William R. Day

“ It was the evident purpose of the parties that the 83 shares of United States Steel stock, preferred, was to be held, as the receipt shows, as security for losses in purchase or sale of stocks, bonds, or securities on account of the customer, and the separate paragraph of the receipt, giving the right to repledge, etc., and substitute similar stocks, bonds, and securities, had reference to the stocks, securities, etc., obtained in executing the orders for purchase made by the customer. ”

“ Taggart's claim, we think the court properly held that she was entitled to recover her shares of stock. They were not the property of Berry & Company, but were held as collateral to her account, upon which she is not indebted to the brokers. The certificates were returned to the trustees, who had no better right in them than the bankrupt.
The rule is generally recognized that if the title to property claimed is good as against the bankrupt and his creditors at the time the trustee's title accrued, the title does not pass, and the property should be restored to its true owner ”

“ To the extent which the case involves the same general questions as to the legal relations of stockbrokers and customers, we need not repeat the discussion had in Richardson v. Shaw, by which the conclusion was reached that, under the usual contract for a speculative purchase of stock, the customer is considered the pledgor and the broker the pledgee. ”