Smith v. Kansas City Title & Trust Co. case brief summary
255 U.S. 180
SYNOPSIS: Appellant shareholder sought review of the judgment of the District Court of the United States for the Western District of Missouri holding in favor of appellee trust company in appellant's action to enjoin appellee from investing appellee's funds in farm loans issued under the authority of the Federal Farm Loan Act of July 17, 1916, ch. 245, 39 Stat. 360, as amended January 18, 1918, ch. 9, 40 Stat. 431.
FACTS:
-Appellant shareholder sought to enjoin appellee trust company from investing appellee's funds in farm loan bonds issued by federal land banks or joint stock land banks under the authority of the Federal Farm Loan Act of July 17, 1916, ch. 245, 39 Stat. 360, as amended January 18, 1918, ch. 9, 40 Stat. 431 (the Acts), on the ground that the Acts were unconstitutional exercises of Congressional authority.
- Appellant asserted that although appellee was authorized to buy, invest in, and sell government, state, and municipal bonds, appellee could not do the same in bonds, stocks, or securities not authorized to be issued by a valid law, or which were not investment securities.
-The district court held in appellee's favor.
-Appellant sought the court's review.
HOLDING:
-Affirming, the Court held that the creation of the banks and the grant of authority to them to act for the government as depositories of public moneys and purchasers of government bonds brought the banks within the creative power of Congress to facilitate the making of loans upon farm security at low rates of interest.
-Further, Congress's authority extended to make the securities tax exempt.
CONCLUSION: The judgment in favor of appellee trust company was affirmed.
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255 U.S. 180
SYNOPSIS: Appellant shareholder sought review of the judgment of the District Court of the United States for the Western District of Missouri holding in favor of appellee trust company in appellant's action to enjoin appellee from investing appellee's funds in farm loans issued under the authority of the Federal Farm Loan Act of July 17, 1916, ch. 245, 39 Stat. 360, as amended January 18, 1918, ch. 9, 40 Stat. 431.
FACTS:
-Appellant shareholder sought to enjoin appellee trust company from investing appellee's funds in farm loan bonds issued by federal land banks or joint stock land banks under the authority of the Federal Farm Loan Act of July 17, 1916, ch. 245, 39 Stat. 360, as amended January 18, 1918, ch. 9, 40 Stat. 431 (the Acts), on the ground that the Acts were unconstitutional exercises of Congressional authority.
- Appellant asserted that although appellee was authorized to buy, invest in, and sell government, state, and municipal bonds, appellee could not do the same in bonds, stocks, or securities not authorized to be issued by a valid law, or which were not investment securities.
-The district court held in appellee's favor.
-Appellant sought the court's review.
HOLDING:
-Affirming, the Court held that the creation of the banks and the grant of authority to them to act for the government as depositories of public moneys and purchasers of government bonds brought the banks within the creative power of Congress to facilitate the making of loans upon farm security at low rates of interest.
-Further, Congress's authority extended to make the securities tax exempt.
CONCLUSION: The judgment in favor of appellee trust company was affirmed.
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Interested in learning how to get the top grades in your law school classes? Want to learn how to study smarter than your competition? Interested in transferring to a high ranked school?
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