Swinson v. Town Of Mt. Olive

• Decision Date: 13 May 1908
• Citation: 147 N.C. 611,61 S.E. 569
• Parties: SWINSON et al. v. TOWN OF MT. OLIVE et al.
• Court: North Carolina Supreme Court

147 N.C. 611

61 S.E. 569

SWINSON et al.

v.TOWN OF MT. OLIVE et al.

Supreme Court of North Carolina.

May 13, 1908.

Municipal Corporations — Public Debt — Power to Incur Indebtedness—Submission to Popular Vote.

Const. art. 7, § 7, provides that no municipal corporation shall contract any debt, except for necessary expenses thereof, unless by majority vote of the qualified voters therein. Priv. Laws 1905, p. 576, c. 201, § 49, authorized defendant town to build a town hall and market place, and issue bonds from time to time for that purpose to a certain sum. Section 52, p. 577, provided for the payment of such bonds and interest thereon by levying a particular tax, not to be less than 5 nor more than 20 cents on $100, and not less than 15 nor more than 60 cents on each poll for each $50,000 of the bonds, the taxes to be accounted for and kept separate from other town taxes, and applied exclusively to the purpose stated, and section 28 provided that the annual tax on property enumerated shall not exceed 50 cents on the $100 valuation, and poll taxes shall not exceed $1.50. Held, that section 28, p. 571, only applied to taxes for ordinary purposes, and did not apply to indebtedness for special purposes enumerated in section 49, and there was no limitation upon town taxes for necessary purposes, except as imposed by statute, so that the Legislature could properly authorize the building of a town hall, etc.. without the vote of the people.

Appeal from Superior Court, Wayne County; W. R. Allen, Judge.

Action by Ira Swinson and others against the town of Mt. Olive and others to restrain defendant from issuing certain bonds. From a judgment denying injunction, complainants appeal. Affirmed.

J. D. Langston, for appellants.

H. B. Parker, Jr., for appellees.

CLARK, C. J. This is an action to restrain the defendant, the town of Mt. Olive, from issuing $6,000 "to build and own a town hall and market house" without a vote of the people. The General Assembly by section 49, c. 201, p. 576, Priv. Laws 1905, especially empowers the defendant to issue bonds for that purpose. The General Assembly can authorize a municipal corporation to create a debt without a vote of the people for necessary purposes. Const, art. 7, § 7; Fawcett v. Mt. Airy, 134 N. C. 125, 45 S. E. 1029, 63 L R. A. 870, 101 Am. St. Rep. 825; Wilson v. Charlotte, 74 N. C. 748. A market house was held to be a necessary expense for a town. Smith v. Newbern, 70 N. C. 14, 16 Am. Rep. 766; Wade v. Newbern, 77 N. C....