MUNICIPAL CORPORATIONS-POWER OF THE MUNICIPALITY TO EXPEND PUBLIC FUNDS FOR MUNICIPAL ADVERTISING

A statute allowed any city to set aside a certain amount annually from the general tax fund, which money might be expended under the direction and control of the city council for the purpose of aiding and encouraging the location of industry and other purposes which would increase the population, taxable property, and business prospects of the city. The Burlington City Council appropriated $2,000 to the Chamber of Commerce, a private non-profit corporation, which was organized for the purpose of advancing the commercial, civic, industrial, and monetary interests of the city. No specification was, made as to use, and the Chamber of Commerce used it for general expenses. Plaintiff demanded that the Chamber of Commerce restore the money and that the City Council bring an action to recover it. On refusal, plaintiff brought a taxpayer\u27s action1 against the Chamber of Commerce and a judgment was rendered in favor of the plaintiff. On appeal, held, affirmed. Expenditure of the funds was left to the discretion of the Chamber of Commerce rather than that of the City Council as required by law and was therefore illegal. Horner v. Chamber of Commerce of the City of Burlington, Inc., (N. C. 1952) 68 S. E. (2d) 660