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(COPY) FEDERAL RESERVE BAM: x-4o?6-a OF BAIL AS June 2, 192U Federal Reserve Board Washington, B.C. Attention Mr. Walter Wyatt- In re: City of Douglas Arizonav. Federal Reserve Bank Bear Mr. Wyatt: The above case wa.s t r i e d before the United States B i s t r i c t Judge on May 7th. Prior to the submission of.testimony i n the c a s e , we presented exception to the P l a i n t i f f ' s p e t i t i o n on the ground that there was no privy of contra.ct between P l a i n t i f f and Defendant*. The Court overruled ihis exception. After the testimony had been submitted, the Judge announced tiiat, in h i s opinion foe f a c t s of the case brought us e n t i r e l y within the rnle as laid down by the Supreme Court of the United States in the Malloy case, although he expressed doubt as to the right of the P l a i n t i f f to maintain foe action, and requested that both sides submit written b r i e f s on t h i s question. These b r i e f s were submitted, and cn the 29 th of May, the Court rendered jud gment in favor of foe Federal Reserve Bank, upholding our p o s i t i o n that no privy of contract e x i s t e d . I have undertaken to have Judge Smith write an opinion, i n order that i t might be used as authority i n other cases. However, the Judge i s ordered to New York to hold Court for several weeks, beginning about the 15th of June, and on account of the f a c t that h i s docket i s rather crowded u n t i l he l e a v e s , we have not as yet been able to get h i s promise to write the opinion. I am in hopes however, that he w i l l do so a f t e r he returns from New Ycrk.as he i s a very able Judge, and h i s opinion would be a valuable precedent for us. For your information, I am enclosing herewith, the brief vdiicih I have -filed cn the question involved. I did net t r y to make an exhaustive b r i e f , f o r the reasontiiat foe question was very thoroughly argied before the Court upon cur exception. Very truly yours, (signed) E. B. Stroud, Jr. O f f i c e Counsel
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