Trustees of the Goldsboro Graded School v. Broadhurst
13 S.E. 781
N.C.
1891
Check Treatment
MbekimoN, C. J.:

The single distinct question raised by the assignment of error for our decision is: “Are the Board of Commissioners of the county of Wayne charged and required by the statutes (Act 1881, ch. 189; Act 1887, ch. 382; Act 1891, ch. 206), all or any one of them, to annually levy a tax, as prescribed, upon the taxable property and polls of Goldsboro township in said county to pay the interest as the same shall come due, and to provide a sinking fund to pay the principal when the same shall mature, of the bonds in question ? ” It is insisted that this question must be decided in the negative, because a majority of the qualified voters of the township named have not voted to create the mortgage-debt of which such bonds are a part, nor have they voted in favor of the levy of such tax.

The first and second of the Statutes cited above authorize the levy of taxes on the taxable property and polls of Golds-boro township for the purpose of establishing and the annual support of graded schools in that township; but they do not, certainly they do not in terms, authorize the trustees of these schools to create a debt secured by the mortgage of the school property; nor do they in terms, or by implication, authorize the Board of Commissioners of the county to levy taxes to pay the interest or principal of any debt for any purpose. The statute of 1891 expressly authorized the trus *231 tees of the schools to issue their bonds to the amount of $15,000 and exchange them for those bonds first mentioned unpaid and outstanding, and to sell the same; and to annually apply so much of the taxes levied for the support of the schools as may be necessary to pay the interest on such bonds, and to provide a sinking fund for the payment of the principal of the debt at its maturity. It further provided, that — “ If the said board of trustees shall fail to provide for the payment of the interest or for the establishment of the sinking fund hereinbefore provided for, it shall be the duty of the Board of County Commissioners of Wayne County.to levy a tax upon the property and polls in Goldsboro township in said county, annually, for the payment of said interest and the establishment of said sinking fund,” etc. Thus, plainly, the debt last mentioned is sought to be made that of the township, and taxes are to be levied to pay it by the Board of Commissioner of the County in the way and to the extent prescribed. The obvious purpose is to have the township assume and pay the debt secured by the bonds and mortgage, if. the trustees fail to provide for its payment.

The township with corporate entity conferred upon it is, in an important sense, a municipal corporation, exercising such corporate powers and functions as may be conferred upon it by statute. The Code, § 707, ¶ 14; Brown v. Commissioners, 100 N. C., 92; Wallace v. Trustees, 84 N. C., 164. Here the clear purpose was to confer upon the township, as a corporate entity, capacity, power and authority to assume a debt of the trustees of the graded schools. Whether this is sufficiently done or not is a question we need not now decide, it is not necessary to do so, because, granting, for the present purpose, that it is, we are clearly of opinion that the tax cannot be levied as prescribed, for the conclusive reason that a majority of the qualified voters of the township have not voted in favor of assuming the debt of the trustees, nor in favor of the levy of a tax for the purpose. The Constitu *232 tion (Art. 7, § 7) expressly provides, that “ no county, city, town or other municipal corporation shall contract any debt, pledge its faith, or loan its credit, nor shall any tax be levied or collected by any officers of the same, except for the necessary expenses thereof, unless by a vote of the majority of the qualified voters therein.” No vote was taken to ascertain the will of a majority of such voters.

It cannot be said, properly, that the debt authorized by the last mentioned statute, or the other debt at first created by the trustees of the graded schools for the purchase of lands and the erection of appropriate school buildings, are debts created to pay “ necessary expenses ” of the township. Expenses incurred in establishing and supporting graded schools are not part of such “ necessary expenses,” because such schools do not pertain to or constitute part of the organization, or come within the ordinary purposes of townships any more than colleges or the like institutions, or particular enterprises or undertakings that are intended specially to promote the convenience or advantage of the people of a particular locality. Such things are exceptional in townships and not necessary for their ordinary purposes. The very purpose of the constitutional inhibition is to prevent the creation of debts for such exceptional purposes, without the sanction of a majority of the qualified voters of the township, city or town. Important as are public schools, and graded schools as well, it is not the purpose of townships as such to establish and support them. Under the Constitution, and appropriate legislation in pursuance thereof, schools are otherwise provided for. Hence, when it is deemed expedient and desirable that a graded school shall be established in a particular township, a debt for the purpose can be created only with the sanction of a majority of the qualified voters thereof. Lane v. Stanly, 65 N. C., 153.

This case is, in no sense, like that of Blanton v. Commissioners, 101 N. C., 532. There no new debt was in question, *233 or to be paid. The statute simply allowed the Board of Commissioners to issue new bonds in lieu of or to pay the old ones maturing. Here there was no old or prior debt of the township to be paid — the purpose is to pay a new debt. The judgment must be reversed, and the case disposed of according to law.

Error.