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X-4371 BROOKINGS STATE BAH v. FEDERAL RESERVE BANK OF SAN M T C I S C O . DECISION ON KOTION TO DISMISS. WOLVERTON, D. J . May 19, 1 9 2 5 . Thu f i r s t q u e s t i o n i n t h i s c a s e a r i s e s u n d e r tho new a c t which was approved February 1 3 , 1925, and which i s "brought i n t o r e q u i s i t i o n h e r e f o r showing t h a t t h i s c o u r t h a s been d e p r i v e d o f i t s j u r i s d i c t i o n to e n t e r t a i n the cause. Two o r t h r e e s e c t i o n s of t h a t s t a t u t e a r c r e l i e d upon f o r t h a t c o n t e n t i o n . It is pro- v i d e d by s e c t i o n 1 2 : "Thalia? d i s t r i c t court s h a l l have j u r i s d i c t i o n o f any a c t i o n or s u i t "by or . a g a i n s t a n y c o r p o r a t i o n upon t h e ground t h a t i t was i n c o r p o r a t e d "by or u n d e r an Act o f C o n g r e s s ; P r o v i d e d , t h a t t h i s s e c t i o n s h a l l n o t a p p l y t o Any s u i t , a c t i o n , o r p r o c e e d i n g "brought by o r a g a i n s t a c o r p o r a t i o n i n c o r p o r a t e d by o r u n d e r an Act o f Congress w h e r e i n t h e Government o f t h e U n i t e d S t a t e s i s t h e owner o f no r e than o n e - h a l f o f i t s c a p i t a l stock.11 S e c t i o n 14 i s a l s o c i t e d , w h i c h r e a d s ; "That t h i s a c t s h a l l t a k e e f f e c t t h r e e months a f t e r i t s approval; but i t s h a l l not a f f e c t c a s e s t h e n p e n d i n g i n t h e Supreme Court, nor s h a l l i t a f f e c t t h e r i g h t t o a r e v i e w , pr t h e mode o r time f o r e x e r c i s i n g t h e same, a s r e s p e c t s any judgment o r d e c r e e e n t e r e d p r i o r t o t h e d a t e when i t t a k e s effect." Now, t h e r e i s t h o i n c l u s i o n i n t h e f i r s t r a s e o f c e r t a i n c o r p o r a t i o n s which own s t o c k t o e x c e e d o n e - h a l f of the c a p i t a l s t o c k . a l l other corporations. That must be r e a d a s e x c l u d i n g And i n t h e s e g o n d e a s e , where X-4371 -2- t h e s t a t u t e i n c l u d e s t h e r i g h t o f r e v i e w , o r t h e mode or t h e t i n e o f e x e r c i s i n g t h e sruue, a s r e s p e c t s any juilgmont o r d e c r e e e n t e r e d p r i o r t o t h e d a t e when i t takes e f f e c t , t h e r e i s t h e i n c l u s i o n o f t h e j u d g n e n t and d e c r e e , and we nust read i t a s the e x c l u s i o n of a l l other s u i t s pending w h e r e t h e c a s e s h a v e n o t gone t o judgment o r d e c r e e . Based upon t h a t i d e a , the s t a t u t e i t s e l f the court is. of the o p i n i o n t h a t i s not p r o s p e c t i v e , but r e t r o s p e c t i v e . I h a v e n o t a t t e m p t e d t o go i n t o t h e c o n s t i t u t i o n a l q u e s t i o n , w h i c h h a s boon a b l y a r g u e d by t h e p l a i n t i f f ' s c o u n s e l . What h e h a s h a d t o s a y i s q u i t e p e r s u a s i v e i n my mind, b u t , f o r n y p r e s e n t u n d e r s t a n d i n g and my p r e s e n t o p i n i o n , b e l i e v e that the s t a t u t e i t s e l f retrospective, i s not p r o s p e c t i v e , and t h a t t h a t s t a t u t e , I but as i t a p p l i e s to t h i s case, w i l l cut o f f f u r t h e r l i t i g a t i o n . Tho o t h e r q u e s t i o n t h a t i s p r e s e n t e d i s w h e t h e r o r n o t t h e c o m p l a i n t shows t h a t t h e r e i s a f e d e r a l q u e s t i o n involved. Mow t h e c o m p l a i n t , i n the f i r s t p l a c e , alleges; "That t h e d e f e n d a n t , F e d e r a l R e s e r v e Bank o f San F r a n c i s c o , i s a c o r p o r a t i o n o r g a n i z e d , c r e a t e d and e x i s t i n g u n d e r and by v i r t u e o f t h e l a w s o f t h e U n i t e d S t a t e s , and b e i n g t h o F e d e r a l r e s e r v e s y s t e m o f t h e U n i t e d S t a t e s , the p r i n c i p a l o f f i c e of which i s i n the c i t y o f San Francisco, California; t h a t s a i d bank i s d o i n g b u s i n e s s w i t h i n t h o S t a t e o f Oregon rnd h a s d u l y o r g a n i z e d a b r a n c h bank i n pursuance of t h e F e d e r a l Reserve A c t , which s a i d branch bank i s l o c a t e d i n P o r t l a n d , Multnonah County, Oregon, a n d t h a t s a i d d e f e n d a n t i s c a r r y i n g on t h e b u s i n e s s o f a r e s e r v e bank and i s d o i n g b u s i n e s s w i t h i n t h e S t a t e o f Oregon. 1 1 In a d d i t i o n to t h a t , the complaint a l l e g e s : X-4371 -3- "That t h o F e d e r a l Rvservo Br.nk of San F r a n c i s c o , i n a c c o r d a n c c w i t h tho p o l i c y a d o p t e d by the F e d e r a l R e s e r v e Board and nmzorcus o t h e r F e d e r a l R e s e r v e Banks of the ,• U n i t e d S t a t e s , h a s d e t e r m i n e d upon a p o l i c y of p a r c l e a r a n c e f i r a l l c e n t e r bard's which upon j o i n i n g s a i d s y s t e m a r e r e q u i r e d t o af;ree t r c r . i t a t p a r , and t h e F e d e r a l R e s e r v e Bank of S?a F r a n c i s c o , about t h e . l a s t of 1919 o r t h e f i r s t of 1 9 2 0 , d e t e r m i n e d t o f o r c e a l l banl:s t h r o u ^ o u t t h e t w e l f t h F e d e r a l R e s e r v e d i s t r i c t , and p a r t i c u l a r l y t h e p l a i n t i f f h e r e i n , to c l e a r c h e c k s a t p a r and d o t o m i n e d to r e q u i r e t h e p l a i n t i f f brnk t o p e r f o r m t h e s e r v i c e s a f o r e s a i d without compensation to i t . " And t h e n i t g o e s on to cite particular instances. Those twe c l a u s e s c c m o r i s e a l l tladt i s c o n t a i n e d i n t h e c o m p l a i n t t o u c h i n g t h e f e d e r a l q u e s t i o n , and t h e q u e s t i o n a r i s e s w h e t h e r t h a t i s s u f f i cicbit t o p r e s e r v e t h e comp l a i n t as a good p l e a d i n g . How, t h a t i t m y n o t be s a i d t h a t I have o v e r l o o k e d t h e p r i n c i p l e upon which tho p l e a d i n g m s t q u o t e from d e f e n d a n t ' s b r i e f . 2 3 4 U. S . 2 7 2 , stand, I will I n t h e c a s e o f H u l l v . Burr, the court says; "The g e n e r a l r u l e i s f i r m l y e s t a b l i s h e d t h a t a s u i t d o e s n o t so a r i s e u n d e r t h e l a w s o f t h e U n i t e d S t a t e s u n l e s s i t r e a l l y and s u b s t a n t i a l l y i n v o l v e s a d i s p u t e or c o n t r o v e r s y r e s p e c t i n g t h e v a l i d i t y , c o n s t r u c t i o n , or e f f e c t ; o f sonic law of t h e U n i t e d S t a t e s , upon t h e d e t e r m i n a t i o n o f which t h e r e s u l t d e p e n d s . And t h i s o u s t appear n o t by mere i n f e r e n c e , b u t by d i s t i n c t averments a c c o r d i n g t o t h e r u l e s of good p l e a d i n g ; n o t t h a t m a t t e r s o f law must be p l e a d e d a s s u c h , b u t t h a t t h e e s s e n t i a l f a c t s a v e r r e d must show, n o t a s a m a t t e r of mere i n f e r e n c e o r argument, b u t c l e a r l y and d i s t i n c t l y , t h a t s u i t a r i s e s under some f e d e r a l l a w . " There i s a n o t h e r c a s e which I w i l l r e a d f r o m "When a s u i t d o e s not r o a l l y and s u b s t a n t i a l l y i n v o l v e a d i s p u t e or c o n t r o v e r s y a s t o t h e e f f e c t o r c o n s t r u c t i o n of t h e C o n s t i t u t i o n or l a w s of t h e U n i t e d S t a t e s , upon t h e d e t e r m i n a t i o n o f w h i c h t h e r e s u l t depends, i t i s n o t a s u i t a r i s i n g u n d e r t h e C o n s t i t u t i o n or l a w s . And i t n a s t a p p e a r on t h e r e c o r d , by a s t a t e m e n t i n legpl, ,->nd l o g i c a l form, such a s i s X-4371 -4- r e q u i r e d i n r o o d p l u a d i n r , t h a t t h e s u i t i s one which d o c s r e a l l y and s u b s t a n t i a l l y i n v o l v e a d i s p u t e o r c o n t r o v e r s y a s t o a r i ^ h t which depends on t h e c o n s t r u c t i o n o f t h e Cons t i t u t i o n o r sonc law o r t r e a t y o f t h e U n i t e d S t a t e s , b e f o r e j u r i s d i c t i o n can be m a i n t a i n e d on t h i s g r o u n d . " That i s the s t a t e n o n t o f C h i e f J u s t i c e F u l l e r i n w e s t e r n Union T e l e g r a p h Co. v . Ann Arbor R a i l r o a d Conoany, 178 U. S. 239. A f u r t h e r r e f e r e n c e i s nade t o t h e r u l e i n Far s o n v . C i t y o f C h i c a g o , 138 Fed. 1 8 4 . There the c o u r t s a y s : "The c o u r t n u s t l o o k t o t h e s u b s t a n c e of the b i l l to determine whether t h i r d i s i n f a c t a f e d e r a l q u e s t i o n p r e s e n t e d , or w h e t h e r t h e f e d e r a l q u e s t i o n , i f t h e r e be one, i s b u t i n c i d e n t a l to t h e c o n t r o v e r s y . . . . The f e d e r a l c o u r t s s h o u l d be slow t o assur.e j u r i s d i c t i o n , u n l e s s i t appears that a f e d e r a l q u e s t i o n i s n e c e s s a r i l y involved.M What i s n c a n t t h e r e by an i n c i d e n t a l q u e s t i o n maybe i l l u s t r a t e d by s u i t f o r t i t l e u n d e r a p a t e n t , where i t is q u e s t i o n e d a s t o w h e t h e r t h e p a t e n t i t s e l f was l e g a l l y issued. That i s i n c i d e n t a l - t h a t d o e s n o t i n v o l v e a federal question. How, we a l l u n d e r s t a n d v e r y w e l l what a f e d e r a l q u e s tion is. I t i s a q u e s t i o n t h a t a r i s e s "under t h e C o n s t i t u t i o n o r l a w s of the U n i t e d S t a t e s , o r t r e a t i e s made or which s h a l l bo nade u n d e r t h e i r a u t h o r i t y . This c l a s s i s connonly c a l l e d f e d e r a l q u e s t i o n s , and a f e d e r a l q u e s t i o n i s i n v o l v e d n o t n e r e l y when t h e c o n s t r u c t i o n o f a f e d e r a l s t a t u t e i n c i d e n t a l l y a r i s e s , b u t when t h e c a s e n e c e s s a r i l y t u r n s upon t h e c o n s t r u c t i o n o f t h e f e d e r a l l a w s , a s vdien t h e p l a i n t i f f w o u l d b e d e f e a t e d by one c o n s t r u c t i o n , o r s u c c e s s f u l by a n o t h e r . " 491 -5- X-4371 That i s f o u n d a t p a g e 2 3 5 , Heches* F e d e r a l P r o c e d u r e ( 2 E d . ) And i t i s s a i d f u r t h e r , a s t o p l e a d i n g s ( p . 3 6 ) : "In o r d e r f o r t h i s ground o f j u r i s d i c t i o n t o e x i s t , a c o r e g e n e r a l a l l e g a t i o n that the p l a i n t i f f ' s case r e s t s upon a c o n s t r u c - t i o n of the f e d e r a l C o n s t i t u t i o n or s t a t u t e s i s not s u f f i c i e n t . The f a c t s i n h i s p l e a d i n g s n u s t show t h i s . And i t must a l s o appear t h a t t h e p l a i n t i f f ' s own e a s e n e c e s s a r i l y depends upon t h e c o n s t r u c t i o n of t h e f e d e r a l C o n s t i t u t i o n or s t a t u t e s . " I h a v e r e a d t h o s e a u t h o r i t i e s so t h a t i t n i g h t he u n d e r stood that the court i s not o v e r l o o k i n g the p r i n c i p l e s of p l e a d i n g upon w h i c h a f e d e r a l q u e s t i o n n u s t r e s t b e f o r e t h e p l e a d i n g can be pronounced t o i n c l u d e a f e d e r a l q u e s t i o n . How, i n o r d e r t o d e t e r m i n e w h e t h e r o r n o t t h e r e i s a f e d e r a l q u e s t i o n i n e x i s t e n c e h e r o , t h e c a s e o f Farmers and Merchants Bank o f Monroe, North C a r o l i n a , e t a l . v . F e d e r a l R e s e r v e Bank o f Richmond, V i r g i n i a , p a r t s o f i t , n a y be r e a d Kith ( 2 6 2 U. S . 6 4 9 ) , o r sone effect. This, I should say, is a c a s e where the S t a t e o f Herth C a r o l i n a h a d p a s s e d a n a c t which was t h o u g h t by t h e p l a i n t i f f s t o impinge upon t h e Cons t i t u t i o n of t h e U n i t e d S t a t e s , and t h e a c t i t s e l f set forth i t s p r o v i s i o n s t o u c h i n g t h e m a t t e r s t h a t a r e h e r e now i n v o l v e d . The c o u r t h a d u n d e r c o n s i d e r a t i o n t h a t a c t , a s t o whether i t was c o n s t i t u t i o n a l , and, a f t e r s e t t i n g f o r t h t h e p r o v i s i o n s of the Federal Reserve Act, s e c t i o n 1 3 , and commenting upon t h a t , and a s s e r t i n g what i s meant by i t , t h e c o u r t g o e s on and r e f e r s t o t h e Hardwick Amendment, w h i c h d e c l a r e s ; X-4371 "That no thin," i n t h i s or any o t h e r s c c t i o n o f t h i s A c t s h a l l be c o n s t r u e d a s p r o h i b i t i n g a member or nonnenber bank from n o k i n g r e a s o n a b l e c h a r g e s , t o be d c t o r r . l n c d and r e g u l a t e d by t h e F e d e r a l R e s e r v e Board, b u t i n no c a s e to e x c e e d 10 c e n t s p e r $100 or f r a c t i o n t h e r e o f , b a s e d on t h e t o t a l of c h o c k s and d r a f t s p r e s e n t e d a t nay one t i n e , f o r c o l l e c t i o n or payment o f c h o c k s and d r a f t s and r e m i s s i o n t h e r e f o r by exchange o r o t h e r w i s e ; b u t no such c h a r g e s 43ha.ll be ma_e a g a i n s t t h e Federal reserve banks." And t h a t i s what i s i n v o l v e d h e r e v e r y l a r g e l y . After c i t i n g t h a t anond.:;ont, t h e c o u r t c i t e s t h e o p i n i o n of t h e A t t o r n e y General i n h i s a d v i c e t o t h e P r e s i d e n t , a s f o l l o w s : "The F e d e r a l r e s e r v e a c t , h o w e v e r , d o e s n o t command or compel t h o s e S t a t e banks t o f o r e g o any r i f j h t t h e y may h a v e under t h e S t a t e l a w s t o make c h a r g e s i n c o n n e c t i o n w i t h the payment of c h e c k s drawn u^on t h e n . The a c t m e r e l y o f f e r s t h e c l e a r i n g and c o l l e c t i o n f a c i l i t i e s of t h e F e d e r a l r e s e r v e banks upon s p e c i f i e d c o n d i t i o n s . I f the S t a t e banks r e f u s e t c c o n p l y w i t h t h e c o n d i t i o n s by i n s i s t i n g upon making c h a r g o s a g a i n s t t h e F e d e r a l r e s e r v e b a r k s , t h e r e s u l t w i l l s i m p l y bo, s o f a r a s t h e Federal Reserve Act i s concerned, t h a t s i n c e the Federal r e s e r v e banks can n o t pay t h e s e c h a r g e s t h e y c a n n o t c l e a r or c o l l e c t c h e c k s on banks demanding such p a y n e n t from t h e n . " Thenthe c o u r t g o e s on t o s a y , s t a t i n g the c o n d i t i o n s upon w h i c h t h i s q u e s t i o n a r o s e and t h e c a u s e f o r i t : "The F e d e r a l R e s e r v e Board andthe f e d e r a l r e s e r v e banks were t h u s a d v i s e d t h a t t h e y were p r o h i b i t e d fro:.: pay in; - an e x c h a n g e c h a r g e t o any bank. But t h e y b e l i e v e d t h a t i t was • t h e i r d u t y t o a c c e p t f o r c o l l e c t i o n any chock on any bank; and t h a t C o n g r e s s h a d imposed upon t h e n t h e d u t y o f making p a r c l e a r a n c e and c o l l e c t i o n o f c h e c k s u n i v e r s a l i n t h e U n i t e d States. So t h e y u n d e r t o o k t c b r i n g about a c q u i e s c e n c e of t h e r e m a i n i n g s t a t e banks t o t h e s y s t e m of par c l e a r a n c e . Some o f t h e n o n a s s o n t i n g s t a t e banks made s t u b b o r n r e s i s t a n c e . To overcome i t t h e r e s e r v e banks h o l d t h e m s e l v e s o u t a s p r e p a r e d t o c o l l e c t a t . p a r a l s o c h e c k s on t h e s t a t e banks which d i d n o t a s s e n t to par c l e a r a n c e . T h i s t h e y did by p u b l i s h i n g a l i s t , " etc. ( G o i n g on t o s t a t e what was done and t h e e f f o r t s t h a t wore made). 493 -7- X-4371 2Tow, t h e r e v.ts a f o u r t h c n t e n t i n a r a i n s t t h e c o n s t i t u t i o n a l i t y of t h e iTcrth C a r o l i n a A c t , and t h e c o u r t , in coL-iuntinf upon t h a t c o n t e n t i o n , h a s t h i s t o s a y : "One c n t e n t i n n i s t h a t S e c . 2 c o n f l i c t s w i t h t h e F e d e r a l R e s e r v e A c t b e c a u s e i t p r e v e n t s t h e f e d e r a l r e s e r v e banks f r r* c o l l e c t i n g c h e c k s of s u c h s t a t e banks a s do n o t a c q u i e s c e in the plan forget clearance. The argument r e s t s on t h e a s s u m p t i o n t h a t t h e F e d e r a l R e s e r v e Bank o f R i c h n o n J i s o b l i g e d t o r e c e i v e f o r c o l l e c t i o n any c h e c k u p o n any F o r t h C a r o l i n a s t a t e bank, i f s u c h c h e c k i s p a y a b l e u p o n p r e s e n t a t i o n ; and i s o b l i g e d to c o l l e c t the s ® c a t par without a l l o w i n g deduct i o n s f o r exchrjif-e o r o t h e r c h a r g e . But n e i t h e r S e c . 1 3 , n o r any o t h e r p r o v i s i o n ! of t h e Federal R e s e r v e Act, i m o s e s upon r e s e r v e banks any o b l i g a t i o n to r e c e i v e c h e c k s f o r c o l l e c t i o n . The a c t v . e r e l y c o n f e r s a u t h o r i t y t o dc s o . **** M o r e o v e r , even i f i t c o u l d be b a l d t h a t t h e r e s e r v e banks a r c o r d i n a r i l y o b l i g e d t o c o l l e c t chocks f o r a u t h o r i z e d d e p o s i t o r s , i t i s c l e a r t h a t t h e y a r e n o t r e q u i r e d t o do so where t h e drawee h a s r e f u s e d t.-. r e m i t e x c e p t u p o n a l l o w a n c e o f e x c h a n g e c h a r g e s w h i c h r e s e r v e banks a r c not p e r m i t t e d to p a y . " Then i n a n s w e r i n g t h e f i f t h c o n t e n t i o n o f t h e u n c o n s t i t u t i o n a l i t y of that a c t , the court says: "The f u r t h e r c o n t e n t i o n i s n a d e t h a t S e c . 2 c o n f l i c t s w i t h t h e F e d e r a l R e s e r v e Act b e c a u s e i t i n t e r f e r e s w i t h t h e d u t y o f t h e F e d e r a l R e s e r v e Board t o e s t a b l i s h i n t h e U n i t e d S t a t e s a u n i v e r s a l s y s t e n o f p a r c l e a r a n c e and c o l l e c t i o n o f c h e c k s . C e n g r o s s d i d n o t i n t e r e s c o n f e r upon t h e F e d e r a l R e s e r v e B o a r d o r t h e f e d e r a l Reserve banks a duty to e s t a b l i s h u n i v e r s a l p a r c l e a r a n c e nnd c o l l e c t i o n o f c h o c k s ; and t h e r e i s n o t h i n g i n t h e o r i g i n a l a c t o r i n any a n e n d n e n t f r o r . w h i c h s u c h d u t y t o c o i r p e l i t s a d o p t i o n nay be i n f e r r e d . " And t h e n t h e c o u r t d i s c u s s e s t h e n a t t e r g e n e r a l l y : "Moreover, t h e c o n t e n t ! n t h a t C o n g r e s s h a s i m p o s e d u p o n t h e Board t h e d u t y o f c s t a b l i s h i n f : u n i v e r s a l p a r c l e a r a n c e e n d c o l l e c t i o n o f c h o c k s t h r o u g h t h e f e d e r a l r e s e r v e banks i s i r r e c o n c i l a b l e w i t h t h e s p e c i f i c p r o v i s i o n o f t h e Hardwick Ancndr.'.cnt w h i c h d e c l a r e s t h a t e v e n a n e n b e r o r an a f f i l i a t e d n o n - n e n b e r n a y r^ako a U n i t e d c h a r g e ( e x c e p t t o f e d e r a l r e s e r v e b a n k s ) f o r 'payment o f c h e c k s and . . . r e m i s s i o n t h e r e f o r b y e x c h a n g e or o t h e r w i s e . 1 The r i r h t t o n a k e a c h a r g e f o r p a y n c n t o f c h e c k s , thus r e g a i n e d by cenber and p r e s e r v e d t o a f f i l i a t e d non-nenbvr b a n k s , shows t h a t i t was n o t i n t e n d e d , o r e x p e c t e d , t h a t t h e f e d e r a l r e s e r v e banks would becone the u n i v e r s a l agency f o r c l e a r ance of c h e c k s . " X-4371 494 Hot;, t h a t shows v e r y p e r t i n e n t l y raid p o i n t e d l y t h a t t h e q u e s t i o n i s h e r e , m& i t i s fcdoral question, whether or n o t t h e Jtodorel Be s e r v e 3nak nay c o n p e l p a r c l e a r a n c e "by st-- t o banks «.'ho a r e n o n - a f f i l i a t e d b a n k s . That i s t h e q u e s t i o n upon which t h i s c a s e i s f o u n d e d , and i t i n c l u d e s t h e a t t e q p t on t h e p a r t of t h e F e d e r a l R e s e r v e Bank t o do an a c t t h a t i t was u n a u t h o r i z e d t o do - t h a t Congress d i d n o t a u t h o r i z e i t t o do; and i t p e r s i s t e d i n t h a t . T h i s c a s e t h a t I have r e a d f r c n shows tha.t, and t h e c a s e I h a v e "before no shows i t , - t h a t t h e F e d e r a l B e s e r v e Bank p e r s i s t e d upon i t s a l l e g e d r i g h t , power and a u t h o r i t y t o p r o c e e d t o c o l l e c t , and to corjyel t h e s t a t e "banks, n o n - a f f i l i a t e d "banks, t o c l e a r a t p a r . I t i s an a u t h o r i t y i t d i d n o t h a v e , and t h e c o u r t h a s so h e l d . And t h i s court h a s so h e l d . Now, the c r u c i a l t e s t i n t h i s case, and the c r u c i a l question - and i t i s a f e d e r a l question - i s whether or not the Federal Reserve Bank can enforce such c o l l e c t i o n . It is a l l f o l l y f o r a person to say that that question i s not a question i n t h i s c a s e . The only question i s as to whether i t has been s u f f i c i e n t l y a l l e g e d so as to base .a complaint upon i t ; that i s , so a s to make the complaint s u f f i c i e n t i n i t s allegations. that i t i s Reserve Bank I think, taking the complaint a l l together, sufficient. I t s t a t e s , f i r s t , that the Federal i s an organization under the Act of Congress; and then i t s t a t e s , second, that that o r g a n i z a t i o n has -9- X-4371 e n t e r e d upon a c e r t a i n p o l i c y , m l that i t i s proceeding t 4 c a r r y o u t t h a t p o l i c y ; and t h a t s p e c i a l l y i n t h i s e a s e i t i s p r o c e e d i n g t o e n f o r c e c o l l e c t i o n on a p a r b a s i s , t h e r e i s your f e d e r a l q u e s t i o n . It i s involved here. So It i s n o t s t a t e d s p e c i f i c a l l y and p e r t i n e n t l y t o t h a t end, but I t h i n k t h e r e i s enough i n t h e c o m p l a i n t t o e s t a b l i s h t h a t it i s good - e s p e c i a l l y a t t h i s t i n e . I f the p o i n t had been r a i s e d on d e n u r r e r t o t h e c o n p l r i n t , a s t o whether t h i s c o n p l a i n t s t a t e d a c a u s e of a c t i o n on t h a t p o i n t , probably have s u s t a i n e d t h e d e m r r o r . the court would But t h i s c a s e h a s r o n e on, an answer h a s b e e n f i l e d , i t h a s b e e n t r i e d p a r t i a l l y , now a new t r i a l and i s c o n i n g up, and the c o m p l a i n t i s e n t i t l e d t o a liberal construction. I jan r i v i n g i t t h a t c o n s t r u c t i o n now. •T.-" I t swens t o no t h a t , under t h e c i r c u r . s t a n c e s , t h i s c a s e ought not t c f a l l s i m p l y b e c a u s e t h e j u r i s d i c t i o n o f t h e c o u r t h a s b e e n t a k e n ssray f r o n i t t o t r y c a s e s on t h e u i n p l e ground t h a t .no o f t h e p a r t i e s i s a c o r p o r a t i o n i n c o r p o r a t e d under an Act of Congress. This i s z y c : n c l u s i o n , and I w i l l o v e r r u l e t h e n o t i o n . I w i l l say to counsel f o r p l a i n t i f f t h a t , advieenent, t h e y d e s i r e t o ar.end t h i s c o m p l a i n t , t h e y n a y h a v e a u t h o r i t y t o do s o . if in their
@FedFRASER