The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1845-06-03

John H. Dykers and John .alsyne Richard l. Allen.
fungibles or things loaned be returned kind and
things which are loaned to be returned in the
Tsass NO, an ony s
loan Of one hundred shares Of the stock OF par
ticalar corporation, or Of other stock OF the IKE
another would only be necessary to return the same
amount of stock in kind The loan in such case is in
substance sale to be repaid in kind and quality and
the title to the fungbles loaned is Immediately trans
ferred 70 the borrowers whereas upon the loan Of spe-
the lender and the borrower only entitled to the tenn
porary thereof q Erskine Inst Tt l. sec is) But
mated generally by weight and measure number do
not, when deposited as pledge, become the property
pledge is not for use but merely as security II the
pledgee therefore sell the pledge without authority
chases other articles of the kind and value to be
returned to the pledgor; unless there Is some agree
he shall be permitted to do such is the effect Of the
decision Of Chancellor Kent, in the Of Nourse
Of the
remained standing in their names and under their con-
hsy s0a the cass
under ration there was no express agreement
that the pledges should be permitted to sell the stock
tract contained in the note ITSELF that they should be at
liberty to sell the stock after specific time, and in
particular precluded the idea Of any authority
to sell this stock before the note became due or at any
other place than at the board brokers' The Judge al
so properly rejected the evidence OF Jarvis to prove
custom Of the brokers in Wall street. in opposition to the
general law of the State and which custom was wholly
nconsi tent with the written contract between these
parties In the Of Lc Croy Eastman 40 Modern
Rep a99 relative to the South Sea stock the trustee had
had not been injured thereby and the trustee had not
received the benefit of sale Of the stock before the bub
latter with mere fictitious value Of worthless Stock.
II is evident however from the language OF the court in
that case that the trustee had fact sold the stock
while worth in the market six hundred per cent.
and had received that amount the SALE he would
have been compelled to account for the the Cess
81
ing to receive the value in the market Of the same kind
which stock absolutely transferred to, and was
standing in the of other the books OF the
bank but which in fact only held by such persons
collateral security for the payment Of loans Stock
standing in that situation and which had been abs olute
ly transferred to other upon the books OF the
be proper subject Of sale BY them under the provis
ions of the Revised Statutes to prevent stock jobbng
board Of brokers for the payment Of the debt il such
debt paid when became DUE did not authorize
their hands, to put the up secretly but they
should have put the stock openly and offered It for
that it stock which had been pledged for the
| security Of this debt, and with authority to
In this way only the stock would be likely to bring its
fair market value at the time was offered for SALE And
sos Il M
the benefit of the PLEDGES by some secret understand
ing between them and the purchasers II is well known
fact that shares of stock constantly sold at the Board
Of Brokers' which shares exist only in tho imagination
ofthc nominal buyers and Sellers such sales every
body knows not legally binding upon either party
When real SALE therefore, 10 to be made at the Board
of Brokers' of shares of stock which have actual
isence, and which have been pledged for the payment
Brokers' the stock should be specifically described at the
time of such sale, many shares standing in the
Of the pedgee and sold account of the pedgor
that full price is obtained for such sale, the
pedgor the stock may know that he is entitled to the
benefit Of that SALE For without such specification the
sale an advantageous one, may be put down as sale
Of the stocks of the plcagee and which have been sold
his account Secret Sales therefore, cannot be
sustained under such agreement authority There
in the decisions of the Judge at the Circuit
upon any OF the questions raised there. The judgment
Of the Supreme Court should therefore be affirmed.