263
OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Uonorable Jn0. Q. MoMam
COlUlEl~SiOtl~
nopartm0nt or lsanang
Austin, Taaa
Dsar)tr.laMamar Oplnion~no. O-
oclations In
Tour requel3tior fron thle depart-
ment IS 88 POllorSS
utlon of our Stat4 eXprotra4
8bliShBlentOf branch ba.nkl~&,
38 Ocnoral ~Prmisions of the
upp~eeiateyour opinion as to
NatLonal Congress acted within
its rights when It npprorul a law pemdtting
branch banklag %n 6tatoo where such faoili-
ties are d&initely prohlbited.g
Ihe pertinent portions of 8 1603 are as follows~
q-hid section 6168 or ati8ed statute* of lam,
a9 asetied (U.S.O.,-titlelea se0. 36; I).SOC.,
%upp. t, title l2, WM. 313),be %rthcr ar.eniled
br addlq the fOllO+inb:JuPJL~;~~@I
at the end
th9lTdS
264
Roaorable Jnoe Q. H- - p8ge 0
“aotrithatBndlng BlayproThlo2l Of lu
to the owxtc~, 8 ntationalb8nk aq, opoa
outhoris8tion of t&a Oouiptroller of the cue
reno~8ndsubjeut tosach condition8 and
lindktionr as ho sball pmwri~a,praide
b8nklng raoiutiea 8t lhdted Bt8tea raiut8ry
reaerr8tfons 8nd n8ry prda asbl&&ions, but
no such wthori~otioa shall beoome eWeotlte
or oontirae in afteat sroept ritb the ooruent
of the baret8q of P8r or the Se0rOty of
the IIavy, ~hiohwerh8r jutisdiotiam.*m
The gemral principles of ooafliot of laum, as ap-
plied to banking izmtitutions,are +a11 rrttledr Thw 8re
at&&d in Davis 1. Blnlrdra 8011 Bank (U&3.) 40 LOT RI. 700,
88 followrs
w%tionalbmm In-8lMtrumellwtlem
of th8 ted-81 govmnt, oreatedfor 8
public purpoaeaad M 8ueh neoeaoeril~ sub-
jeot to the p8r8mount wthority of the
United states. It followa that (~11 stteqt
by a date to define their dtrtieeor oon-
trolthe oonituct of their8rrrrir0 %8abro-
lute4 told rherwer suoh 8tfanpted OXC-
climeof Buthorit~ expremrl~ oonf1iote rith
the law o? the Unlted State@ and alther
f%Wtr8tOO the p~FpOe18 Oi the natiOn
le~rrlrtion or inpaIr the effiolenq of
thwle8genolea of therederal gwerMeBt
to dlsch8rge the duties for the perfosw-
axwe of which thq were OreOted. Them0
prlwip1eiI pT0axi0Mti0 and rrresanotion-
ed by the repeated ad)udio8tion~ ot the 1
oourt .'
Thlr,pronouneemnt h80 reotdted the 8pprm81 a? the
Supreme Court in numerour 08ms, come o? -blah 8re am follorsr
IbiatOnTe Ian (U.S.) IT to= plb.46S#
first Platlonal Bank d ?rust COapmy t.
Clhl,94 Ped. (g) 1013,osrtiorui
denled (U.Ss) ea L8T m. 1648.
265
Uoaorable
Jno. Qg l&oMmis- p-e 3
The rule h88 been 8omwh8t diffwently 8tated w
Dlatrlot J-0 Poaohoo:n Ur,isr.r.~Doharty,
3.8V'ed.Supp.
793, 08 rollow~(~
'zho abwo paer~ gi?W to Congrew *
the Co~tlktioa to proteat the aarrenoy
must neeemaaH1 be Qtsaded to the po8n
to proteot the FI8akhg ~&a and to orbet
flr o a l a g e no iw ..
l l * .
TheaBAt of rt8te8uthorit~withr~eOt to
national o8oooi8tloa8ir 8ell Uefiaod In the follovlng
1Pngoyet~
"IBtim b- 8?ObI'Ollght inte IS%&-
ewe under tedeml legislation,ue Wtnx-
mwt8litiw of thrDJder8.lgOnrnwat,8Du
are neowrtily mllljwt to the pBr8Munt
ruthoritf of the United 8t8tw. lwerthe-
leaa, mtioaal baake are mbjwt to the
lue 0r 8 at8toin reepeot0f theiraffaira
unlwr euoh lam dth the purposes
interiors
or thatr orwtion, tend to bp8tr or don-
troythslr eHio~,sn~ laf0das.l yewisp,
or oontliot tith the paramount law of the
united 8tBfw,* - al-et X8tl0a81 Bank to
ni#ts0url(II..%.) (18LB= m. 468.
riot lwOn8l R8nkt. U8wur& itmelt ln~olred
a question af branah banking, for which rwt3on we will no-
tioe it more oloasly.
The of Isiwouti on the relotton of hm. At-
&rte
toraw Uonerol iahittsted 8 p00Oeding in quo w.rr8nto to
deterndne the wth~rift Ot the rwpOSXlwt, PIrat Botlonal
BBnk, t0 OODbPOt 8 brrnoh - 8t UtOtbW th873 it@ l'Ogta-
lar plwe of btuin~r Ln the Citr ot St l LO& ~.
The Sbte mpreme OOurt, in which the sotion 88a
brought ao 88 origlml proeeed%ng, ordered the ourter ao
prayed for by the st8t0, maying,
‘The iWorwtioa tiled herein w the At-
tornq cenetal deem not lnrolre the ooam&m8-
ion of aa 8ot in.oontliotrith the lmr of
the united Utrtem, nor doe8 it Card to imp8l~
266
aoaor8bla arma a. noAdam - page 4
tho ePriolw~ of Buy agetoy or the lutiOn81
goverzment~ It 090 not, therefore, be raid
to a0 in oonfliot 8ith tho rule above aanounoed,
(mpren8oy of hot of Qongrera wer 8t8te lu)
on&ihen00 doem not tiol8te it.. - State ex rel
Attornq UwemX I. Fir8t U8flon8l Bank oP St.
Louis (no,) 249 6. V. 619, 30 A. L. B. 938,
The decision OS the State Supreme Court was aP-
Pirned by the Unltod Statem suprome Court, saying8
'Doee it (the OtBtO ItBtUtO) OOniliot
with the laws oP the United Stateat In our
opinion, It doe8 not. The extent o? the
powera o? national banka is to be meamured
by the term of the federal statutes rtilat-
il.&to euch 8sllJooi8tionB,
nnd thq oaa right.
f'ullfexeroiea only slml 8IIare expressly
gmnted, or such lncitlwtal pmor8 M ape
neoesmq to awry on the buaineee for
Uhich thOy Spt)0st8bliI3hed.'
The court ?urthor holds that the eat8blisbmnt azxl
mlntonanoe of 8 braa& or hranohes would not be the oxer-
cise of 8 neoese8rilJincidental power to OperBting the batik,
and?urther etoteds
Wlearly the state et8tUte, by prohibit-
ing branoheti,doe6 not Pruatrate the purpose
for uhioh the Inat&ua8 crwtod, or inter?ere
rith the diecharge o? its dutiea to the 6w-
unment a or Up8lr its ePPioien0~8~ a Peder-
a *g=w* Zhia ~onolwion vould soem to be
aeli-aident ; but, it Mrrtuh POr It bb need-
ed, it mPPlolent1~ lies in the faot thrt
aationalbanking 8esooi8tion11 hare gone on
for more than half 8 Oentury without branches,
and upon the theory of an abeen~e ai author-
ity to establish them. I? the non-existence
or suchbran~hes or the absmoe o? pomr to
ore&O them, ham opmated or ia Oaloulated to
opaate to the detriment of the GOtMnt, or
QI such manner as to intertore with the ePf%-
OimOy Or !tUah8WOCiBtiOM 8S ?edw81 BgSn-
oios, or to Prumtrate their purporea,it is
inoonoeivable that the faot would not long
minoo bwe boon dlaomemd and steps t8kea by
congrow to renmd~ the oudaslon.~
267
superv~p to control your inquiry, however,
ir the tit ot the Congress herabn being consIdered,
lpeoifltill~ WlthOF'id~ thObr8Mh b8Dk8 iV3DtiODed
therein, ad which Act by all the tokena Is the eapmme
law of the load, overriding any rud all law8 of the
etcrte-- whethew Coprtltutlonalor utatutoq -- in eon-
ilict therewIth.
IOU are therefore rea eotfnllj advieed that
upon the authorities and ma80 asng as wall the Aot in
within th6 pomr8 of the Conger8 in the exeroiae of
their exclueire jurladiationvlth r8speQf to the author-
king mmh bra~eh bank8.
./
, ,’
&&
Ode eer
dasistant
OS-kil
,o
APPROY Eii
OPlNlON
coWMITrLK
4%9