Tonkins v. City of Greensboro Brief for Appellants
Public Court Documents
January 1, 1959

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Brief Collection, LDF Court Filings. Tonkins v. City of Greensboro Brief for Appellants, 1959. 03297153-c69a-ee11-be37-00224827e97b. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/9767bcc1-0fe9-4117-beb7-71610da0794f/tonkins-v-city-of-greensboro-brief-for-appellants. Accessed May 14, 2025.
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In th e S t a t e s (£nwt n f A p p r a l s F oe the F ourth Circuit No. 8025 Deloris T onkins, et al., Plaintiffs-Appellants, City of Greensboro, et al., and The Greensboro P ool Corporation, et al., Defendants-Appellees. BRIEF FOR APPELLANTS J. K enneth Lee Major S. H igh 427 Bembow Road Greensboro, North Carolina C. 0. P earson 203% East Chapel Hill Street Durham, North Carolina Constance Baker Motley T hurgood Marshall 10 Columbus Circle New York 19, N. Y. Attorneys for Appellants I N D E X PAGE Statement of the Case ............................... ........................ 1 Question Presented .............. 4 Statement of the F a cts ................... ................................... . 5 Argument .............................................. 18 Greensboro City Charter, §100 ....... 29 Table oe Cases Aaron v. Cooper, 261 F. 2d 97 (8th Cir. 1958) ........... 27 Aaron v. McKinley, 173 F. Supp. 944 (E. D. Ark. 1959) 28 Baskin v. Brown, 174 F. 2d 391 (4th Cir. 1959) ........... 26 Cooper v. Aaron, 358 U. S. 1, 19 ............... ................... 27 Guinn v. United States, 238 U. S. 347 ........................... 26 James v. Almond, 170 F. Supp. 331 (E. D. Va. 1959) 28 James v. Duckworth, 170 F. Supp. 342 (E. D. Ya. 1959), aff’d 267 F. 2d 224 (4th Cir. 1.959), cert, den. October 12, 1959, 28 L. W. 3110 ........................... 28 Lane v. Wilson, 307 U. S. 268 ....................................... 26 Lawrence v. Hancock (S. D. W. Va. 1948), 76 F. Supp. 1004 .................................................................................... 24 Nixon v. Condon, 286 U. S. 7 3 ....... .................................... 26 Nixon v. Herndon, 273 U. S. 536 ................................... 26 Bice v. Elmore, 165 F. 2d 387 (4th Cir. 1947) ........... 26 11 PAGE Selmell v. Davis, 336 U. S. 933, affirming 81 F. Supp. 872 (S. D. Ala. 1949) ..... ......................... .................... 26 Simkins v. City of Greensboro, 149 F. Snpp. 562 (M. D. N. C. 1957), aff’d 246 F. 2d 425 (4th Cir. 1957) ....6,18, 25 Smith v. Allwright, 321 U. S. 649 ................................... 26 Terry v. Adams, 345 TJ. S. 461 ...................................... 26 Other A uthorities Private Laws North Carolina, Extra Session, 1924, eh. 9; Private Laws North Carolina, 1927, ch. 230 .... 29 I n th e United States (Emcrt of F ob the F ourth Circuit No. 8025 Deloris T onkins, et al., Plaintiffs-Appellants, City of Greensboro, et al., and T he Greensboro P ool Corporation, et al., Defendants-Appellees. BRIEF FOR APPELLANTS Statement of the Case Invoking the jurisdiction of the court below pursuant to the provisions of Title 28, United States Code, §1343(3), appellants, who are all adult Negro residents of the City of Greensboro, North Carolina, brought this action against their city to secure their right, protected by the Constitu tion and laws of the United States, to use the city’s Lindley Park Swimming Pool upon the same terms and conditions applicable to white residents. The original complaint, filed on the 31st day of March 1958, followed the City Council’s rejection of a petition signed by 26 Negro residents requesting use of the pool and the Council’s resolve to dispose of the pool because of its belief that “ joint use of the swimming pools owned by the city at any time in the foreseeable future would 2 inevitably and gravely disrupt the existing harmonious relations between the races.” The relief sought was an injunction enjoining the city from refusing to permit appellants, and members of their class, to use the pool, solely because of their race and color, and enjoining the city from selling the pool for the sole purpose of defeating the constitutional rights of Negro citizens. With the filing of their original complaint, appellants moved for a pre liminary injunction enjoining the proposed sale of the pool at public auction on April 1, 1958. Thereafter, on April 8, 1958, when the motion for pre liminary injunction came on for hearing, appellants filed an amended complaint. At this time the April 1 auction sale had taken place, but the bid had not been approved by the City Council, the Council having reserved to itself the right to accept or reject any bids. On April 8, the city also moved to dismiss the original complaint for failure to state a claim upon which relief could be granted. Both motions were heard on April 8, and by agreement the motion to dismiss the original complaint was considered as a motion to dismiss the complaint as amended. On April 8, 1958, following hearing on these motions, the City Council rejected the bid which had been made at the April 1st auction. As a result, by stipulation, the court below postponed immediate ruling on the motions and gave the parties additional time to file briefs. Thereafter, on May 23, 1958, the court below rendered its opinion which is reported at 162 F. Supp. 549 and ap pears in the appendix to this brief pages lla-28a. In its opinion the court ruled that appellants were not entitled to injunction enjoining sale of the pool because the city clearly had the power to sell, the purpose for doing so not being material to the exercise of this power, and because 3 there is no duty on the city to maintain a swimming pool. The court, however, deferred entry of a decree dismissing the suit for a period of thirty days after the second sale of the pool had been confirmed by the city for the purpose of allowing appellants to show “ that the sale was not bona fide in the sense that there was collusion between the de fendants and the successful bidder regarding* the future use of the pool.” On June 3, 1958, the city, by its manager, sold the pool at public auction to appellee Greensboro Pool Corporation, organized as a business corporation under the laws of North Carolina on March 4, 1958 for the sole purpose of purchasing the Lindley Park Swimming Pool and continu ing its operation as a pool open to the white public of Greensboro only. Two days later, June 5, 1958, the sale to said corporation was approved by the City Council. Thereafter, by order of the court below, appellants filed a supplemental complaint in this cause on September 5, 1958 alleging, in substance, that there was collusion be tween the officers of appellee city and the officers of appel lee Greensboro Pool Corporation with respect to the sale and future use of the pool and seeking an injunction en joining the Greensboro Pool Corporation and its officers as well as the city from continue to exclude Negroes from Lindley Park Swimming Pool. The Greensboro Pool Cor poration and its three officers were made parties-defendant by the supplemental complaint. All defendants filed an swers to the supplemental complaint denying the essential allegations therein. This cause came on for hearing on the issues as thus joined on the 26th day of February 1959. At that time, a number of stipulations were entered into between the par ties; depositions and other documents were received in evidence; and oral testimony was presented. 4 On August 13, 1959 the court below rendered another opinion in this case holding that appellants had failed to prove that the sale was not bona fide or that the City of Greensboro had any agreement of any kind with the Greens boro Pool Corporation relating to the future use or opera tion of the pool. This opinion is reported at 175 F. Supp. 476 and appears in the appendix to this brief pages 3a-10a. On the 11th day of September 1959, the court below entered an order in conformity with said opinion dismissing the complaint, as amended and supplemented, denying all relief prayed for by appellants and dismissing the action finally as to all appellees (Appendix p. la ). On the 12th day of October 1959, appellants filed their notice of appeal to this court from the entry of said order. Question Presented The question presented by this appeal is : 1. Whether, under all the facts of this case, appellants, and members of their class, may continue to be excluded from the Lindley Park Swimming Pool solely because of their race and color. Some of the facts set forth below do not appear in the opinions of the court below. Therefore, appellants have printed in an appendix hereto those portions of the deposi tions and other testimony of the officers of the appellee Greensboro Pool Corporation and those portions of the depositions of certain city officials which establish these omitted, uncontradicted facts which appellants deem rele vant to a determination of the question presented on this appeal. Appropriate page references to the appendix have been inserted. Some of the omitted facts were also established by exhibits received in evidence by the court 5 below and, therefore, appropriate references to these ex hibits, sent up to this court as a part of the record on appeal, have also been inserted in the statement of the facts. Statement of the Facts Just prior to the institution of this action, the City of Greensboro owned and operated two swimming pools — one known as the Nocho Park Swimming Pool and the other known as the Lindley Park Swimming Pool, herein after referred to as Nocho Pool and Lindley Pool. Sometime during the year 1937, the city constructed the Nocho Pool. The cost of construction is not available. This pool was operated by the city for the exclusive use of its Negro residents from 1937 to November 18, 1957 when the City Council voted to offer this pool for sale along with the Lindley Pool. Although this fact does not appear in the record, it appears that the Nocho Pool was part of a federal Works Progress Administration (W PA) project. For a period of three years prior to the institution of this suit, the city expended $12,635.70 on the operation of Nocho Pool and received in revenue there from $5,254.90. The Lindley Pool was constructed by the city during the winter of 1954 to 1955 and was open to the public in May 1955. The cost of constructing and equipping this pool was $214,958.31, exclusive of the value of the land. Statutory authority for the construction of this pool as a function of city government stems from the provisions of §160-156 General Statutes North Carolina. For the three year period prior to tiling suit, the city expended $33,412.56 in the operation of the Lindley Pool and re ceived $48,220.04 in revenue. Lindley Pool was limited 6 to use by the white residents in conformity with the racial segregation policy which obtained in other municipally owned recreational facilities. See, e.g., Simkins v. City of Greensboro, 149 F. Supp. 562 (M. D. N. C. 1957), aff’d 246 F. 2d 425 (4th Cir. 1957). Since Lindley Pool was constructed by and was under the supervision of the city’s Parks and Recreation Com mission, a group of Negro citizens appeared before this Commission soon after its first season on December 14, 1955 and requested that the Negro citizens of the com munity be allowed to use the pool also. Whereupon, the Commission voted to continue the use of the pool for white citizens exclusively (Plaintiffs’ Exhibit 17). Following this court’s decision of June 28, 1957 in the Simkins case, supra, upholding the right of the Negro residents of Greensboro to use Gillespie Park Golf Course, a municipally owned recreational facility leased to a pri vate club, upon the same terms and conditions applicable to white residents, the Mayor brought to the attention of the City Council the petition signed by 26 Negro resi dents requesting that Lindley Pool be open to Negroes. At this meeting, which took place on July 15, 1957, the Council resolved to continue the policy of operating Lind ley Pool for the exclusive use of the white race only for the remainder of the 1957 season, on the ground that “ joint use of the pool at this time might disrupt rela tions between the races which have been harmonious until now.” The Council’s resolution also provided that before the 1958 season the Council would give earnest considera tion to the problem raised in the petition. Thereafter, on September 16, 1957, Dr. R. M. Taliaferro (president of the subsequently formed appellee corpora tion) was appointed to the Parks and Recreation Com mission by the City Council. 7 On October 7, 1957 when the swimming pool season had ended, the City Council adopted a resolution which pro vided, in part, as follows: “ . . . it now appears that the joint use of the swim ming pools owned by the city at any time in the fore seeable future would inevitably and gravely disrupt the existing harmonious relations between the races, and the present investments in such facilities might more beneficially be liquidated and reinvested in a type of recreational facility offering service and en joyment to a greater portion of the population of the City than that now benefiting from the operation of the swimming pools; “ Now, therefore, be it resolved by the City Council of the City of Greensboro: “ That a public hearing be held on October 21, 1957, at 4:00 P.M., in the Council Chamber, City Hall, for the purposes of obtaining the views of the residents of the City of Greensboro as t o : “ 1. Their concurrence in the discontinuance of the operation of swimming pools as a function of the City Government and their disposal as property of the city. “ 2. The type of recreational facility or activity most widely desired, if any, in substitution thereof.” On October 10, 1957, following the adoption of this resolution, the Parks and Recreation Commission, to which Dr. Taliaferro had just been appointed, held a meeting. The Commission took note of the fact that the City Coun cil had passed a resolution regarding the operation of municipal swimming pools. This resolution was discussed by the Parks and Recreation Commission. Dr. Taliaferro 8 was present and participated in this discussion. After this discussion, the Commission’s December 1955 resolu tion affirming segregated operation of swimming pools was reaffirmed (Plaintiffs’ Exh. 18). In accordance with the City Council’s resolution of Octo ber 7, 1957, a public meeting was held on October 21, 1957. At this meeting several citizens voiced their opinions re garding the proposal of the Council to discontinue opera tion of the pools in view of the petition received from the 26 Negro citizens. Dr. Taliaferro spoke at this meeting. He presented himself as president of the Greensboro Swimming Association (a voluntary private association not a party to this action). Dr. Taliaferro stated that the Association was of the opinion that the pools could not be operated by the city on an integrated basis and, therefore, the pool should be sold or given as a “ gift” to some other private group to operate on a segregated basis (Appendix p. 63a). Other members of the Association also spoke at this hearing and likewise made it clear to the Council that the Association approved of the Council’s position (see Minutes of 10/21/57).1 Appellee Weaver, who is the secretary-treasurer of appellee Greensboro Pool Corporation, was also present at this meeting, was then a member of the Greensboro Swimming Association, and is now its president (Appendix p. 94a). No vote was taken by the City Council at this meeting regarding dis position of the pools, although a majority of the speakers favored such disposition. The Council merely listened to the views expressed at this meeting. After this meeting, Dr. Taliaferro met Mr. Elbert Lewis, a member of the City Council who was present 1 Minutes of the City Council, filed from time to time by the attorney for the city in the court below, which relate to the sale of the swimming pools have been sent up to this court as a part of the record on appeal. 9 at the October 21, 1957 meeting and heard Dr. Taliaferro speak. Dr. Taliaferro and Mr. Lewis both admit that they talked about Dr. Taliaferro’s plans to form a group to purchase the Lindley Pool and that Dr. Taliaferro specifically advised Mr. Lewis of his desire to keep the pool open and operating as a white public pool (Appendix pp. 42a-43a, 132a-135a). At the time that the Lindley Pool was constructed, Mr. Lewis was chairman of the Parks and Recreation Commission (Appendix p. 125a). On November 18, 1957, the City Council adopted a resolution providing for the sale of both pools. This resolution expressly referred to the October 21 meeting and stated, in part, that “ . . . the City Council has ear nestly considered the views expressed at that hearing . . . ” After sale of the pools was announced, Dr. Taliaferro led the drive in the community to form a group to take over the operation of the Lindley Pool (Plaintiffs’ Exhibit 21). The Greensboro Swimming Association, of which ap pellee Weaver was then president and Dr. Taliaferro a member of its executive committee (Appendix pp. 54a, 96a), distributed a leaflet in the community containing a blank form to be filled out by persons interested in form ing a group for the express purpose of purchasing Lindley Pool and operating it as the city had operated it (Plain tiffs’ Exh. 19). The forms which 'were filled out and re turned to the Association wmre subsequently turned over by it to appellee Greensboro Pool Corporation which was subsequently incorporated by Dr. Taliaferro and appellees Weaver and Coble (Appendix p. 180a). On January 22, 1958, the City Council adopted another resolution setting the date of the sale of both pools for the 18th day of March 1958. On March 4, 1958 appellee Greensboro Pool Corporation was chartered as a business corporation with $100,000 10 authorized capital stock (Appendix p. 31a). In this con nection it is significant that Mr. Lewis, when pressed for an opinion as to what he thought the city should get for Lindley Pool, responded that he thought the City should get $100,000 from the sale of the pool (Appendix p. 129a). Dr. Taliaferro and appellees Weaver and Coble are the only officers of the corporation. Dr. Taliaferro is the president, Weaver is the secretary-treasurer and Coble is the vice-president. These officers also constitute the board of directors. And these three officers own the only voting stock (Appendix pp. 31a, 52a). The corporation has had only one meeting since its incorporation (Appendix p. 175a). This meeting took place on March 4, 1958, the day on which the corporation was chartered (Plaintiffs’ Exh. 5). At this meeting the officers were elected. Dr. Taliaferro was authorized at this meeting to bid $85,000.00 for the pur chase of Lindley Pool, although the corporation at the time had no money (Appendix pp. 34a-35a, Plaintiffs’ Exh. 7). The corporation has not met since the March 4, 1958 organization meeting and, admittedly, all of the business of the corporation since that date has been carried on by Dr. Taliaferro (Appendix pp. 175a-176a). A letter on official stationery (Appendix p. 73a) dated March 31, 1958 from the Mayor to Dr. Taliaferro reveals that sometime prior to that date Dr. Taliaferro wrote a letter to the Mayor seeking a postponement of the date of the sale of the pool. The Mayor replied that the date could not be changed, but that “ The end result can be accomplished without delaying the proposed sale” (Plain tiffs’ Exh. 8). When asked to explain this sentence, the Mayor replied: “ A. I have often wondered myself what I meant. It was that I wanted everybody to have an op portunity to bid on the pool” (Appendix p. 161a). By action of the City Council, the date of the sale was changed from March 18 to April 1 by resolution dated February 11 3, 1958. Dr. Taliaferro had apparently sought another change in the sale date to enable his corporation to raise funds with which to purchase the pool, but see the testi mony of Dr. Taliaferro, himself, as to when he sent his letter with relation to the first and second sale (Appendix p. 75a). Dr. Taliaferro never produced a copy of the letter which he wrote to the Mayor requesting postpone ment or the original of the Mayor’s letter to him (Appendix pp. 72a-74a). He claimed that he had lost his copy. The Mayor testified that he could not produce the original because he had “ handed it back” to Dr. Taliaferro (Ap pendix p. 160a). The original had been officially received by the City Clerk (Appendix p. 161a). On the other hand, Dr. Taliaferro’s statement regarding the letter, which was taken prior to the Mayor’s testimony, did not even suggest that the Mayor had returned the original to him or that he had met the Mayor at which time the letter was handed back or that he had talked to the Mayor over the telephone regarding a postponement, as the Mayor had testified (Appendix pp. 160a-163a). In fact, Dr. Taliaferro testified repeatedly that he stayed away from city officials for fear of involvement with them in connection with the sale of the pool (Appendix pp. 66a, 74a). Dr. Taliaferro also testified that in his letter to the Mayor he told him in sub stance: “ We were trying to raise money, and as I said before, as far as we knew, we didn’t know whether there were any other purchasers; got a letter back from him saying no. It was not an official letter or anything of that sort, because when I tell you what I told you before about not going to them, that is correct” (Appendix p. 74a). The first public auction of both pools took place on April 1, 1958. Dr. Taliaferro’s high bid was only $65,000 for the purchase of Lindley Pool although he had been authorized to bid a high of $85,000. At this sale, much to everyone’s 12 surprise, a bidder from outside of the city appeared and began outbidding Dr. Taliaferro. His bid of $75,000 for the pool was the high of the day. Nevertheless, Dr. Talia ferro stopped bidding (Appendix p. 36a). His corporation at that time had practically no assets with which to pur chase a pool. No stock had actually been issued and as of June 27, 1958 the corporation had actually sold by way of paid-in subscriptions less than 25% of its authorized stock subscription of $100,000. And at the time it made its bid of $85,000 at the second sale, the corporation had only $8,000 in cash with which to make the required 25% down payment (Appendix pp. 50a, 58a). On April 8 the City Council turned down the bid of $75,000 on the Lindley Pool and the bid of $9,550 on the Nocho Pool as “ inadequate,” although it was community common knowledge that Dr. Taliaferro’s group was the only local group making an effort to purchase the Lindley Pool (Plaintiffs’ Exhs. 20 and 21) and the Mayor had been so advised in the letter written to him by Dr. Taliaferro. Thereafter, on April 30, 1958 a resolution was adopted by the City Council providing for a second sale of both pools on June 3, 1958. On May 23,1958, the court below handed down its opinion holding that appellants were not entitled to an injunc tion enjoining sale of Lindley Pool and that appellants had failed to state a claim upon which relief could be granted. However, it deferred entry of a decree for a period of thirty days after the sale to allow plaintiffs to show that the sale was not bona fide in the sense that there was collusion between the city and the successful bidder regarding the future use of the pool. Thereafter, on June 3, the second auction sale was held. This time Dr. Taliaferro, without any real com petitive bidding, bid the $85,000 which he had been an- 13 thorized to bid.2 Two days later, the City Council passed a resolution accepting the bid of $85,000; two eouneilmen dissented (Plaintiffs’ Exh. 15). The resolution had been introduced by Lewis, the councilman to whom Dr. Talia ferro had spoken concerning his plan to organize a group to purchase the pool, the man who was chairman of the Parks and Recreation Commission when Lindley Pool was constructed, the man who had previously worked with Dr. Taliaferro in sponsoring swimming contests in Lindley Pool, and the man whose opinion as to the amount which the city should receive from the sale of the pool coincided with the amount of the total capitalization of Dr. Talia ferro’s corporation. A down payment of 25 % of the purchase price was required by the terms of the sale. However, Dr. Talia ferro’s corporation did not in fact possess sufficient assets, either in capital, cash, stock subscriptions or other prop erty to enable it to make the 25% down payment (Ap pendix p. 58a). It was able to complete the 25% down payment on June 18, 1958 when it received a deed from the city to the pool property as a result of a loan of approximately $6,000 from one of its officers, appellee Coble (Appendix p. 81a). Appellee Coble is a general contractor who, admittedly, has no interest in swimming but who, in the past and at present, had and has valuable construction contracts with the city (Appendix p. 76a). He made a loan to the corporation, not from his personal funds, but from the funds of his construction company (Appendix p. 82a). 2 A bid was made for Noeho Pool -which was not completed and since that time Nocho Pool has remained closed with no further action with regard thereto (Appendix pp. 158a-159a). 14 In accordance with the terms of the sale, the balance of the purchase price could be paid in five equal annual installments with interest at 6%. Since the corporation was not financially able to pay the full purchase price at the time of the transfer of the title, it was necessary for the corporation to take advantage of the liberal sale terms. A deed of trust was therefore executed by the corporation, in which one of the attorneys for the city is named trustee, to secure payment of a note for the balance of the purchase price. By terms of the deed of trust, title to Bindley Pool remains in the trustee until reconveyed to the corporation after the full purchase price has been paid, plus interest and other amounts which may have been expended by the trustee or the city, or until such time as the property has been conveyed to the purchaser after a foreclosure sale. In the event of failure or neglect on the part of the corporation to pay any installment due on the note for a period of ten days, the holders of the note, in this case the city, may, at their option, declare the whole sum due and payable and, upon application of the city, the trustee is authorized to sell the property to satisfy the amount due (Plaintiffs’ Exh. 10). At the time of the hearing on the supplemental complaint, the financial statement of the corporation showed that it had, as of December 31, 1958, by way of cash in the bank, $62.16 (Plaintiffs’ Exh. 12). Dr. Taliaferro testified that since December 31, 1958 he had received additional stock subscriptions bringing the total cash in the bank to about $300.00 (Appendix p. 167a). The corporation’s first annual installment of $12,750.00, plus 6% interest, on the pur chase price of the pool was due on July 1, 1959. In addi tion, the corporation had, at the time of the final hearing, outstanding loans of $6,585.00 (Plaintiffs’ Exh. 12). When the pools were first offered for sale, the question arose as to whether a local zoning ordinance, restricting 15 activities in residential zones to activities “ operated on a non-profit basis,” would be applicable to the purchaser of Lindley Pool. The high bidder at the first sale was not informed of this restriction, but the GPC was, although the city had not announced any such restriction prior to the first sale (Appendix p. 39a). After the first sale, the City Council gave consideration to the question and ex pressly considered the effect which this ordinance would have on prospective bidders at the second sale. The Finance Committee of the Council, to which the matter was re ferred, recommended that the ordinance not be changed and the majority of the Council approved this recommen dation (see Minutes of April 30, 1958). Two eouncilmen voted no. However, several months after the sale of the pool, on November 3, 1958, the City Council did change the language of the ordinance which read “ operated on a non-profit basis” to read “ operated by clubs or other organizations, no part of the net earnings of which inures to the benefit of any private person, corporation, or share holder” (Defendants’ Exh. 1). When the corporation so licited sales of stock from the public it advised: “ The pool shall be run in a businesslike manner, making charges for admission as are necessary and possibly pay a return on your investment. There will be no memberships or dues. Admission by fees as above” (Plaintiffs’ Exh. 20). At the first auction of the pool on April 1, 1958, the attorney for the city was present along with the appellee city manager. At this time the city attorney, in the presence of the city manager, assured Dr. Taliaferro that if the court below should hold in the instant case, which was then pending in that court, that the city could not sell Lindley Pool, as contended by appellants, the city would refund any money paid down on the purchase price (Appendix pp. 44a-45a). Appellants had filed a lis pendens in the state court (Appendix p. 182a). Dr. Taliaferro 16 had previously appeared before a public meeting of the City Council and requested the Council to advise whether the purchaser’s money would be thus refunded, but the Council would not reply (Appendix p. 44a). The under standing between Dr. Taliaferro and the city attorney, made in the presence of the city manager, was therefore an understanding apart from the terms of the sale and an understanding not generally shared by the public. Ap pellants’ challenge to the city’s power to sell the pool had been widely publicized and there was so much doubt as to the legality of the city’s action that, as the court below pointed out, the pendency of the litigation had affected the corporation’s ability to sell shares (Appendix p. 184a). On June 19, 1958, the appellee corporation resumed operation of the Lindley Pool for the general admission of the white public, nominal admission fees of 15, 30 and 50 cents being charged (Appendix pp. 50a-51a, 70a). The pool had been closed since the end of the 1957 session. It is the announced policy of the appellee corporation not to admit Negroes to the pool, in promised conformity with the city’s policy. The corporation’s policy was set forth in a leaflet distributed by the officers of the corpora tion in the Greensboro community: Greensboro Pool Corporation is made up of a group of community minded persons who are trying to purchase the pool from the City so that it can be main tained as a white public pool for all of those young sters who are not fortunate enough to be either mem bers of a Country Club or live in a community united enough to build their own pool (Plaintiffs’ Exh. 20). In addition to the facts set forth above, appellants ask this court to take judicial notice of a former provision of the Charter of the City of Greensboro which appellants failed 17 to ask the court below to take judicial notice of but which was in effect at the time of the sale. This provision is former Section 100 of said Charter which made it a misde meanor for an officer of the city or a corporation or firm in which an officer has an interest to enter into any con tract or agreement with the city or buy any goods or prop erty from the city. (Private Laws N. C., Extra Sess. 1924, Ch. 9; Private Laws N. C., 1927, Ch. 230).3 3 Charter recently amended by Session Laws of North Carolina, 1959, Chapter 1137. Section 100 has been deleted from the revised charter and a new provision dealing with conflict o f interest provided. Article 2, Snbchapter D, Sec. 4.131. This court may take judicial notice of matters o f common observation, o f statutes, records or public documents not included in the find ing of lower courts. New York Indians v. United States, 170 U. S. 1, 32; Jackson v. Denver Producing Refining Co., 96 F. 2d 457 (10th Cir. 1938) ( City charter provision). 18 A R G U M E N T I. The court below should have found the additional uncontroverted facts set forth above and should have enjoined all appellees from continuing to exclude ap pellants from Lindley Pool solely because of their race and color. Appellants complain to this court that immediately fol lowing this court’s decision in Simians v. City of Greens boro, 246 F. 2d 425 (1957), the Greensboro City Council considered a petition by Negro residents requesting that Negroes be permitted to use the facilities of Lindley Pool. The Council denied this request, continued operation of Lindley Pool as a white public pool for the remainder of the 1957 season, and then entered into a sales arrange ment, the purpose and effect of which has been to continue Lindley Pool as a recreational facility available to any member of the white public. The relief sought by appellants in their supplemental complaint was an injunction enjoining the Greensboro Pool Corporation and its agents as well as the City of Greens boro and its agents from continuing to exclude appellants from Lindley Pool solely because they are Negroes. This relief was sought on the ground that exclusion of Negroes from Lindley Pool results from an understanding between the corporation and the city that the pool would be sold to this particular corporation for a nominal sum in return for which the corporation would continue the public nature of the pool and the city’s racial policy in order to preserve harmonious relations between the races in Greensboro. On this appeal appellants contend that the court below erred in not finding certain additional uncontroverted facts 19 which establish conclusively the collusive nature of the sale arrangement and abused its discretion in refusing to enjoin the continued exclusion of Negroes from Lindley Pool. Appellants, therefore, ask this court to review all the facts in this case, and after such review and concurrence in appellants’ position, direct the court below to enter an order enjoining all appellees from refusing to permit appellants and members of their class to use Lindley Pool upon the same terms and conditions applicable to white residents. Appellants contend that the totality of the uncontro verted facts leads to the inescapable conclusion that there was collusion between city officials and officials of the Greensboro Pool Corporation with respect to the sale and future use of Lindley Pool. Appellants also contend that this conclusion must be reached when these facts are viewed against the background of common knowledge about the perennial attempts of legislative bodies of southern states and communities to evade the impact of federal decisions on racial segregation policies in the area of publicly owned facilities. The primary fact evidencing collusion in this case is the fact that the man who organized the corporation to which the city sold Lindley Pool is one of the city’s own officials. Dr. Taliaferro was not only the organizer of that corporation, but is also the president of the Greens boro Pool Corporation. He is one of a three-man board of directors'of the corporation who own the only voting stock. According to the local press, Dr. Taliaferro had said that the board would be chosen from persons who have expressed an interest in keeping the pool open as a white facility (Plaintiffs’ Exh. 21). In addition to being the organizer and president of the corporation, the facts 20 reveal that this city official is the prime mover of all cor porate activity inasmuch as the corporation’s board of directors has not met since the corporation’s organizational meeting of March 4, 1958 and since Dr. Taliaferro and the other two board members own all the voting stock. Not only is Dr. Taliaferro an official of the city, per se, but he is an official who, as a member of the Parks and Recreation Commission, had direct supervision over the Lindley Pool, itself, and participated in the reaffirmation of the racial segregation policy applicable to Lindley Pool when the question was raised in the Commission on October 10, 1957, following this court’s decision in the Simkins case, supra. In short, the corporation to which the city sold the pool in controversy is a corporation formed by an officer of the city who, in his official capacity, dealt with the pool and enforced the very policy of segre gation with respect to the pool which is challenged by appellants in this action. To this primary fact evidencing collusion must be added the many facts cited above, but certain of these facts must be re-emphasized here. In addition to the fact that the corporation to which the city sold the pool was formed and is being operated and controlled by a city official whose official duties con cerned Lindley Pool, it is admitted that the corporation was formed for the sole purpose of purchasing the pool and continuing its operation as a pool open to the white public of the city only, since the city would be compelled to admit Negro residents, and that everyone in Greensboro knew and understood this. Since the City Council’s determination to sell the pool was based on its conclusion that “ joint use of the swimming pools owned by the city at any time in the foreseeable future would inevitably and gravely disrupt the existing 21 harmonious relations between the races,” it is clear that it intended that the pool be sold only to those committed to a whites only policy in order that these so-called har monious relations continue. Obviously, if the pool were sold to private persons who would admit both Negroes and whites, the city’s only reason for selling the pool would have been perverted. The city, therefore, had to be sure that the persons to whom the pool was sold were preservers of segregation. Clearly, in the case of Mr. Samet, the man from Mount Airy who was the highest bidder at the first sale, and who appeared to everyone’s surprise, the City Council could not be sure. But in the case of Dr. Taliaferro, their appointee to the Parks and Recreation Commission, he had made public his stand. It was community common knowledge in Greensboro and knowledge specifically transmitted to the Mayor by Dr. Taliaferro that Dr. Taliaferro’s group was the only group in Greensboro making any effort to purchase the pool. At the first auction sale both the attorney for the city and the city manager were present and knew, of their own knowledge, that in addition to the stranger from outside the city who made the high bid of $75,000, Dr. Taliaferro made the only other bids (Appendix pp. 146a- 147a). So that when the city rejected the high bid of $75,000 for the purchase of Lindley Pool, on the grounds of inadequacy, the city knew that other than Dr. Taliaferro there were not likely to be any other bidders from whom a more adequate price could have been received. And it cannot be claimed that few bidders appeared at the first sale because insufficient notice of the sale was given since, admittedly, the sale complied with state law as to notice and the city’s intention to dispose of the pool by sale had been publicized since the date of its resolution of November 18, 1957. In view of these facts it becomes clear that the rejection of the first bid was not a good 22 faith rejection on the ground of inadequacy, but an ac commodation for Dr. Taliaferro who wrote the Mayor that he needed more time. This also becomes clear when the testimony of Mr. Lewis and the Mayor is considered to the effect that nobody could make a profit out of the pool (Appendix pp. 137a, 153a), and when we consider the Council’s action with respect to the ordinance claimed to be applicable to Lindley Pool. After the first sale the question whether the pool would be subject to a local ordinance requiring nonprofit opera tion of pools in residential areas such as the area in which Lindley Pool is located arose. The City Council expressly considered the effect that the restriction would have on prospective bidders at the second sale and a majority of the Council voted to continue the restriction. This action can only be construed in the context of this case as an action designed to limit the number and character of prospective bidders, and especially in view of the Council’s rejection of the first high bid on grounds of financial in adequacy. After the first sale on April 1, 1957, there was consider able doubt raised in the community as to the legality of the proposed sale because of the pendency of this case. It is obvious that this doubt then operated to restrict the num ber of prospective bidders, but it did not operate to restrict the efforts of Dr. Taliaferro because he had been assured by the city attorney, in the presence of the city manager, that if the court below should hold that the city did not have power to sell the pool, as contended by the appellants, the money which he had paid down would be refunded (Appendix pp. 44a-45a). Certainly, without this assurance, Dr. Taliaferro could not have made a second bid because his corporation would have no funds with which to repay persons whose sub 23 scription funds would be used to purchase the pool. This assurance thus gave Dr. Taliaferro an advantage over the general public. As far as the general public knew there was no such assurance, as Dr. Taliaferro had appeared before a public meeting of the Council and requested such assurance which was not given. Once the Greensboro Pool Corporation became the high bidder, Mr. Lewis, the councilman to whom Dr. Taliaferro had spoken concerning his plans, lost no time in introduc ing a resolution in the City Council accepting Dr. Talia ferro’s bid which was only $10,000 more than the bid which was turned down. The pool was only two years old and had cost the city approximately $215,000, exclusive of the value of the land. The significance of such quick acceptance must also be viewed against the fact that the first bid was turned down as inadequate. It must also be viewed against the fact that the City Council did not accept the high bid of $9,550 for the Nocho Pool and has left that pool stand ing closed rather than accept a bid which it considered in adequate. The City Council has not taken any action with respect to Nocho Pool although the resolution of November 18, 1957, providing for the sale of the pool, declared that the city no longer has any need for this pool. The resolu tion also provided that any money received from the sale of these pools would provide other recreational facilities which would benefit a larger number of people in the com munity. The fact is that so little money has been realized from the sale of Lindley Pool, since the major part of the purchase price is still owed to the city, that the chances are that the latter part of the resolution will be forgot ten. Because Dr. Taliaferro’s corporation did not have the money with which to pay the full purchase price of the pool, the city still has a considerable financial interest in 24 the pool, as evidenced by the note given it for the balance due on the purchase price by the corporation and which is secured by the deed of trust. In the event of default on the part of the corporation with respect to any install ment due on the note, the city has the power to declare the whole sum due and payable and may request the trus tee to sell the pool to pay the amount due. On the other hand, it may elect to defer payments or may simply take no action. In any event, continuation of the city’s policy of limit ing Lindley Pool to the white public is nevertheless as sured, as stated above, because the pool corporation’s only reason for being is to continue the operation of Lindley Pool as a white public facility. In conclusion, therefore, the understanding between the city and the pool corporation is as follows: The pool would be sold to Dr. Taliaferro’s corporation, the only group which had been organized by local white citizens for the sole, express purpose of taking over the pool and operat ing it as it had been operated by the city; the purchase price of the pool would be equal to or less than the total capitalization of the corporation; if the court should hold that the city could not sell the pool, as contended by ap pellants, the sale would be rescinded by agreement of the parties and the city would refund to the corporation any amount paid on the purchase price; in exchange for getting the pool at a fraction of its actual cost to the city, the cor poration would continue to operate the pool as a public pool, charging the usual nominal admission fees, and the corporation would continue to enforce the city’s policy of limiting use of the pool to the white members of the public only, in order to preserve “harmony” between the races. As the court held in Lawrence v. Hancock (S. D. W. Ya. 1948), 76 F. Supp. 1004, what has taken place here “ . . . 25 is, clearly, but another in a long series of stratagems which governing bodies of many white communities have em ployed in attempting to deprive the Negro of his constitu tional birthright; the equal protection of the laws” (at 1008). The sale of Lindley Pool came about solely as a result of the fact that Negro residents of the community peti tioned for the right to use it. When the matter was brought before the City Council, this court had just handed down its decision in Simkins v. City of Greensboro, supra, hold ing that Negro residents of Greensboro could not be ex cluded from Gillespie Park Golf Course simply because the city had entered into a lease arrangement. In that case it was charged that the city had entered into that arrange ment in order to avoid its duty to operate the course on a nonsegregated basis. There too, there had been a petition from the Negro community to use the course prior to the city’s entering into the lease arrangement. It was thus clear to the City Council that the leasing of a public recreational facility to a private corporation would not defeat the right of Negroes to use such a facility. The City Council, therefore, resorted to the kind of sale arrange ment which has been entered into here. Apparently relying on the language of this court and the court below in the Simkins ease that the city, under the terms of the order in the Simkins case, could part with ownership of the prop erty by bona fide sale, the City Council here resolved to dispose of the swimming pool by sale. Of course, a bona fide sale might have been effected in this case if the city had sold the pool to the high bidder at the first sale, since the high bidder at that sale was a person from outside the city who had no connection with the city, was not a city official, and did not appear to have any real interest in continuing the operation of the pool as a pool open to 26 the white public generally but let it be known that he was interested in operating the pool for profit as a private club (Appendix p. 47a). When the city turned down a bona fide bid on the obviously sham ground of inadequacy and accepted a bid only slightly higher from one of its own officials who had publicly announced that he would con tinue the operation of the pool as the city had operated it, the sale became one which requires careful scrutiny by the courts. A careful scrutiny of the facts here leaves no room for sanction by the federal courts which must, under the federal civil rights statutes, zealously guard against state actions which subvert constitutional guarantees. The situation here is analogous to the situation involv ing the right of Negroes to participate in the election of public officials. A review of some of the federal court cases in this area shows that by one stratagem after the other southern legislators have sought, unsuccessfully, to avoid the impact of the Fourteenth and Fifteenth Amend ments on the voting rights of colored citizens. Guinn v. United States, 238 U. S. 347; Nixon v. Herndon, 273 U. S. 536; Nixon v. Condon, 286 U. S. 73; Lane v. Wilson, 307 U. S. 268; Smith v. AllwrigM, 321 U. S. 649; Schnell v. Davis, 336 U. S. 933, affirming 81 F. Supp. 872 (S. D. Ala. 1949); Rice v. Elmore, 165 F. 2d 387 (4th Cir. 1947), cert, den. 333 U. S. 875; Baskin v. Brown, 174 F. 2d 391 (4th Cir. 1949); Terry v. Adams, 345 U. S. 461. In Rice v. Elmore, supra, this court said at 392: “ The Fourteenth and Fifteenth Amendments were written into the Constitution to insure to the Negro, who had recently been liberated from slavery, the equal protection of the laws and the right to full participation in the process of government. These amendments have had the effect of creating a federal basis of citizenship and of protecting the rights of 27 individuals and minorities from many abuses of gov ernmental power which were not contemplated at the time. Their primary purpose must not be lost, sight of, however; and no election machinery can be upheld if its purpose or effect is to deny to the Negro, on account of his race or color, any effective voice in the government of his country or the state or com munity wherein he lives.” Similarly here, no sale arrangement in which the state has a financial or other interest can result in the exclusion of Negroes from a public recreational facility where the purpose or effect of such arrangement is to deny to the Negro, on account of his race or color, an equal oppor tunity to participate in the facility. See Cooper v. Aaron, 358 U. S. 1, 19. The purpose of the City Council in enter ing into the sale arrangement here is clear— to keep Negroes from swimming in Lindley Pool on the consti- tionally invalid ground that racial disharmony will result. Cooper v. Aaron, supra. The effect is also clear; any white residents of Greensboro may still swim in Lindley Pool— a pool constructed with the tax monies of all the residents of Greensboro, Negro and white. As the Mayor said in his letter to Dr. Taliaferro: “ The end result can be accom plished without postponing the sale.” The situation here is also analogous to the situation in the School Segregation Cases wherein the federal courts are now dealing with one stratagem after the other de signed by southern legislators to evade the effect of the Supreme Court’s decisions in those cases. These devices have included attempts to lease school buildings and pay tuition of pupils to attend so-called private schools and attempts to close schools. All of these attempts to deny Negro rights have been struck down by the federal courts. Cooper v. Aaron, supra, Aaron v. Cooper, 261 F. 2d 97 28 (8th Cir. 1958); James v. Almond, 170 F. Supp. 331 (E. D. Va. 1959); James v. Duckworth, 170 F. Supp. 342 (E. D. Ya. 1959), aff’d 267 F. 2d 224 (4th Cir. 1959), cert. den. Oct. 12, 1959, 28 L. W. 3110; Aaron v. McKinley, 173 F. Supp. 944 (E. D. Ark. 1959). Similarly here, this court must once again secure the right of Negro residents of Greensboro to participate in public recreational facilities against this latest attempt by their city to defeat their right to so do as this court did in the Simkins case. CONCLUSION For all of the foregoing reasons, the judgment below should be reversed, and the court below directed to issue an injunction enjoining all appellees from refusing to admit appellants, and members of their class, to the Lindley Pool on the same terms and conditions applicable to white residents of Greensboro solely because of the race and color of appellants. Respectfully submitted, J. K. Lee Major S. H igh 427 Bembow Road Greensboro, North Carolina C. 0. P earson 2031/2 E. Chapel Hill Street Durham, North Carolina Constance B aker Motley Thurgood Marshall 10 Columbus Circle New York 19, New York Attorneys for Appellants Charter o f the City o f G reensboro Section 100. City officers not to have interest in city contracts; exceptions.— That no officer of the city, and no corporation or firm in which any such officer has an in terest, shall enter into any contract or agreement with the city, or sell any goods or property to the city, or buy any goods or property from the city; and any person violating any of the provisions of this section shall be guilty of a misdemeanor, and punished in the discretion of the court; provided, that nothing contained in this sec tion or any other law of the State shall be construed to prevent the city from taking by condemnation property of any councilman or other officer of the city, or of any corporation of which any councilman or city officer has any interest, or to prevent the city from reimbursing any of the class named in this section for money actually advanced and expended on behalf of the city for any governmental purpose, or purpose which the council may determine is proper for the city to pay; but any such payment must not include any profit to any one in the class enumerated above. Any councilman interested in any such matter shall not vote thereon; provided further, that until such time as other provision is made, the council is authorized and directed to contract with the owners of property in District Number One to provide street lighting, street repairs, sanitary advantages, health and social work, and other governmental services and facilities in said dis trict, or for the residents thereof, and to pay therefor a sum not exceeding the actual cost thereof, and not exceed ing a fair proportion of the tax revenue derived from said district for such purposes; provided, that nothing contained in this act or any general law of the state shall prevent publication of notices and other advertising matter 30 in any newspaper at the lowest commercial rate filed in the offices of the clerk of the superior court (a copy of which shall be filed with the city clerk), or from borrowing money from any bank at current or lowest obtainable rate of interest, not exceeding six per centum per annum, or from selling bonds to any bank upon lowest competitive bid, or from carrying an account with any bank in said city. (Priv. Laws, Extra Sess. 1924, ch. 9; Priv. Laws, 1927, ch. 230.)