First Carolinas Joint Stock Land Bank v. Page

• Decision Date: 29 June 1932
• Citation: 2 F. Supp. 529
• Court: U.S. District Court — Middle District of North Carolina
• Parties: FIRST CAROLINAS JOINT STOCK LAND BANK OF COLUMBIA, S. C., v. PAGE et al.

2 F. Supp. 529

FIRST CAROLINAS JOINT STOCK LAND BANK OF COLUMBIA, S. C., v. PAGE et al.

District Court, M. D. North Carolina.

June 29, 1932.

Melton & Belser, of Columbia, S. C., and Cansler & Cansler, of Charlotte, N. C., for plaintiff.

Herbert J. Haas, of Atlanta, Ga., John M. Robinson, of Charlotte, N. C., and John Curran, of Atlanta, Ga., for defendant Salvation Army.

HAYES, District Judge.

The plaintiff, First Carolinas Joint Stock Land Bank, a corporation, created by an act of Congress, brought an action in the state court against Salvation Army, a corporation, created under the laws of Georgia. The cause was removed to this court on the ground of diverse citizenship. The plaintiff moved to remand on the ground that it was and is a corporation created by Congress and is a citizen of the United States but not a citizen of any one state.

The petition concedes that a corporation created by Congress without designating its location is a citizen of the United States but not of any particular state. Bankers' Trust Company v. Texas & P. R. R. Co., 241 U. S. 295, 36 S. Ct. 569, 60 L. Ed. 1010. It is insisted here, however, that plaintiff's charter fixes its office at Columbia, S. C., and limits its territory to the states of South Carolina and North Carolina, thus localizing and making it a citizen of South Carolina. Apparently the precise point has not been determined by the Supreme Court or a Circuit Court. The petitioner insists that the charter of plaintiff is analogous to charters of national banks. Prior to 1882 there was no statute making such banks citizens of the states where located. In 1882 (22 Stat. 162) jurisdiction of national banks was made the same as other banks, and in 1887 (24 Stat. 552) they were made citizens of the state where located. In 1923, intermediate credit banks were made citizens of the state where located. 12 USCA § 1023. But there is no such provision as to federal land banks or joint-stock land banks. The absence of such legislation in respect to the latter is significant. We cannot assume that Congress intended to make these banks citizens of states by implication, when in similar legislation it had expressly made such provision. Federal Intermediate Credit Bank v. Mitchell, 277 U. S. 213, 217, 48 S. Ct. 449, 72 L. Ed. 854.

If, then, a joint-stock land bank is to be deemed a citizen of the state where its principal place of business is located, it must be done by judicial determination. No court has so held. In American Bank & Trust Co. v. Federal Reserve Bank, 256 U. S. 350, 357, 41 S. Ct. 499, 500, 65 L. Ed. 983, wherein the charter created the Federal Land Bank of Atlanta, in discussing whether Judicial Code, § 24 (16), 28 USCA § 41(16), making national banking associations citizens of the state in which located, Mr. Justice Holmes says: "But we agree...