Elizabeth City v. Banks

150 N.C. 407
Supreme Court of North Carolina·Decided April 7, 1909·Published·Cited by 18 cases

Opinion

Connor, J.,

after stating the facts: The question which lies at the threshold of this case is whether, in the absence of any legislative authority, express or implied, the plaintiff, through its governing body, had any power to grant to the defendant Banks the franchise to use its streets in the manner set forth in the ordinance. It is conceded that, prior to the enactment of section 2916, subsection 6, of the Revisal, which became effective 1 August, 1905, no such power was conferred upon municipal corporations by the general statutes prescribing the powers of cities and towns. By that statute they are authorized “to grant, upon reasonable terms, franchises to public utilities.” Looking, therefore, to the charter of the plaintiff (Private Laws 1905, ch. 15), we find no express power conferred upon the board of aldermen to grant franchises in or over the streets of the city. Section 19 confers the power to make such ordinances as they may deem necessary for the government of the city, not inconsistent with the laws of" the land, and by all needful ordinances to secure order, health, quiet and safety within the city limits [411]*411and for one mile beyond. Sucb special powers as are conferred are confined to passing ordinances relating to markets, fires, observance of tbe Sabbath., nuisances, powder, speed of riding and driving vehicles, keeping the sidewalks clear of obstructions, etc., regulating building material, regulating charges for hacks and omnibuses, and appointing inspectors of fish and meats. Provision is made for electing a street commissioner, with power to keep in repair the streets, bridges, etc. The board of aldermen are given power to lay out and open streets, to extend or discontinue them, and to condemn land for these purposes. We' find no grant of power to make provision for furnishing lights, power or fuel, or for establishing plants for that purpose. No question is presented upon this record in regard to the power, by implication, for providing for lighting the streets. This would doubtless be found, by necessary implication, in the power to regulate the streets, provide for the safety of the people, etc. This, under the more recent decisions of this Court, would be not only an implied power, but a duty, the discharge of which would involve a necessary expense. Faucett v. Mt. Airy, 134 N. C., 125; Davis v. Fremont, 135 N. C., 538, and other eases reversing Thrift v. Elizabeth City, 122 N. C., 31. It will be'noted that the contract made with defendant Banks makes no other provision for furnishing light for the streets than a permission to make a contract with the city for that purpose. He is under no obligation to do so. This question is therefore, eliminated from the discussion. The purpose of granting the franchise is to permit defendant Banks to supply light, fuel and power to the citizens of the town. He does not come under any obligation to furnish all of the citizens. It is true that maximum rates are prescribed, and the city reserves the power to buy the plant after ten years, at a price to be fixed by arbitration. "Whether the plant to be established by the defendant Banks is a public utility may be open to controversy, but our decision does not rest upon that question, and it is not necessary to discuss it. We assume, for. the purpose of the decision, that it is a public utility. It is an elementary principle of law that a municipal as well as any other corporation can exercise only such powers as are expressly granted or neces[412]*412sarily and fairly implied in or incident to tbe exercise of powers which, are granted. Any fair, reasonable doubt concerning the existence of the power is resolved against the corporation. 1 Dillon Mum. Oorp. (4th Ed.), 89. Mr. Justice Bynum, in Smith v. New Bern, 70 N. C., 14, states the doctrine approved by Judge Dillon and uniformly followed by this Court — in fact, so far as our examination goes, of all American courts. He says: “All corporations derive their powers from legislative' grants, and can do no act for which authority is not expressly given or may not be reasonably inferred. But if we say that they can do nothing for which a warrant could not be found in the language of their charter, we deny them in many cases the power of self-preservation, as well as many of the means necessary to effect the essential object of their creation; hence they may exercise all the powers within the fair intent and purpose of their creation which are reasonably necessary to give effect to powers expressly granted.” Reese Ultra Vires, sec. 170; Railroad v. Railroad, 114 N. C., 725. Applying this general principle to the case at bar, what power has- a municipality, through its governing board, to use or permit the use of its streets for other than the purpose of a highway? It does not appear, nor do we deem it at all material to inquire, whether the city owns the fee in the soil over which the streets are laid out, or only an easement. Whatever difference of opinion exists in respect to the rights of abutting owners in regard to the use of the streets for other than the purposes of highways does not affect the merits of this case. In either event the law is well settled that the title either of the fee in the soil or an easement is vested in the municipality, in trust for the use of the people as and for' a public highway, and that it cannot, without legislative authority, divert them from this use. How far the power of the legislature to permit other burdens to be imposed upon them may be exercised without providing for 'compensation to the municipality is not involved in this discussion, and we only refer to it to exclude any suggestion that in defining the power of the Legislature to impose burdens upon the streets of a municipal corporation we are referring to that question. We held, in Brown v. Electric Co., 138 N.. C., 533, and Staton v. Railroad, [413]*413147 N. C., 428, that' tbe Legislature could not do so without providing for compensation to tbe abutting owner. -That tbe Legislature bas very extensive powers over tbe public streets as a part of tbe public highways of tbe State is well settled, and that such power as tbe municipal authorities have are derived from legislative grant is equally well settled. Judge Dillon says: “Public streets, squares and commons, unless there be some special restriction when tbe same are dedicated or acquired, are for tbe public use, and tbe use is none tbe less for tbe public at large, as distinguished from tbe municipality, because they are situated within tbe limits of tbe latter, and because tbe Legislature may have given tbe supervision, control arid regulation of them to tbe local authorities. Tbe Legislature of tbe State represents tbe public at large, .and bas, in tbe absence of special constitutional restraint, and subject to tbe property rights and easements of tbe abutting owners, full and paramount authority, over all public ways and public places.” 2 Mun. Oorp. (4th Ed.), 656. That tbe commissioners of a town cannot without legislative authority sell a street or park bas been uniformly held by this. Court. Moose v. Carson, 104 N. C., 431; White v. Railroad,, 113 N. C., 610; Southport v. Stanly, 125 N. C., 465; Turner v. Commissioners, 127 N. C., 153. In White v. Railroad, supra, Shepherd, C. J., discusses tbe question in tbe light of tbe authorities. Tbe opinion is amply sustained, both by reason and authority. When we look beyond our own jurisdiction for cases “in point,” we find that tbe principle bas been applied to attempted grants of franchises to put gas pipes in the streets. In Gaslight Co. v. Gas Co.,

Free access — add to your briefcase to read the full text and ask questions with AI

Elizabeth City v. Banks, 150 N.C. 407 (N.C. 1909).

150 N.C. 407 (Elizabeth City v. Banks) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Baltimore Steam Co. v. Baltimore Gas & Electric Co.
716 A.2d 1042 (Court of Special Appeals of Maryland, 1998)
Town of Emerald Isle Ex Rel. Smith v. State
360 S.E.2d 756 (Supreme Court of North Carolina, 1987)
Stillings v. City of Winston-Salem
319 S.E.2d 233 (Supreme Court of North Carolina, 1984)
Porsh Builders, Inc. v. City of Winston-Salem
276 S.E.2d 443 (Supreme Court of North Carolina, 1981)
Shaw v. City of Asheville
152 S.E.2d 139 (Supreme Court of North Carolina, 1967)
Thompson v. SEABOARD AIR LINE RAILROAD COMPANY
104 S.E.2d 181 (Supreme Court of North Carolina, 1958)
McLean v. Keith
72 S.E.2d 44 (Supreme Court of North Carolina, 1952)
City of Griffin v. First Federal Savings & Loan Ass'n
55 S.E.2d 771 (Court of Appeals of Georgia, 1949)
Swinson v. Cutter Realty Co.
156 S.E. 545 (Supreme Court of North Carolina, 1931)
Hill v. Elizabeth City
291 F. 194 (E.D. North Carolina, 1923)
Allen v. Town of Reidsville
101 S.E. 267 (Supreme Court of North Carolina, 1919)
Water Co. v. . Trustees
65 S.E. 927 (Supreme Court of North Carolina, 1909)
Henderson Water Co. v. Trustees of Henderson Graded Schools
151 N.C. 171 (Supreme Court of North Carolina, 1909)
R. R. v. . R. R.
19 S.E. 697 (Supreme Court of North Carolina, 1894)
White v. . R. R.
18 S.E. 330 (Supreme Court of North Carolina, 1893)