Election. Tickets. Time of holding. Expenses.

375. Such election shall be held at the place and time and under the same regulations, as provided by law for the holding of municipal elections, and it shall be the duty of the inspectors and judges of such election to receive tickets, either written or printed, from electors qualified under the constitution of this state to vote in such district, labeled on the outside "increased debt," and containing in the inside the words "in favor of debt as already increased," or against debt as increased," and to deposit said tickets in a box provided for that purpose as is provided by law in regard to other tickets received at said election; and the tickets so received shall be counted and return thereof made to the clerk of the quarter sessions of the proper county, duly certified, as is required by law, together with a certified copy of the resolution and the advertisement; and the said clerk shall make record of the same and furnish a certified copy thereof, under seal, showing the result, to the corporate authorities of such school district, and the same shall be placed of record upon the minutes thereof. The corporate authorities of such school district shall in all cases fix the time of holding such elections on the day of the municipal or of the general election, unless more than ninety days elapse between the date of the resolution or vote desiring such increase and the day of holding the said municipal or general election. If any other day be fixed for such election the expense of holding the same shall be paid by the school district for the benefit of which it shall be held.31

Election to be governed by existing laws.

376. In receiving and counting and making return of the votes cast, the inspectors, judges and clerks of said election shall be governed by the laws of this Commonwealth regulating municipal elections, and the vote shall be counted by the court as is now provided by general laws governing municipal elections; and all the penalties of said election laws for the violation thereof are hereby extended to and 31. Act June 10, 1897, Sec. 2, P. L. 139.

shall apply to the voters, inspectors, judges and clerks voting at and in attendance upon the elections held under the provisions of this act.32

When debt shall become valid. Tax to pay debt.

377. Whenever, by the returns of such election, it shall appear that a majority of the votes cast is in favor of making valid the increased debt, such debt shall thereupon become valid and of binding force; but the proper authorities in said school district shall, before issuing any obligations therefor, assess and levy an annual tax, which tax shall be equal to at least eight per centum of the amount of such increased debt, and which shall be sufficient for and be applied exclusively to the paying of the interest and principal of such debt within a period not exceeding thirty years from the date of such increase, and the moneys arising from such tax shall be applied annually, as far as the same may accumulate, to the redemption at par of said outstanding obligation.33

Recall of bonds irregularly issued.

378. Where any school district in any borough or township has heretofore issued bonds or other evidences of indebtedness, without having first submitted the question of increasing the indebtedness to the electors of the district, when such submission was made necessary by law, such bonds or other evidences of indebtedness shall be returned and canceled before the issuance of other bonds or evidences of indebtedness made valid by such election as herein before prescribed.34

Where act shall not apply.

379. The provisions of this act shall not apply to any case where, by judicial decision, the bonds of any school district shall have been declared invalid. 35

All acts or parts of acts inconsistent herewith are hereby repealed. 36

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 indebtedness.

380. Whenever any school district has been or may hereafter be formed as aforesaid,37 or whenever any school district has been or may hereafter be entirely merged into more than one school district as aforesaid,38 any court of common pleas, of the proper county, sitting in equity, shall have power, upon the application of any one or more creditors of the school district or districts of said township or townships, or upon the application of the proper authorities of the school district or districts of any said township or townships, borough or boroughs, or either of them, by a suit or suits in equity, to ascertain the indebtedness of the school district or districts of the said township or townships at the time of the formation of each of the school districts of said boroughs respectively, and to equitably adjust and apportion said indebtedness between the school district or districts of said township or townships and borough or boroughs, and between the several school districts of the boroughs into which any township shall have become merged, as aforesaid, and where any school, real estate and movable property belonging to the school district or districts of said township or townships are or shall be within the bounds of any such new district. The said court shall further determine, on hearing, whether an undue proportion of the real estate and movable property belonging to the old district or districts are within the bounds of the new district and, if so, how much money shall be paid therefor by the new to the old district or districts, and the court shall thereupon decree the proportion of said indebtedness which each of said school districts shall pay and the amount of money, if any, which the new district shall pay to the old district or districts for any undue proportion of the school property within the bounds of such new district. In making said adjustment

37. Note.-See Supra, Sec. 37, p. 14, CHANGES IN SCHOOL DISTRICTS, Sec. 1, Act June 24, 1897, P. L. 259.

38. Note.-See Supra, Sec. 38, p. 14, CHANGES IN SCHOOL DISTRICTS, Sec. 2, Act June 24, 1895, P. L. 259.

as applied to each of said new school districts reference shall be had to the time of the formation of such new school district and to the debts existing at the end of the current school year in which it was formed, whether since paid or not, and also to the several amounts of school taxes then unexpended and the said adjustment shall be based upon the assessment of said township or townships for the year in which such new district was formed: Provided, That in ascertaining said indebtedness, neither pending actions nor claims against the school district or districts of said township or townships, founded on tort, shall be included, unless the same shall in the meantime have been prosecuted to final judgment.39

Act of June 24, 1895, constitutional.

381. It is not in conflict with Article I., Sec. 6 of the constitution, providing that trial by jury shall be as heretofore and the right thereof remain inviolate.4°

Measure of value of school property in adjusting indebtedness.

382. Where a division of property is to be made between two school districts created by the erection of a new district out of part of an old one, the proper ratio of distribution is the assessed values of taxable property in the respective districts.

In determining the value of school buildings the aud itor should value them by evidence of what they are worth as school houses, provided they are worth more for that than any other purpose. The mere market value is not the

test.41

Court may pass upon the claims of third parties in adjusting indebtedness.

383. "Does the act of 1895 authorize the court to determine the rights of third parties and adjust their indebtedness as against the municipalities? At first blush, it seemed not, and upon the argument we were of the opinion

40. Parker Twp. School Dist. vs. Bruin Boro. School Dist. 13 D. R. 769,

1901.

41. Darby vs. Sharon Hill, 2 D. R. 485, 1892.

that it could not. But after examination the authorities were convinced that the act of assembly gives that power. The School District of Parker Township has invoked the power of the court sitting in equity to adjust the indebtedness between it and the School District of Bruin Borough.

"We took jurisdiction, and have spent many days in attempting to do what was requested by the plaintiff; must we now suspend until the courts of law can dispose of the contentions of third parties with the school districts? We think not. It would be an affectation of learning to cite cases that hold when a court of equity once has a case within its grasp, it not only has the power but it is its duty to dispose of all questions arising in the case." 42

Court may appoint auditor to report upon proper adjustment.

384. Where a borough is created out of part of the territory comprised in another borough, the court of quarter sessions has jurisdiction, under the act of June 1, 1887, P. L. 285, to appoint an auditor to report upon the proper adjustment of the property and indebtedness of the school districts of the two boroughs.43

Notice to persons to present claims. Failure to present claims, etc.

385. Three months public notice shall be given under the order of said court to all persons having claims against the school district or districts of said townshp or townships, excepting claims in pending actions and claims founded on tort, as aforesaid, to present the same on or before the day therein named, and all persons not presenting their said claims on or before the said day shall be forever debarred from enforcing collection of the same, said notice to be published in not less than two newspapers of the proper county, if there are so many printed in said county, or if there be but one newspaper printed therein, then said notice shall be printed in the same and shall be published in any other manner directed by the said court: Provided however,

42. Parker Twp. School Dist. vs. Bruin Boro. School Dist., 13 D. R. 769, 1901.

43. Darby Borough School District's Appeal, 160 Pa. 79, 1894. See Darby vs. Sharon Hill, 2 D. R. 485, 1892.