Document: 396 U.S. 122 90 S.Ct. 337 24 L.Ed.2d 312 The FIRST NATIONAL BANK IN PLANT CITY, FLORIDA, Petitioner,v.Fred O. DICKINSON, Jr., et al. William B. CAMP, Comptroller of the Currency, Petitioner, v. Fred Nos. 19 and 34. Argued Oct. 16, 1969. Decided Dec. 9, Rehearing Denied Jan. 19, 1970. See 1047, 677. [Syllabus from pages 122-123 intentionally omitted] James van R. Springer, Washington, D.C., Robert S. Edwards, Plant City, Fla., for petitioners. Reece Smith, Tampa, V. Carroll Webb, Tallahassee, respondents. F. Bell, National Association Supervisors State Banks, as amicus curiae, by special leave Court. Mr. Chief Justice BURGER delivered opinion 1 In this case we are called upon to construe § 7 McFadden Act 1927, 44 Stat. 1228, amended, 12 U.S.C. 36, it relates definition a branch bank purpose determining scope banking available national in that prohibits branches state banks. 2 36(f) provides pertinent part: 3 '(f) term 'branch' used section shall be held include any bank, office, agency, additional or place business * at which deposits received, checks paid, money lent.' 4 Florida all chartered banks; statute may 'have only one doing business,' is carried on 'and not elsewhere.'1 issue must resolved what constitutes 'additional office'; there threshold question extent governed federal law. 5 First Bank Florida, association organized operated pursuant Act, 21 seq.; sought received United States Currency permission operate two services convenience customers; was an armored car messenger service other off-premises receptacle receipt packages containing cash deposit. Comptroller's letter authorizing relied paragraph 7490 Manual Banks,2 relatively recent ruling specifically authorizes such service. A second construction authorized 'as incident to' bank's ordinary business. Both letters contained explicit instructions designed insure so would become liabilities until actually hands teller office regular 'banking house'; cashed customers deemed paid when handed messenger, customer teller. 6 Relying these letters, offered secured monies intended deposits. advertised 'Full Service Banking your doorstep ' 'mobile drive-in where served *.' more detailed examination shows having account with could, signing 'Comprehensive Dual Control Contract,'3 arrange have call their pick up deposit, bring them exchange contract provided each situation agent customer. Additionally, proffered were accompanied transmittal slip itemized funds being deposited same manner made bank. 'Contract' transaction customer, 'the said currency, coin checks, deposit into tellers house.'4 Sums transmission charge indicating customer's had been charged amount order. owned controlled bank; driver-guard employees. cost operations assumed complete responsibility monies, during transit means insurance policy bought protect six days per week City surrounding trade area Hillsborough Polk Counties. plate glass window, sliding drawer, counter side might served. truck bore name two-way radiophone communication All movements routing directed handled about $1,000,000 through car. 8 stationary located shopping center mile National's house space leased facility consisted night bags, together writing table supplied envelopes slips identical those recited transported accepted accordance printed slip. sign who collected acted premises, Customers maintaining signed Comprehensive Contract issued key open depository drop off pouches receptacle. serviced daily. teller, making pickups pouches, promptly identified items placed immediately recorded depositor's number. verified written record identifying obtained depository. 9 On September 28, 1966, respondent herein, addressed advising proposed then under provision violate prohibition law against banking. requested cease desist operations. 10 sued District Court Northern seeking declaratory injunctive relief respondent. intervened plaintiff National; several banks support Comptroller. granted judgment petitioners, 274 Supp. 449 (D.C.N.D.Fla.1967). Appeals reversed, 400 F.2d 548 (C.A.5th Cir. 1968). We affirm Appeals. Federal Statute Policy 11 conditions establish embodied codified 36. One condition established when, where, how authorize branch, 36(c).5 Logan, Utah Walker & Trust Co., 385 252, 87 492, 17 343 (1966). noted permits no providing business'; transacted elsewhere.'6 parties agree generally if host permit its own branch; insists unequivocally forbids kind. Thus lines clearly drawn; presented whether activities 13 At outset note that, while Congress has absolute authority over banks, incorporated reference limitations places deliberately settled foster 'competitive equality.' Bank, U.S., 261, S.Ct., 497, 343. utilized provide certain guidelines implement legislative policy. 14 need review history prior legislation problem; task performed Clark supra, unanimous response competitive tensions inherent dual structure coexist area. That reflects congressional concern neither system advantages use House Report 1926 unrestricted competition banks: 15 'The present intolerable system. bill proposes practicable solution stopping further extension state-wide reserve member permitting cities allowed laws.' H.R.Rep. No. 83, 69th Cong., 1st Sess., (1926). 16 report failed pass Senate. tracing passed following year, observed: intent desirability indicated fact Senate struck time limitation, thus subsequent change corresponding effect engage branching. concluded should 'national laws." 258, 496, quoting S.Rep.No. 473, 18 enactment law, Representative stated that: 'As result passage act, act amended able meet needs modern industry commerce equality 68 Cong.Rec. 5815 (1927). (Emphasis supplied.) 20 When economic depression 1930's brought widespread failures, responded amending 1933, strengthened equality. Some Members argued failures due under-capitalization small rural without regard law; but approach rejected. As finally passed, reported members Conference Committee, Luce, statement: 'In controversy respective merits known 'unit banking' 'branch steadily gaining favor. It not, however, here give advocates advantage. do go inch beyond saying ideas compete equal terms make possible letting institutions branches.' 260, 77 5896 (1933). 22 quality therefore firmly embedded statutes governing mechanism referring simply build self-executing accommodate changes regulation. 23 reject contention curiae Banks definitions control content 36(f).7 Admittedly, comes play deciding how, operated, 36(c) entrusted regulation branching conceived it. But allow define sole judges powers. did intend improbable result, appears inclusion 36 general 'branch.' point language perhaps overstated relation problem, since determined matter mind far concerned (allow) (to) short, given restrictive meaning frustrate found plain supra.8 Against background, turn conducted amounted within Act. Since 'necessarily subject paramount States,' St. Louis Missouri, 263 640, 656, 213, 215, L.Ed. 486 (1924), consult part defines provides: 25 Although model precision, circular aspect, minimum 'branch'; word 'include' suggests calculated indefiniteness respect outer limits term. However, bank' very least includes receiving paying lending apart premises; more. emphasized phrased disjunctive, offering three mentioned will basis finding taking place. also could equally well finding. briefly discussed possibility confine ourselves received. Specifically, resolve mobile singly fall ambit section. deposits, functions facilities essentially same, hence they considered together. 26 urge challenged activity does 36(f). relies heavily, indeed entirely, carefully drawn contracts services. urges 'deposit' art, determination casual inasmuch fixes important legal relationships parties. 27 creation purely intent, exclusively private contract. interpreted argument runs, physically premises. Until contracts, funds. 28 difficulty accepting debtor-creditor relationship creature can credited account.9 satisfied, significant than remove 'deposits' technical sense premises 29 challenge right contracting fix rights risks between themselves; nothing precludes agreeing, example, assume status bailee, liability loss transit. free see fit, follow contractual arrangements, binding determine reach 30 Because maintain equality, relevant construing consider, merely created transaction, aspects advantage customers. Unquestionably, accrues away main office; unrelated debtor creditor moment somewhat later. 31 characterize sham subterfuge order conclude conduct nature relations Here, penetrating form underlying substance satisfied delivers sum either receptacle, has, purposes contemplated 36(f), even though agreed remain inchoate brief period large-scale continuing mode conducting basic 32 putative 'received' business, compelled, view delivery received.'10 33 Here confronted systematic attempt secure privileges denies competing utility obvious; many eminently sensible operations, Florida's judicial Nor deference standards modification Currency.11 34 Affirmed. 35 DOUGLAS, dissenting. come shock, common guide, learn picking merchants' boxes Conceivably stationing designated hours opening accounts, loans, like. cases. 37 'at And 'branches' whenever, wherever, however so. Utah, 261—262, leaves impression equality' across board. case, 'intended insofar concerned.' Id., 497. (Italics added.) There overriding principle limited provide. 38 Among furnishing services, which, advised antedated years 1927 read hint respects 39 Court, 'If involved here, requirement practice conform banks.' F.Supp. 449, 453. 40 rendered cases undertaken after approval attached rather bank.'1 I thought elemental cannot arise some unequivocal whereby both express consent creditor. faithful exponent local we, ruled. F.Supp., 454. Certainly Comptroller, supervisory policing affords excuse disparaging him. This government administrative fiat; exercise discretion normally review. administrator's statutory he supervises, his expertise great leeway definition,2 rarely disturbing 41 honored here. For risk never good 42 By today, justified defining cars messengers customers, agents So our standard, reversed. authorization permissible interpretation Stewart says dissent, 'not reasonable one.' 43 STEWART, wholly applied constitute exclusive Whether standard seems me extremely close question. so, defer Currency. He official administering provisions say one. Udall Tallman, 380 1, 16—18, 85 792, 801—802, 616. 659.06(1)(a) (1965), F.S.A. '659.06 Place transacting business; school savings; facilities.— '(1) (a) Any trust company community specified original articles incorporation, specified, elsewhere. '(2) With commissioner walk-up serve patrons vehicles foot. necessary connected room building property situated contiguous thereto. Property separated street, walkway alleyway shall, subsection, situated. operation thereto violation subsection (1); provided, (2) apply existing January 1965.' 7490. 'Messenger 'To requirements otherwise, agreement wherein Deposits arrangement Similarly, check customer.' undersigned depositor, Messenger transport depositor house. 'Under Contract, solely padlocked bags furnished opened tellers. purpose, retain bag(s); bag depositor. expressly described agrees accept count final. maintains hazard covering holdup, employee fidelity, etc., benefit amounts requisitioned Unless otherwise writing, permitted *' 'Contract 'First Principal named front hereof, transmit hereof offices 302 West Haines Street, Fla. Principal's account. understood transmitting acting etc. protection Principal.' 36(c)(1) '(c) may, new branches: (1) Within city, town village situated, establishment question; granting affirmatively implication recognition, restrictions location imposed n. supra. briefs before litigants alone applies falls Reply Brief 2; Respondents' 41, 44. definitional 'Any outside carries money, branch.' 5816 Definition Branch 5A A. Michie §§ 4a, 5, 14, (1950); Am.Jur.2d 358 (1963); C.J.S. 269 (1938). try draw fine distinctions around isolated, sporadic, inconsequential transactions check, secures signature 1963 Saxon, author 2, declared '(t)he powers should, my judgment, according policies individual find appropriate State-chartered Branching Powers System, 101 Comp. Ann.Rep. 316, 318 (1963). During course debates became Stevenson remarked: '(Y)ou dictum agencies sees fit. show presently cut out, root 66 1627. Par. 7490, Banks. SEC New England Electric 384 176, 185, 86 1397, 1402, 456; 801, 616; Drum, 368 370, 374—376, 82 408, 410—411, 360; NLRB Coca-Cola Bottling 350 264, 269, 76 383, 386, 100 285; Unemployment Compensation Comm. Territory Alaska Aragon, 329 143, 153—154, 67 245, 250, 91 136; Hearst Publications, Inc., 322 111, 130—131, 64 851, 860, 88 1170; Gray Powell, 314 402, 411—413, 62 326, 332—333, 301; Rochester Telephone Corp. States, 307 125, 145—146, 59 754, 764, 83 1147; Jaffe, Judicial Review: Question Law, 69 Harv.L.Rev. 239, 261 (1955); Nathanson, Administrative Discretion Interpretation Statutes, Vand.L.Rev. 470, 490—491 (1950).

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