3S. ant premium of $7,S24.3S. The remaining undelivered bonds now held by thu Central Trust company of Chicago a' escrow holders will be shipped to thu National Bank of Arizona, the new es crow holders