Unfortunatly this occured not just in North Carolina but in other states and even other countries. The Eugenics program in the United States has been around since 1881. Hitler learned of it and it inspired him. ugh.
It was first theorized by Sir Francis Galton, cousin of Charles Darwin (altho apperantly a form of it was implimented in ancient Greece) and then implimented by american Charles Davenport. Many historicial figures supported him as well (like Teddy Roosevelt, Winston Churchill, H.G. Wells, Alexander Graham Bell*who incidentally is related to Teddy Roosevelt by marriage*, and John Kellogg of the cereal fame).
Other countries that have done it (and some that still do) are the UK, Canada, Japan, Sweden, and Brazil.
Most people tho hear the word Eugenics and think Star Trek (The Eugenics War) not knowing the reality of it.
http://en.wikipedia.org/wiki/Eugenics