the federal courts had jurisdiction over national banks, irrespective of the subject-matter 222 or the citizenship of the parties,223 and the state courts had concurrent jurisdiction.224 Later Provisions as to Citizenship

By act of July 12, 1882, it was provided that jurisdiction for suits brought by or against national banks, except suits between them and the United States, or its officers and agents, should be the same as the jurisdiction for suits by or against banks not organized under any law of the United States doing business in the same place. 225 This act put national banks on the same footing as banks of the state where they were located for the purposes of jurisdiction of the federal courts, so that a national bank could not sue in a federal court merely by reason of the source of its incorporation.226 The foregoing provision was superseded by enactments in 1887 and 1888, by which it was provided that all national banking associations should, for the purposes of all actions against them, real, personal, or mixed, and all suits in equity, be deemed citizens of the states in which they were respectively located, and that in such cases the circuit and district courts should

222 Foss v. First Nat. Bank (C. C.) 3 Fed. 185. See "Banks and Banking," Dec. Dig. (Key No.) § 275; Cent. Dig. §§ 1056–1066.

223 Wilson County v. Third Nat. Bank, 103 U. S. 770, 26 L. Ed. 488. See "Banks and Banking," Dec. Dig. (Key No.) § 275; Cent. Dig. §§ 1056-1066; "Courts," Dec. Dig. (Key No.) §§ 294, 489; Cent. Dig. § 836.

224 Claflin v. Houseman, 93 U. S. 130, 23 L. Ed. 833; First Nat. Bank v. Morgan, 132 U. S. 141, 10 Sup. Ct. 37, 33 L. Ed. 282; Brinckerhoff v. Bostwick, 88 N. Y. 52 See "Banks and Banking," Dec. Dig. (Key No.) § 275; Cent. Dig. §§ 1056-1066; "Courts," Dec. Dig. (Key No.) § 489; Cent. Dig. § 1336.

225 Act July 13, 1882, c. 290, § 4, 22 Stat. 163. See Whittemore v. Amoskeag Nat. Bank, 134 U. S. 527, 10 Sup. Ct. 592, 33 L. Ed. 1002. See "Banks and Banking," Dec. Dig. (Key No.) § 275; Cent. Dig. §§ 1056-1066.

226 Leather Manufacturers' Nat. Bank v. Cooper, 120 U. S. 778, 7 Sup. Ct. 777, 30 L. Ed. 816. See “Banks and Banking,” Dec. Dig. (Key No.) § 775; Cent. Dig. §§ 1056–1066.

not have jurisdiction other than such as they would have in cases between individual citizens of the same state-these provisions not to affect the jurisdiction of the United States courts in cases commenced by the United States or by direction of any officer thereof, or cases for winding up the affairs

of any such bank.227 "The necessary effect of this legislation was to make national banks, for the purpose of suing and being sued in the circuit courts of the United States, citizens of the states in which they were respectively located, and to withdraw from them the right to invoke the jurisdiction of the circuit courts * simply upon the ground that they were created by, and exercised their powers under, acts of Congress. * * * Of course * there remained to

a national bank, independently of its federal origin, and as a citizen of the state in which it was located, the right to invoke the federal jurisdiction of the circuit courts in any suit involving the required amount, and which by reason of its subjectmatter, and not by reason simply of the federal origin of the bank, was a suit arising under the constitution and laws of the United States." 228

227 Act March 3, 1887, c. 373, § 4, 24 Stat. 554, and Act Aug. 13, 1888, c. 866, § 4, 25 Stat. 436 (U. S. Comp. St. 1901, p. 514).

228 Continental Nat. Bank v. Buford, 191 U. S. 119, 24 Sup. Ct. 54, 48 L. Ed. 119. See, also, Petri v. Commercial Nat. Bank, 142 U. S. 644, 12 Sup. Ct. 325, 35 L. Ed. 1144; Ex parte Jones, 164 U. S. 691, 17 Sup. Ct. 222, 41 L. Ed. 601; Guthrie v. Harkness, 199 U. S. 148, 26 Sup. Ct. 4, 50 L. Ed. 130; Wyman v. Wallace, 201 U. S. 230, 26 Sup. Ct. 495, 50 L. Ed. 738; Walker v. Windsor Nat. Bank, 56 Fed. 76, 5 C. C. A. 421; Andrews v. Thum, 64 Fed. 149, 12 C. C. A. 77. Review of decision of state courts involving federal question, see Miller v. National Bank of Lancaster, 106 U. S. 542, 1 Sup. Ct. 536, 27 L. Ed. 289; Union Nat. Bank v. Louisville, N. A. & C. R. Co., 163 U. S. 325, 16 Sup. Ct. 1039, 41 L. Ed. 177; McCormick v. Market Nat. Bank, 165 U. S. 538, 17 Sup. Ct. 433, 41 L. Ed. 817; Leyson v. Davis, 170 U. S. 36, 18 Sup. Ct. 500, 42 L. Ed. 939; Capital Nat. Bank v. First Nat. Bank, 172 U. S. 425, 19 Sup. Ct. 202, 43 L. Ed. 502; Seeberger v. McCormick, 175 U. S. 274, 20 Sup. Ct. 128, 44 L. Ed. 161; Talbot v. Sioux Nat. Bank, 185 U. S. 182, 22 Sup.

Actions by and Against Receivers

A receiver is an officer of the government, and an action against him in his representative capacity is one arising under the laws of the United States, and jurisdiction of the circuit court therein was not dependent on diversity of citizenship of the parties.229 And so of an action against an "agent," substituted for the receiver in voluntary liquidation; the action being one to wind up the affairs of the bank.230 Similarly, an action may be maintained by a receiver

231

or agent. 282

Ct. 621, 46 L. Ed. 862; Rankin v. Barton, 199 U. S. 228, 26 Sup. Ct. 29, 50 L. Ed. 163. See "Banks and Banking," Dec. Dig. (Key No.) § 275; Cent. Dig. §§ 1056-1066; "Courts," Dec. Dig. (Key No.) § 294; Cent. Dig. § 836.

229 Auten v. United States Nat. Bank, 174 U. S. 125, 19 Sup. Ct. 628, 43 L. Ed. 920; McDonald v. State of Nebraska, 101 Fed. 171, 41 C. C. A. 278.

A case arising under the laws of the United States was presented by a bill filed by the holder of a nonnegotiable note, given by a bank which afterwards went into voluntary liquidation, to enforce the stockholders' liability. Wyman v. Wallace, 201 U. S. 230, 26 Sup. Ct. 495, 50 L. Ed. 738. See "Banks and Banking," Dec. Dig. (Key No.) §§ 275, 287; Cent. Dig. §§ 1099-1105; "Courts," Dec. Dig. (Key No.) § 294; Cent. Dig. § 836.

230 Weeks v. International Trust Co., 125 Fed. 370, 60 C. C. A. 236; International Trust Co. v. Weeks, 203 U. S. 364, 27 Sup. Ct. 69, 51 L. Ed. 224. See "Banks and Banking," Dec. Dig. (Key No.) § 275; Cent. Dig. §§ 1056-1066; "Courts," Dec. Dig. (Key No.) § 294; Cent. Dig. § 836.

231 Short v. Hepburn, 75 Fed. 113, 21 C. C. A. 252; Lake Nat. Bank v. Wolfeborough Sav. Bank, 78 Fed. 517, 24 C. C. A. 195; Myers v. Hettinger, 94 Fed. 370, 37 C. C. A. 369; McCartney v. Earle, 115 Fed. 462, 53 C. C. A. 392; Murray v. Chambers (C. C.) 151 Fed. 142.

Such jurisdiction is lost by a sale and transfer of the receiver's interest in the subject-matter. Weaver v. Kelly, 92 Fed. 417, 34 C. C. A. 423. See "Banks and Banking," Dec. Dig. (Key No.) § 275; Cent. Dig. §§ 1056-1066, 1099-1105.

282 McConville v. Gilmour (C. C.) 36 Fed. 277, 1 L. R. A. 498. See "Banks and Banking," Dec. Dig. (Key No.) § 275; Cent. Dig. §§ 1056-1066, 1099–1105.

Removal

The same considerations govern the right of removal from a state to a federal court. The bank cannot remove on the mere ground that it is a national bank, but must establish the right upon some other ground.233 An action against a receiver 234 or "agent" is removable, but not an action in which the receiver is not a necessary party, as where he is admitted as a party in an action which was pending against the bank at the time of his appointment. Changes by Act of 1911

235

By an act to codify, revise, and amend the laws relating to the judiciary, which took effect January 1, 1912, important changes affecting the jurisdiction of the federal courts have been made. The act repeals the former provisions conferring jurisdiction upon the district courts and upon the circuit. courts, 23 as well as the provisions of the acts of 1887 and 1888 above referred to.237 It provides, among other things, that "the district courts shall have original jurisdiction as follows: * * Of all cases commenced by the United States, or by direction of any officer thereof, against any national banking association, and cases for winding up the af

233 Leather Manufacturers' Nat. Bank v. Cooper, 120 U. S. 778, 7 Sup. Ct. 777, 30 L. Ed. 816; Wichita Nat. Bank v. Smith, 72 Fed. 568, 19 C. C. A. 42; Speckert v. German Nat. Bank, 98 Fed. 151, 38 C. C. A. 682. See, also, Petri v. Commercial Nat. Bank, 142 U. S. 644, 12 Sup. Ct. 325, 35 L. Ed. 1144. Dec. Dig. (Key No.) §§ 19, 20, 30, 72, 82;

See "Removal of Causes," Cent. Dig. §§ 37-47. 234 Grant v. Spokane Nat. Bank (C. C.) 47 Fed. 673; Hot Springs Independent School Dist. No. 10 of Fall River County v. First Nat. Bank (C. C.) 61 Fed. 417; Guarantee Co. of North Dakota v. Hanway, 104 Fed. 369, 44 C. C. A. 312. See "Banks and Banking," Dec. Dig. (Key No.) §§ 19, 20, 32; Cent. Dig. §§ 37-47, 85.

235 Speckert v. German Nat. Bank, 98 Fed. 151, 38 C. C. A. 682. See "Banks and Banking," Dec. Dig. (Key No.) §§ 19, 20, 32; Cent. Dig. 88 37-47, 75.

236 Rev. St. U. S. §§ 563, 629 (U. S. Comp. St. 1901, pp. 455, 503). For repeal, see Act March 3, 1911, c. 231, § 297, 36 Stat. 1168.

287 Ante, p. 430.

TIFF.BKS.& B.-28

fairs of any such bank, and of all suits brought by any banking association established in the district for which the court is held, under the provisions of the title 'National Banks,' Revised Statutes, to enjoin the comptroller of the currency, or any receiver acting under his direction, as provided by said title. And all such associations established under the laws of the United States shall, for the purposes of all other actions by or against them, real, personal, or mixed, and all suits in equity, be deemed citizens of the states in which they are respectively located.” 238

It seems that the effect of this legislation, except for the abolition of the circuit courts and the transfer of all original federal jurisdiction to the district courts, is to leave unchanged the law in respect to the jurisdiction of the federal courts and the state courts, respectively, in national bank cases.

TAXATION BY STATES

113. The shares of stock in a national bank are subject to taxation by the state in which the bank is located, and the legislature may direct and determine the manner and place of taxing the shares, subject to the restrictions: (1) That the taxation shall not be at a greater rate than is assessed upon other moneyed capital in the hands of individual citizens of the states; and (2) that the shares owned by nonresidents shall be taxed in the city or town where the bank is located. The real property of the bank is subject to state, county, and municipal taxes, to the same extent, according to its value, as other real property.

In General

By the act of June 3, 1864, in lieu of all existing taxes, national banks were required to pay to the treasurer of the

238 Act March 3, 1911, c. 231, § 24 (16), 36 Stat. 1091.