The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-08-15
4 PtWNBROKER.S DECISION.

for the conversion OF Jewels under Tho fol
lowing rircun stances The plaintiffs a.
sisnor. an English woman. VAS traNellnl
With her husband In this country. when sh'
was ohl gel Ia sell part of her persons
ieN-irv They took the jewelrv 10 a Tsputa
hie Fiith avenue shop. where they We're
told that they DID not bay iewelrN over the
counter but that one Weber was brokrr
/ ia iewelrv. They accordingly went 10 Weber
B Giving hun some so 80 worth OF gems they
agreed To give him percentage on What
/ he sold and limited him rs 10 price, 30
| Weber took the Jewels as requested and the
J same dav paWnel them for o., iDo with
Thomas simpson. a licensed pawnbroker
| The owner then returned TO England. re-
| CeivinR the first intimAtion Of Weber, act
F 'hrough his trustee in bankruptcy, WHO
stated that he held tho tickets subject Ia
her order She thereupon sued simpson fof
COM er-ion
/ TN the trial II was conceded that az the
| time simpson advanced the money he Vas
wholly ignorant OF the fact that Weber did
not own the goods or that Weber was EN-
ploved 10 sell them only under limited con
ditlons. and that simpson acted In perfect
good faith The defendant pleaded in sup
port OF his position the factors act. but the
trial court disallowed the defence This
view IL now upheld nv the Appellate III
/ vision. although Justice scott has written
an elaborate dissenting opinion.
Tho factors act chapter 10. laws Of
$500 provides among other things that a
person entrusted with a bill Of lading or
other evidence OF title. or With tho goods
! for The purpose Of sale. shall he deemed the
/ true owner OF the goods so far as to give
validity to anv contract With third per
son for money advanced In he sale or
pledge OF the goods Justice Clark. speak
ing for q majority Of the court. holds that
tho law was not in ended to cover . case
like the present. He declares that II was
intended o facilitate business transactions
and relieve them from the strict rule OF the
common law covering two classes OF trans
actions. FIRST. those in! which agents or
factors were entrusted with warehouse re-
Ceipis or OF her documentary indicia Of own n
ership. taking the place OF the actual pos
session OF the goods In commerce and sec
ond affecting only . hose brokers and factors
ordinarily doing the Kind Of business emu
meraied in the statute He considers that
this was neither such . transaction e. was
contemplated by the statute nor thai q pawn
broker as such has any protection there
under a. an innocent purchaser or Pledge.
He saws
Nor does the pAWnbroker come within the pur
view OF the act Ne IL under . special body Of law.
70 Keep specined books which are open 10 inSpec
ticn BY the courts and the police authorities and
he Il permitted 20 take very large rate Of inter
-, upon the loans advanced upon the pledge OF
personal properly. lie exists TO accommodate
the necessities Of the noor. and i not . recog.
niz>d instrument In The ordinary trade and com
merce Of the country In regard to which the
fartofs &C., passed
white II IL true that IL Is ecucedeu IN the ea.<
that hr acted In rood faith. yet that docs help
him n Weber VAS not such factor Arent
covered by the terms OF the statute Weber
Onmffr ell and could Transfer , he
title than he had
In this view Justices lnRraham Iaughlin
and Miller concur Justice scott. on tho
other hand. strongly eNCcpts TO the deci4ion
about 20 l." handed down by his colleagues
ami finds that The psWnbroker here a. any
rate. - entitled 20 the protection OF the
statute lie considers tL,s an unusual ,asa
Tor MANY reasons first. because the Iesel-
came laWfully IN the hands or Weher Yolun-
'ar,ly from The oV u"r for al soluie sale sud
disposition Weber was therefore saws
lus'l," Scott. an agent. not having the
do,umenfarv evidence Of title vino Was
entrusted with the posse -sion VI MERIDIAN
disc for the purpose OF sale This teing
the WopIing OF he statute the argument
proceeds. the Legislature must have IN
tended 10 include within its provisions JUST
such use a. this. Weber being engaged
N the business Of dealer and broker Of
. reJ iou- stones "Of conr--, continues
4
-, - -, -,
~. ~. - - Ni''
!. O'' '",''''Nu ""O" 49, s"u eAp"''"h'e
'ha' " u we s'o'"' OF ste" o"s ness en-
ietpr'-e' "t SAFE anu barter, anu OF lmpor-
fattOn ana expectation True. The JeNelry
oNned bN plHintin as.ignOt Nhils retained
by her for personal sdoTnment vas with
drawn from trade and for the time ceased
10 b. merchandise a. thst term 10 or,I,na-
rily us.d bat a hen .ha determined a ,Ii.no..
-, =, .nd .nt r,t.t.d 4, "A an ag.o, Tar 81. a.,
-. 90. ~, ,.,,,Id ,,u,.h... !, h.r -. -.
80, -, -, g.. q. 3D.. -n.n..i
" ~ - :, - ,,a ~, ""s
SUI -, 'uu o'
NV "a"" w " NV" "pp"S'r
'hc view OF INC "sIo'"' at u" 'ohI' on 'he
-tA"- OF paNhoIoAet IN 'hS race OF me
factor ati
The prevailing OplLIon Inumates thu, even ~
All the other statutory condItoa. be present stIlI
the defendant because he 4 q pANnbroker. can
not avail himself OF the protection of the fac
tot act and the Inference L. that ~ the loan had
been made under Ike Circum sta nres By q ban or
banker me factor ; act might be foand 10 spply
I am Unable 20 see the forck OF this distinction
The business 81 pa~nbrokins Il no, snAthenA in
go. eNe NJ the laU hut On ,hs rontr,,, ,.hu.