The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-07-05


The United States Supreme Court said the question A
between Powell & Co. (the pedgors and Tome representa-
the appellants he pedgee the property in the shares stock
undoubtedly passed the latter without the orlnaity Of
transfer the books of the Watsonown Bank As coaar
security the payment of their notes. discounted held
the Cecil National Bank and with the power sell for The
purpose of payment the title passed by the delivery OF the
certificate, with the accompanying power of attorney Ma
tionat Bank q. Watsontoaon Bank, los q. S. 22O
It necessary the bar far con
strucon of this the authorities cited would warrant
however confident in the opinion that when Winter en-
dosed and delivered the certificates of stock to pledges
with the power of SALE the legal title stock
passed Winter vested the respective pedgee that
the only by which Winter could have reinvested himself
with the legal title the stock e. the payment of the money
DUE performed during his fetme that plaintiff the
administrator took only the title that Winter had the time
his decease and less and stands in his place
that these actions concerned the parties within
the exception of the statute sec 2o16 the controversy being
"between the parties thereto; that the administrator
this tme after default in the payment of these debts has the
right redeem the stock by payment of the of the
debts and that if this DONE these PLEDGES have the right
proceed sell the stock in the provided by law and
apply proceeds the debts accounting
to the administrator only for the excess, if any.
1t follows that the question No. will be that the
legal title the stock stands in the Pledge and that No
should be answered in the negative, and that affirmative
answer should be returned to No. 8.
Let Judgment be entered accordingly
B. L. Mara and Hatch Dc Siiman for plaintiff
Holmes Stanley and Kinney, Baltou McCldnahan for
defendants
CoNcURRING OPINION OF FREAR. CD
There much difference of opinion the proper consrue
ton and application of provision that transfer Of stock shall
be valid except between the parties thereto until certf
cate shall have been obtained the transfer shall have been
recorded the books of the corporation Some courts make
distinction between statutory provision of this kind and SINH
lar provision the charter bylaws only Some base dis
nction upon whether there is also provision that the
book of the corporation shall be open creditors of stock
holders the public generally creditors of the corpora
only Section 2021 of the Civil Laws does require
that the book shall be open creditors other than those of
the corporation The tendency
holding that provisions of the kind in question intended for
the benefit of the corporation its creditors and stockholders
and for the benefit of the public the creditors of the
stockholders and that by
dosement and delivery of the certificate valid against all
but bona fde takers for value without notice Among the
various grounds assigned for this probably the ec
tive the quanegoabe character of certificates and
the desirabty from commercial standpoint of having the
buying and selling of stocks free and safe possible
Whether attaching creditor would have priority
ransferee in the of unrecorded transfer question
upon which there good many authorities each side
writers contendng that the weight of authority and
support of the view that creditors would
have such priority. See Cook Stock and Stockholders Sec
4S6 ct seq But general creditors who actually
acquired any lien stock there seems
less question The question here whether adminsraor
of decedent nsoven estate is be regarded representing
the deceden the general creditors and if the latter whether
he has priority against transfer by Endorsement and delivery
of the certificate by the decedent in his life in
temptation of insolvency who took in goodfaith and
for value The that the transfer would hold good in such
case have been practically adopted in this ursc
ton the of Castle Cooke Smith, Haw $40, where
unrecorled transfer pledge was held valid against
assignee bankruptcy of the transferor it would be