The daily gazette., 1877-06-26
FIRST EDITION!
SchOOI BOARD Finances,
LEGAL OPINION AS TO THE POWER
OF THE BOARD TO BORROW
MONEY.

OF THE BOARD TO RoRpow
MONEY.
A question having recently arisen in
the minds of certain members of tba
Scnooi Board as to the right of tbe
BOARD, under It's new charter, to borrow
money, d committee was appointed to
secure legai opinion upon this point
Ihe committee secured Messrs Victor
Dupont and w. q. Spruance. E,ors
who were to have presented an onin,on
last week, at special meeting of the
Board held for that purpose. but the
'law's delays" INTERVIEWED, and the oni n.
ion was not received until the regniar >
meeting OF the Board, last evening. The
questions propouDded to the counsel bv
the committee were as follows:
F1rst-Have the School Board or the
FINANCE Committee the right to borrow
money 10 meet contracts or debts incnr-
req under said charter, such borrowed
money 10 De returned or paid out of said
years appropriation.
Second-ls the Council bound nv the
provisions of said charter to i've MS s65,.
100 for 1877, as stated, as a basis In future
years. II so, is the amount to be paid AT
any particular time, or at the option of
Council. 'p'''" VI
Third-Have the City Council the
right to offer the $4,000 bonds, provided
Tor, below par, We, the Board losing the
difference.
Your respectfully,
Sam'l A. Price, Jr.,
Chairman Committee.
Inc opinion OF Messrs. Spruance and
DUPONT, IN response to the above queries
is as follows:
Having carefully examined the sever
al questions contained in your letter 10
us, we beg leave to submit the following
reply. '"e
Flrst-The effect of the act March %.
1877, 10Th Volume Delaware Laws. is to
prohibit the borrowing of money Dy the
Board of Education for any purpose
whatever. The only debts and liabilities
which the Board may create are such
ordinary ones as may be- directly incur
red In executing heir duties, and these
are to be paid out of their appropriation
ana receipts for the current year The
power TO borrow mcney, even temporari-
ly, to pay such debts and liabilities
IS not granted. here is difftre ace
between contracting a debt in the prose-
cution OF a legitimate corporate purpose,
ana the borrowing money for that pur-
pose. The powers of a corporation can
not be exercised without directly incur
ring debts and liabilities of the character
speclfied i'll the act, but they can be eX-
ercised without borrowing money. How
ever lnconveLlent may be the result, it
appears clear to us that it was the pur-
pose OF the Legislature, as expressed in
the act, to wholly deprive the Board of
tne power to borrow money, even for
the payment of ordinary current ex-
penses.
Second. Thesu of SCI, 900 having been
duly appropriated for school purposes for
the year 1877, and this sum being within
the limits prescribed by law, and the
above mentioned act expressly requiring
that the amount of the appropriation for
school purposes made by The City Coun-
Gil in January shall be paid IN full by the
CITY Treasurer upon orders drawn by the
Board, we are of the opinion that il is the
duty of the City Council so to levy the
tax that the Board shall receive the full
amount of the appropriation of $50, 900,
clear of errors, commissions and other
expenses. No time for the payment of
this money to the Board is fixed by law,
but 1t Will be payable upon orders drawn
by the Board on the City Treasurer from
time to time, as the same may be by him
received from the collectors of taxes.
Third. The act of March 10lh, 1877,
provides that the Mayor and Council of
Wilmington shall have power and au-
thority, under an ordinance, at anytime,
to borrow sum or sums not exceeding
$500 COO, of which $50, 600 is to be appro-
priated to pay the floating and the fund
ed debt of the Board of Education. The
time and mode of borrowing this, and
the rate of interest mot exceeding six
Per cent? ar, in the discretion OF the City
Council. The question as to the igl t. of
the Board, in case the bonds should be
sold below par, is not now practical
one, as all the bonds have been, or will
be in few days, disposed of at par.
! Yours, very respectfully,
/ VICTOR DUPoNT,
w. q. SPRUANCE.
The report was accepted and ordered
to he fled