In re J. F. Pierson, Jr., & Co.

Citations

• 225 F. 889
• 1915 U.S. Dist. LEXIS 1325

Syllabus

<p>J. Bankruptcy «=>140—Brokers—Rights or Customers.</p> <p>Where a bankrupt stockbroker did not have in his possession free and clear stock equal to the claims of all customers for whom he had purchased stock, none of the customers could reclaim any part of the stock on hand, or any part of the equity in such loans as had among their collateral the remaining stock, though, where he had in his possession stock free and clear sufficient to satisfy all the customers, it would be presumed that lie had purchased it to keep good his obligations to the customers, who could reclaim the stock.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 198, 199, 219, 225; Dee. Dig. <@=3140.]</p> <p>2. Bankruptcy «=>140—Brokers—Rights of Customers.</p> <p>A customer of a bankrupt stockbroker, who showed that his account had a credit balance when the petition in bankruptcy was filed, but who could not trace ids stock by certificate number into a loan secured by stock as collateral, had no superior equity, and could not reclaim any stock.</p> <p>1 Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 198, 199, 219, 225; Dec. Dig. «=>140.]</p> <p>3. Bankruptcy «=>320—Brokers—Rights of Customers.</p> <p>A customer of a bankrupt stockbroker, who could not trace stock purchased for him, and pledged for loans, was entitled to a set-off equal to the value of the stock when converted; and where the customer, having the burden to show the date of the conversion, did not show it as of any given date before date of bankruptcy, the value of the stock could be fixed as of that date. )</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 514; Dec. Dig. 4=320.]</p> <p>4. Bankruptcy «=>140—Brokers—Rights of Customers.</p> <p>A customer of a bankrupt stockbroker, who was credited with the proceeds of stock as of the date of bankruptcy in a sum sufficient to wipe out ills debt, and which gave him stock free and clear, came within the preferred class, and could reclaim the st