The Birmingham age-herald., 1921-04-15
JEFFERSON COUNTY
 GIVEN LEFTY JOLT
 BY SUPREME COURT
Legislature Had No Power, De- ciSion Says, to Alter Terms of $5,000,0OO Bond IS-
 sue Already Voted
Fly FRED H. GoRMLEY Montgomery Bureau. The Age-Herald 22I-2 First National Bank Building


 2212 First National Bank Building
 Montgomery, April 14.-(Special9 Jefferson county received another bit ter blow Thursday when the supreme court held that the legislature had no power to alter the terms of the $5,0O0,000 highway bond issue already voted by the electorate of Jefferson county by permitting the sale of the bonds at less than par or by increasing the interest rate.
 In decision which was concurred in by all members of the court it was held that all terms provided by the official call for the election issued by the board of revenue must be compiled with ana this means that Jefferson county's high way project must be held up until there Is an improvement in the bond market.
 voters of Jefferson authorized the bond issue under the code which provided that the bonds should not be sold al less than par and that the interest rate should not be greater than per cent. Failing to obtain a purchaser, members of the Jet- fe1son delegation offered a bill at the special session last September giving the county the right to dispose of the bonds at 95 per cent of par which would in- directly increase the interest rate from s per cent to per cent.
 ACT DOESN'T APPLY
 This bill was approved October 6, put just before the legislature adjourned it passed general act fixing the interest rate at not more than Y per cent and it was approved October s. The court held that the latter act repealed the former one and that relief could come only under the latter act. It then proceeded to show nat tw+3 sections of the constitution were Violated by the provision making the act applicable to all bonds already author ized, but not issued, as well as those to be authorized and issued in the future. The supreme court held first that the act could not apply to issues already au- thorized, because that subject was not included in the caption of the act. Ill the second place, 1t held that the act could not apply in the case of Jefferson's road bond issue because of the previous contract already existing between the board of revenue and the electorate which provided for bonds at par and at an interest rate of not more than per cent.
 Referring to the power of the legislature to change the terms of the bonds, Justice Miller in his opinion for the court sad:
 DECISION QUOTED
 "The voters having fixed by ballot the
 
 rate of interest and under law stating they must not De sold below their face value, it is then beyond the power of the legislature to authorize q higher rate of interest thereon or q sale of these bonds below par The power was in and the authority came from majority of the qualified voters of Jefferson county. When it is expressed, under the law then existing their voice must be obeyed II the bonds are sold. The legislature can asot change the voters will after it is expressed by the majority Of ballots at rhs polls. Gases cited)
 ,'The board of revenue is author szsd to issue s5,000,000 in bonds They Gaunot issue more. They may issue 48sa They can issue none. These mat Ears are in their sound discretion, as ahS necessity may exist for funds for the purpose of constructing public roads in the county. They can sell none below par. No bond must bear interest at greater rate than per cent per annum. They may issue s65u- coo of the 1920 series, provided they are not sold below par and do not bear greater rate of interest than per cent per annum. There is noth- ing in the statute preventing bonds of the 1920 series. authorized by the voters, from being sold after that year.
 VOTE IS FINAL
 -The law requires the amount of the proposed bond issue, the maximum rate of interest proposed to be paid and the time for which the bonds shall run and the purpose for which the bonds are to be issued to be sub mitted to the voters, but it does not re- quire the time within which the bonds must be issued to be submitted to them Their vote on the matters re- Quired by law to be submitted is final p-(Cases citedD
 ''The decree dismissing the bill of complaint is set aside and decree will be rendered directing the writ of in- junction prayed for to issue.'
 MT. Justice Mcclellan wrote a short opinion concurring in the opinion of MT. Justice Miller.
 The general act under which the supreme court passed upon the au- thority of a county to dispose of bonds is applicable to all counties in Alabama, but it is not known whether or not any other county will be af- fected by the decision.