Thrift v. . Elizabeth City

Citations

• 30 S.E. 349
• 122 N.C. 31
• 44 L.R.A. 427
• 1898 N.C. LEXIS 185

Syllabus

<p>Municipal Corporation — Contraction of Debt — Unusual Tax Levy — Necessary Expenses — Water-Works—Invalid Contract — Constitutional Lato — Exclusive Privileges — Perpetuities.</p> <p>1. The establishment, maintenance or rental of water-works is not a necessary municipal expense within the meaning of Section 7, Article YII of the Constitution, so as to permit the levy of a tax beyond that authorized by the Charter or the incurring a debt for the purpose, without proper legislative authority and the approval of a popular vote.</p> <p>2. There is no difference between making a contract binding a municipality for a long period of years, requiring the payment of a large yearly sum, and the issuing of bonds of the municipality to run a like period.</p> <p>3. A contract or ordinance of a City attempting to grant any exclusive privilege for the construction of water-works, &c., and the exclusive use of its streets, &c., for any purpose, comes within the prohibition against monopolies and perpetuities contained in Section 31, Article I of the State Constitution, even though such grant is made as an incentive or inducement to the establishment and maintenance of works contributing to the health, comfort or convenience of the public.</p>