Power of school boards to approve bond of contractors. 340. The approval of the bond of a bidder for the erection of a school building is entirely within the discretion of the board of school directors, and the court has neither the power nor inclination to interfere with the exercise of that discretion, except in cases of gross abuse of it. The members of a school board are as well, and in most cases better, able to determine the sufficiency of a bond than the court. If they have any doubt about the sufficiency of a bond offered for their approval, it is their duty to the public to refuse to approve it, and if it is an honest doubt, it is not material whether it is well founded or not.24 Void contracts. 341. A contract made between a corporation and a board of school directors to build a school building is illegal and void if a member of the school board is also a stockholder in the corporation, such contract being in violation of sec. 66 of the Act of March 31, 1860.25 Authority to contract. 342. Parties dealing with the officers of a school board are bound to inform themselves as to the right and authority of such officials to bind the district in making contracts for supplies.26 Awarding contracts. 343. School directors are not required to advertise for bids for the erection of school houses, or to award the contract to the lowest responsible bidder.27 Not required to take bids for heating. 344. It was held that a school board is not required to take bids before letting a contract for heating a school house, but may let the contract in any manner it may deem proper if this discretionary power is not abused. 28 24. Fritchey vs. School Directors, 19 Pa. C. C. 388, 1897. 25. Elmwood Lumber Co. vs. Frey, 19 Pa. C. C. 56, 1897. 26. Rutledge vs. McCue, 10 Kulp 57, 1900. 27. 28. Taylor vs. School District, 4 Lack. Leg. N. 231, 1898. Unrecorded acts not void. 345. At a meeting of the board of school directors, 22d September, 1849, the directors, being all present, unanimously authorized and directed Thomas Templeton, president of the board, to enter into an article on behalf of the directors, with John McBride for the building of a school house in the township. In pursuance of those instructions, Thomas Templeton, as president, and on behalf of the board of directors, made an agreement in writing, under seal, with the said John McBride, to build for the plaintiffs a school house, in the said township, as specified therein, and to finish it in May, 1850, for which the directors were to pay him $220.00. The article was lost, but it was testified that it was signed by the president of the board of school directors, and by McBride, with a seal to each name. McBride built the house, and the directors having paid him the whole amount of the consideration, except about $20.00, brought this suit to recover damages, both on account of defective materials and defective work. The lower court instructed the jury that the recorded minutes of the school directors were the only evidence of their acts, and that their acts, as a board, could not be proved by parol. On appeal Supreme Court reversed the judgment and awarded a new trial. Justice Lowrie said: "In School Directors vs. Cline we held that school directors are a public body, bound to keep a record of their proceedings, and all their acts should appear on record,' and this is true but this is not a declaration that their unrecorded acts are void. It indicates the duty of the directors to their constituents, and not to those with whom they are contracting a duty the neglect of which may be of serious consequence to the district or to the directors themselves, but upon which contractors with the directors do not rely, and by which they are not intended to be affected, and to the neglect of which they cannot object." "The administration of the public business relating to roads, poor, and schools, can always be best performed by township officers; and, unaccustomed as many of them are to the forms of conducting the business of public bodies, their acts must be treated as valid when found to be the result of joint consultation, even though the form of recording them has been omitted." 29 29. School Directors vs. McBride, 22 Pa. 215, 1853. CHAPTER XVI. INDEBTEDNESS. 346. School board may borrow money............. 347. 348. PAGE 143 Amount of indebtedness limited by the constitution.............. 143 No matter how small the excessover the constitutional limitation, the increase shall be restrained........................ 349. Without an election, decree of court authorizing indebtedness over 2 per cent. is null and void....... 350. Not a violation of the constitution whereby adjusting indebtedness between new and old district an indebtedness exceeding two per cent. is charged against one.......... 351. Resolution of school board to lay au annual tax for support of library not an increase of indebtedness under the constitution..... 144 144 144 144 146 352. What the word "indebtedness" shall include....... 353. Calculating assets and liabilities to determine indebtedness.... 146 354. Statement of indebtedness to be published annually............. 147 355. Annual tax for the payment of interest and debt required by the constitution.......... ........ 356. Debt may be increased by vote. Manner of payment. Statement......... 147 147 357. 358. Provisions of the acts providing for an increase of indebted- 359. Notice of election on question of increase. Statement. Election........... 150 360. Result of election. If for increase, tax to be levied for pay ment.... 151 361. Act of April 18, 1895, limited increase of debt at any time to two per cent...... 152 362. Bonds may be redeemed before or after maturity with consent of holders............ 152 363. Refunding and redemption of existing indebtedness incurred prior to April 28, 1875.. 153 154 364. Bonds issued since April 18th, 1895, validated.... 355. Bona fide purchasers of school bonds or other securities. School district cannot deny statement to repudiate bonds... 154 366. Where debt is lawful, though some provisions of the act are not complied with, court will protect innocent purchasers of bonds. 155 367. Illegality of assessment does not invalidate bonds........ 368. Court of common pleas has authority to authorize debt under act of 1871............ 155 155 369. Power of the court of common pleas to adjust indebtedness..... 156 370. The act of 1871, above quoted, not repealed by the act of 1874. 156 371. Court may appoint an examiner to take testimony where petition is presented to borrow money.................... 372. Issuing of bonds in pursuance of centralization.......... 373. How to validate indebtedness created by school directors without assent of electors...... 157 157 158 374. Duties of corporate authorities. Notice......... 377. When debt shall become valid. Tax to pay debt.... PAGE 380. Adjustment of indebtedness where new districts are formed by the erection of boroughs out of townships; where township has been merged into more than one borough, etc. Court, sitting in equity, to adjust and apportion indebted ness......... 381. Act of June 24, 1895, constitutional.............. 158 159 159 160 160 160 161 162 382. Measure of value of school property in adjusting indebtedness. 162 383. Court may pass upon the claims of third parties iu adjusting indebtedness....... 162 163 384. Court may appoint auditor to report upon adjustment..... 385. Notice to persons to present claims. Failure to present, etc... 163 386. Court to make necessary rules for collection and payment of the adjusted indebtedness...... 164 387. Court may appoint receiver to whom money shall be paid. Duties of...................... 164 388. How indebtedness and balance in the treasury shall be cred ited......... 164 389. Costs, how paid..... School board may borrow money. 165 346. For the purpose of erecting school houses or purchasing ground whereon to erect school houses, it shall be lawful for the directors or controllers of any district to borrow money at a rate of interest not exceeding six per centum, and issue bonds therefor in sums of not less than one hundred dollars each.' Amount of indebtedness limited by the constitution. 347. The debt, of any county, city, borough, township, school district, or other municipality or incorporated district, except as herein provided, shall never exceed seven per centum upon the assessed value of the taxable property therein, nor shall any such municipality or district incur any new debt, or increase its indebtedness, to an amount exceeding two per centum upon such assessed valuation of property, without the assent of the electors thereof, at a public election in such manner as shall be provided by law.2 I. Act May 8, 1854, Sec. 22, P. L. 617. |