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FEDERAL RESERVE BOARD WASHINGTON X-37U3 ADDRESS OFFICIAL CORRESPONDENCE T O <JW16 1 J I 1 9 2 3 T H E FEDERAL RESERVE B O A R D SUBJECT: Federal Reserve Banks Held Not Suable in D i s t r i c t o t h e r tnan t h a t in which head o f f i c e i s located. Dear S i r : For your i n f o r m a t i o n as Counsel t o t h e F e d e r a l Reserve Bank of I am e n c l o s i n g h e r e w i t h a copy of an opinion rendered r e c e n t l y by t h e United S t a t e s D i s t r i c t Court f o r the E a s t e r n D i s t r i c t of Washington, i n t h e case of Mrs. George T. Bacon v . Federal Reserve Bank of San F r a n c i s c o , e t a l . , in which i t was h e l d t h a t t h e D i s t r i c t Court f o r t h e E a s t e r n D i s t r i c t of Washington had no j u r i s d i c t i o n of a s u i t a g a i n s t the F e d e r a l Reserve BanJx of San F r a n c i s c o ; because t h a t bank i s n o t an " i n h a b i t a n t " of the S t a t e of Washington and S e c t i o n $1 of the J u d i c i a l Code p r o v i d e s t h a t "no c i v i l s u i t s h a l l be brought in any d i s t r i c t court a g a i n s t any person * * * i n any o t h e r d i s t r i c t than t h a t whereof he i s an i n h a b i t a n t , " u n l e s s t h e j u r i s d i c t i o n i s founded only on t h e f a c t t h a t t h e a c t i o n i s between c i t i z e n s of d i f f e r e n t s t a t e s . In view of t h e f a c t t h a t the Supreme Court of the United S t a t e s has r u l e d t h a t every s u i t a g a i n s t a F e d e r a l Res e r v e Bank i s a s u i t involving a F e d e r a l q u e s t i o n (American Bank and Trust Company v. Federal Reserve Bank of A t l a n t a , 256 U. S. 350)ยป i t would seem t h a t under t h i s d e c i s i o n Federal Reserve Banks cannot be sued in any d i s t r i c t c o u r t except t h a t of t h e d i s t r i c t i n which i t s head o f f i c e i s l o c a t e d . Of c o u r s e t h i s i s an extremely important d e c i s i o n from t h e s t a n d p o i n t of t h e F e d e r a l Reserve Banks. This opinion was sent t o me by Mr* Agnevv, Counsel f o r t h e F e d e r a l Reserve Bank of San F r a n c i s c o . Very t r u l y yours, " a l t e r Wyatt, General Counsel (Enclosure) To Counsel f o r a l l F.R.Banks (except San F r a n c i s c o and Cleveland)