Webb v. Port Commission of Morehead City

205 N.C. 663
CourtSupreme Court of North Carolina
DecidedJanuary 10, 1934
StatusPublished
Cited by7 cases

This text of 205 N.C. 663 (Webb v. Port Commission of Morehead City) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Webb v. Port Commission of Morehead City, 205 N.C. 663 (N.C. 1934).

Opinions

OoNNon, J.

It is contended on behalf of the plaintiffs, on their appeal to this Court, that chapter 75, Private Laws of North Carolina, Session 1933, is unconstitutional and void, because by its enactment the General Assembly has undertaken to create a corporation by a special act in violation of the prohibition of section 1 of Article VIII of the Constitution of North Carolina. If this contention is sustained, the judgment of the Superior Court is erroneous in all respects, and must be reversed. If, however, the act is constitutional and valid, the Port Commission of Morehead City is a corporation duly created and organized under the laws of this State, with such powers as are conferred upon said corporation by the General Assembly in the exercise of its valid legislative power. In that case, the validity of these powers as set out in the act, is presented by the plaintiffs’ exception to the judgment, and must be determined by this Court in disposing of this appeal. If some of these powers are valid, and others invalid, because of constitutional prohibi[672]*672tions, tbe judgment must be modified and affirmed. If all tbe essential powers conferred by tbe act on tbe Port Commission of Morebead City, as a corporation, are valid, tbe judgment must be affirmed. Tbus tbe primary question involved in tbis appeal is wbetber tbe act of tbe General Assembly creating tbe corporation is unconstitutional and void, as contended on behalf of tbe plaintiffs.

Section 1 of Article VIII of the Constitution of North Carolina, is as follows:

“Section 1. Corporations under General Laws. No corporation shall be created, nor shall its charter be extended, altered, or amended by special act, except corporations for charitable, educational, penal or reformatory purposes that are to be and remain under tbe patronage and control of the State; but the General Assembly shall provide by general laws for the chartering and organization of all corporations and for amending, extending and forfeiture of all charters, except those above permitted by special act. All such general laws and special acts may be altered from time to time or repealed; and tbe General Assembly may at any time by special act repeal tbe charter of any corporation.”

Whether or not chapter 75, Private Laws of North Carolina, Session 1933, is a special act within tbe meaning of section 1 of Article VIII of the Constitution, is to be determined not by its form or by its publication as a private act, but by its purpose as disclosed by its language, and by what in the ordinary course of things must necessarily be its ojieration and effect. R. R. v. Cherokee County, 177 N. C., 86, 97 S. E., 758; Hancock v. R. R., 124 N. C., 222, 32 S. E., 679. Whether a statute is public or private, general or special, within tbe meaning of a constitutional provision affecting its validity for that reason, depends upon its purpose as shown by its contents, and not upon tbe judgment of a public official, who has directed its publication in the performance of an administrative duty imposed upon him by statute. C. S., 7659.

And so, whether or not the corporation created by chapter 75, Private Laws of North Carolina, Session 1933, and known as the Port Commission of Morebead City, is such a corporation as tbe General Assembly is prohibited from creating by section 1 of Article VIII of tbe Constitution, is to be determined by tbe purposes for which said corporation was created, and the powers which are conferred upon said corporation by the act, and not by a strict and literal construction of tbe word as used in said section. It has been uniformly held by this Court since section 1 of Article VIII was ratified as an amendment to tbe Constitution, that tbe prohibition contained in the section refers to private or business corporations, and not to public or gwosi-public corporations created by tbe General Assembly, as governmental agencies with power to perform governmental functions. Holmes v. Fayetteville, [673]*673197 N. C., 740, 150 S. E., 624. In that case it is said: “It has been lield that this section applies only to private or business corporations and not to those of a public or giwi-public nature, such as cities, towns, and counties. Kornegay v. Goldsboro, 180 N. C., 441, 105 S. E., 187. A municipality furnishing water or light renders service for a public purpose, and the fact that the water or service is furnished for individual consumption or the use of the inhabitants does not detract from the public service. Private purposes may be served incidentally, but this does not destroy the public character of the corporation or municipality. 3 Dillon (5 ed.), see. 1300.” The suggestion to this effect was first made in Board of Education v. Comrs., 174 N. C., 47, 93 S. E., 383, and was subsequently approved in Mills v. Comrs., 175 N. C., 215, 93 S. E., 481. It may be that in neither of these cases was the question directly presented. The question was, however, directly presented and decided by this Court in Kornegay v. Goldsboro, 180 N. C., 441, 105 S. E., 187, and in Dickson v. Brewer, 180 N. C., 403, 104 S. E., 887. In Kornegay v. Goldsboro, supra, it was held that section 1 of Article YIII of the Constitution must be construed in connection with sections 2 and 3 of said article. Applying this principle, it was held that the word “corporation,” used in section 1 of Article YIII, must be construed as meanin'g^a corporation created for private or business purposes.

An examination of all the provisions of chapter 75, Private Laws of North Carolina, Session 1933, discloses that the corporation created by said act, to be known as the Port Commission of Morehead City, is not a private or business corporation, but is a public corporation, created by the General Assembly as an agency of the State to perform a well recognized governmental function, to wit: to provide facilities for the transportation of goods, wares and merchandise both into and out of the State by means of carriers over land and water. These facilities will not be constructed, maintained or operated, under the terms of the act, for private gain, but solely in the public interest. Eevenues derived from the operation of the facilities will be devoted exclusively to the payment of the expense of their operation and maintenance, and of the interest on the bonds, and of the bonds, at their maturity, which the corporation is authorized to issue to procure funds to defray the expense of constructing, maintaining and operating the said facilities. For these reasons, the statute is not a special act within the meaning of section 1 of Article YIII of the Constitution of this State, nor is the Port Commission of Morehead City such a corporation as the General Assembly of this State is prohibited from creating by said section.

The contention that chapter 75, Private Laws of North Carolina, Session 1933, is unconstitutional and void, because its enactment was [674]*674in violation of section 1 of Article VIII of tbe Constitution of North Carolina, is not sustained. There was no error in the judgment of the Superior Court that said act is constitutional and valid. Its enactment was not in violation of any prohibition of the Constitution of this State.

The Port Commission of Morehead City is a corporation duly created by the General Assembly of this State, in the valid exercise of its legislative power.

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Bluebook (online)
205 N.C. 663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/webb-v-port-commission-of-morehead-city-nc-1934.