107 N.Y.S. 1057 | N.Y. Sup. Ct. | 1908
This application, made by the assignee of a firm of insolvent stock brokers for directions as to the disposition of certain securities now in his possession, presents interesting questions. While still doing business, and before its failure, the petitioner’s assignor pledged with the Colonial Bank of New York various securities as collateral to a note which, with interest, amounted to $35,004.86 on the 22d day of August, 1907, the latter being the date of the failure and assignment. Most of the stocks pledged as collateral on this loan were being carried for various customers of the firm on margin. Three hundred shares of United States Steel common stock, however, belonged to one Mrs. Adelaide Thaw Beach, free of any lien or charges, she having left it 'for safe-keeping with the said brokers. The market value on August 22, 1907, of all the securities thus pledged as collateral aggregated about $42,965.72. Enough of the stock was sold to satisfy the loan. Among the securities so sold were 300 shares of United States Steel common stock owned by the said Adelaide Thaw Beach, and the price realized for these 300 shares was $9,337.50. Among the ' securities delivered to the petitioner, the market value of which on August 22, 1907, aggregated $6,700, were securities which were heing carried for customers on margin or which were owned by the customers and had been deposited by them to secure their trading accounts. Prior to the' assignment made by the brokers to the petitioner two of the customers, Henck and Townsend, who were carrying stocks on margin or had deposited stocks as security/ respectively made or caused to be made to the brokers a tender of the amount due and a demand for delivery of the stocks, but the tender was rejected and delivery was refused. This tender and demand terminated the right of the brokers to retain the securities and vested in the customers an immediate right of possession. Lawrence v. Maxwell, 53 N. Y. 19; Kortright v. Cady, 21 id. 343; Stoddard v. Hart, 23 id. 556; Douglas v. Carpenter, 17 App. Div. 329; Matter of Pierson, 19 id. 478; Field v. Sibley, 74 id. 81; Rothschild v. Allen, 90 id. 233; Sheridan v. Presas, 18 Misc. Rep.
Motion granted as indicated, with ten dollars costs to petitioner.