Westfall v. United States,
274 U.S. 256 (1927)

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U.S. Supreme Court

Westfall v. United States, 274 U.S. 256 (1927)

Westfall v. United States

No. 766

Argued March 8, 9, 1927

Decided May 16, 1927

274 U.S. 256


1. Section 9 of the Federal Reserve Act, as amended June 21, 1917, is constitutional insofar as it provides that state banks which have joined the Federal Reserve System, their officers, etc., shall

Page 274 U. S. 257

be subject to the penalties of Rev.Stats. § 5209, which punishes misapplication, etc., of a bank's funds. P. 274 U. S. 258.

2. The acts thus made criminal may be punishable also under the laws of the state. P. 274 U. S. 258.

3. It is not a condition to the power of Congress to punish such acts that they result in any loss to the Federal Reserve Banks. P. 274 U. S. 258.

4. When necessary in order to prevent an evil, the law may embrace more than the precise thing to be prevented. P. 274 U. S. 259.

5. Congress may employ state corporations, with their consent, as federal instrumentalities and make fraud that impair their efficiency crimes. P. 274 U. S. 259.

Response to a question certified by the circuit court of appeals arising upon a review of convictions under indictments for aiding and procuring misapplication of state bank funds and conspiracy to misapply them.

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