The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1894-12-26
Public School Funds---An Important
Decision,

In the matter of public school funds
in the hands of school district treas
urers, April 1, 1893, at which time the
law of 1892, abolishing school districts,
went into effect, the supreme court,
through Chief Judge Ross, has promul-
gated is decision. The decision is
based upon test case in which the
town of Barre is plaintiff, and school
district No. Is in that town is defend
ant. The town sued for the recovery
of S466 81 in the district treasury April
1, 1898, and what might be realized
from 5000 uncollected taxes. OF the
cash in the treasury, S15312 accrued
from taxes assessed upon the district,
and S313.45 was received from the
town, on the division of the public
school money.
District No. 10, like many others,
con ended that the cash in the trea sury
and the uncollected taxes were the
property of the district and should be
divided among its taxpayers. In a
large number of cases, upon vote of the
districts, the funds remaining 10 the
hands of the district treasurers were
returned to the taxpayers; in other
cases the district treasurer disre-
garded the vote of the district direct
ing such disposition of the funds, and
the large majority wisely awaited the
decision of the court as to the proper
disposition of the funds in question.
The court decides that the money
which the school districts held April l,
1898, after paying all the debts, except
those incurred for school buildings, in
Guiding land for school-houses, and re-
pairs upon buildings, which the law of
1892 provided should be assumed by
town, was held by them as trustees,
and was to be devoted TO the education
of the children of the state, in accord
ance with the purpose for which the
money was originally raised by taxa
ton, or was paid over to the districts
as their share of certain funds-the in
terest on the Huntington fund, etc.
The whole fund in controversy, I'M
der various laws, was devoted to the
purpose of maintaining public schools.
1t could not lawfully be diverted from
such purpose. In April l, 1898, the
district ceased to be trustees of this
money. They only had power left to
settle their pecuniary affairs. They
were thus empowered to finish the COL
lection of taxes. Their power further to
carry on the purpose to which these
funds were devoted was taken away.
To still carry on this purpose, the town
was constituted single school district.
1t is still the policy of the state to edu-
cate all its youth. They are still the
beneficiaries of these school funds.
The districts have no right or power to
divert any part of this money from the
purpose to which the law has devoted
it. By the laws of 1892 the town is
created trustee to succeed the distr ct.
Unless controlled by act of the legisla-
ture making the change, newly
created trustee generally takes the trust
fund in the hands of its predecessor,
whose function to carry on the trust
has been taken away. The right to ex-
pend the funds on hand, and those
which may be realized from the uncol-
lected tax, has passed to the new trustee.
Hence the town is entitled to the funds
in the hands of the district treasurer,
April l, 1893, and to recover such funds
if they have been distri outed to the tax
payers. The town is also entitled to
such outstanding taxes as may be col
lected by the districts.
Such is the substance of the decision.
The districts which made such haste
two years ago to empty their treasures
into their taxpayers pockets, often in
opposition to wiser counsels, will await
with something of trepidation the sum-
mons to re-collect the treasure and pass
it over to its rightful custodian.