Full text of Mimeograph Letters and Statements of the Board : Copy of Letter From E. B. Stroud, Jr., Office Counsel, Federal Reserve Bank of Dallas, re Opinion by Judge Grubb in Case of Bank vs. Webster, Number X-3739, Volume 18, Page 375

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( COPY )
FEDERAL RESERVE BANK
OF DALLAS

May 31, 1923
F e d e r a l Reserve Board.
Washington, D. 0.
Gentlemen:

A t t e n t i o n Mr. Walter Wyatt.

I wish t o c a l l your a t t e n t i o n to the ca.se of
F e d e r a l Reserve Bank of D a l l a s vs Webster, r e p o r t e d i n
t h e May 24 Advance Sheet of the F e d e r a l R e p o r t e r , same
"being 287 F e d . , 579This i s an o p i n i o n by Judge G-rubb s u s t a i n i n g
t h e j u r i s d i c t i o n of t h e F e d e r a l c o u r t s i n s u i t s b r o u g h t
by F e d e r a l r e s e r v e banks upon promissory n o t e s or o t h e r
choses i n a c t i o n which t h e s a i d F e d e r a l r e s e r v e banks
h o l d by a s s i g n m e n t .
For your i n f o r m a t i o n I might say t h a t we had
s e v e r a l c a s e s pending a t the time t h i s m a t t e r was a r g u e d .
One case— the F e d e r a l Reserve Bank of D a l l a s vs C i t y of
Cleburne— was a s u i t on c e r t a i n w a r r a n t s which had been
a s s i g n e d to t h i s Bank, a.nd t h e o t h e r c a s e s , i n c l u d i n g t h e
F e d e r a l Reserve Bank of D a l l a s vs Webster c a s e , were s u i t s
on promissory n o t e s . The same a t t o r n e y s r e p r e s e n t e d the
v a r i o u s Defendants i n a l l of t h e s e s u i t s and c o n s e q u e n t l y
only one argument was made on the j u r i s d i c t i o n a l q u e s t i o n .
I n t h e o p i n i o n r e f e r r e d t o the s t y l e of the ca.se i s given
a s F e d e r a l Reserve Bank of D a l l a s vs Webster a l t h o u g h t h e
body of t h e o p i n i o n r e f e r s t o t h e c a s e of F e d e r a l Reserve
Bank of D a l l a s vs C i t y of Cleburne. There a r e c e r t a i n
o t h e r t y p o g r a p h i c a l e r r o r s in the o p i n i o n .
This case might be of value t o some of t h e
o t h e r F e d e r a l r e s e r v e banks should t h i s q u e s t i o n a r i s e
in their l i t i g a t i o n ,
Very t r u l y y o u r s ,
( s i g n e d ) E. B. S t r o u d , J r .
EBS-cc




O f f i c e Counsel