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The Transportation Advisory Commission grew out of recommendations made by two successive governors and the State Ship and Water Transportation Commission (SWTC). The SWTC was established by the General Assembly of 1923 by request of Governor Cameron Morrison. Like many of his predecessors and contemporaries, Morrison believed that the state could not compete favorably with neighboring states because it lacked railroads linked to strong water transportation routes and ports. Often cited as a case in point, freight rates set by the Interstate Commerce Commission (ICC) penalized North Carolina while favoring Virginia, which had a competitive system of water and rail transportation. The primary purpose of the SWTC was to investigate ways to strengthen the state's commerce and to eliminate discrimination against the state in the form of disadvantageous freight rates. The main functions of the commission involved studying the following: the possibility of operating ship lines and other means of water transportation on the state's navigable rivers, sounds, and ocean waters; and the cost of operating suitable vessels and establishing docks, wharves, and terminals. The SWTC concluded that it was feasible for the state to support a water transportation system and, to this end, made the following recommendations: that the legislature establish a Port Commission, finance it through state-issued bonds, and vest it with full authority to purchase or lease ships and construct port terminals. The SWTC further recommended that the Port Commission establish a transportation advisory body which would work with the Corporation Commission for the purpose of gaining greater competitive advantage for the state in the areas of rates, transportation regulations, and trade channels. In 1924 the General Assembly formally established the Port Commission and vested it with the powers and duties recommended by the SWTC. This enabling act, however, was made contingent upon majority voter approval in the November general election. Known as the Port and Water-Carried Commerce Development Bill, this measure was narrowly defeated and the Port Commission became defunct. As Morrison's successor in 1925, Governor Angus W. McLean continued to urge development of the state's water transportation system. The new governor requested the legislature to create the transportation advisory body which was previously recommended by the SWTC and part of the Port Commission's program. In March of 1925 the General Assembly established the Transportation Advisory Commission (TAC) for the dual purpose of determining the existence of alleged rate discrimination against shippers and receivers of freight within the state and deciding if, and by what means, the state should cooperate with the federal government in development of water transportation routes to and from North Carolina ports. The TAC consisted of twelve gubernatorial appointees who represented business interests from every section of the state. They served for unspecified terms. The chairman and vice chairman were also designated by the governor, while the secretary, clerical assistants, and expert and general counsel were elected by the commission. The primary duties of the TAC were to make a complete survey of the structure of freight rates to, from, and within the state; and to make periodic reports to the governor of its findings and recommendations for alleviating freight discrimination and aiding in the development of water transportation. The commission was expected to propose the following: appropriate cooperative efforts between the state and federal government; cases to be brought before bodies such as the ICC, the Shipping Board, or the courts; and legislative measures to be enacted by the General Assembly. The commission was empowered to adopt rules for its administration and proceedings; to take testimonies and hold meetings both in and outside the state; and to require production of books and documents by the same process used in superior court. In addition to its other duties, the TAC worked in an advisory capacity to the Corporation Commission. The latter commission was required by law to implement all recommendations of TAC which were approved by the governor. The Corporation Commission was created by the legislature in 1899 and superseded the former Railroad Commission, which dated from 1891. At the time of the TAC's establishment, the Corporation Commission functioned in a quasi-legislative and judicial capacity and made decisions with respect to the following types of companies under its supervision: common carriers, including railroad, steamboat, and canal companies; telegraph and telephone companies; water and gas companies; hydro-electric power companies; public and private banks, loan and trust institutions; and all other companies exercising the right of eminent domain. In January of 1927, the United States Congress approved the construction of a section of the Intracoastal Waterway from Beaufort Inlet in Carteret County, almost to the mouth of the Cape Fear River in New Hanover County, and granted the federal goverment right of way to all property involved. Governor McLean regarded this act as crucial in the state's efforts to expand its waterborne commerce. During the following month, the General Assembly authorized the secretary of state to issue a deed to the federal government for right of way once the desired property had been acquired. Under this act, the TAC was empowered to act on behalf of the state to secure titles needed to complete property transfers. The commission was further granted powers of condemnation when no agreeable price could be reached between the parties involved. Under the River and Harbor Act of 1931, Congress approved construction of an additional southern portion of the Intracoastal Waterway from the Cape Fear River, at Southport, to and beyond the boundary between North and South Carolina. In response to this act, the General Assembly authorized virtually the same procedure of granting title to the federal government that was used in 1927. The 1931 act, however, specified that the federal government be authorized to condemn all property needed and that the TAC be responsible for paying all expenses of the condemnation proceedings out of funds appropriated for such purposes. In 1933 the Corporation Commission was superseded by the Office of Utilities Commissioner, effective 1 January 1934. Although the first commissioner was appointed by the governor, his successors were elected every four years by popular vote. The General Assembly of 1937 abolished the TAC and transferred its full powers and duties to the utilities commissioner. That office was authorized to bring to conclusion all pending proceedings and cases of the former commission. By legislative act in 1941, the Office of Utilities Commissioner was replaced by the North Carolina Utilities Commission. REFERENCES: P.L., 1891, c. 320. P.L., 1899, c. 164. P.L., 1923, c. 94. P.L., 1924, c. 33. P.L., 1925, c. 266. P.L., 1927, c. 44. P.L., 1931, c. 2. P.L., 1933, c. 134. P.L., 1937, c. 434. P.L., 1941, c. 97. Corbitt, David L., ed. PUBLIC PAPERS AND LETTERS OF CAMERON MORRISON, GOVERNOR OF NORTH CAROLINA, 1921-1925. Raleigh: State Printers, 1927. Pp. xliii-xliv, 65-66, 261-266, 269-270, 272-274. ---. PUBLIC PAPERS AND LETTERS OF ANGUS WILTON MCLEAN, GOVERNOR OF NORTH CAROLINA, 1925-1929. Raleigh: Council of State, 1931. Pp. 26-29, 71-72, 725. Ship and Water Transportation Commission. REPORT OF THE STATE SHIP AND WATER TRANSPORTATION COMMISSION, MAY 23, 1924. Raleigh, 1924. Pp. 9-22, 31-34. ---. BRIEF ON BEHALF OF A STATE OWNED AND OPERATED PORT TERMINAL AT THE MOUTH OF THE CAPE FEAR RIVER, OR SOUTHPORT, BEFORE THE STATE SHIP AND WATER TRANSPORTATION COMMISSION OF NORTH CAROLINA. Raleigh, 1923. State Auditor. PLAN OF REORGANIZATION OF STATE DEPARTMENTS, BOARDS AND COMMISSIONS, 1923. Raleigh, 1923. Pp. 90-91. See also State Ports Authority Record Group, MARS #106 and Utilities Commission Record Group, MARS #6. |
