The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-03-19
|eOORT's DECISION
IN CURR|E CASES
/ Is COMPROMISE
fudge Mandell Holds Hayden, Stone
4 Co. Have Lien on Much Stock,
But Are Responsible for Transac-
tons After June %, 1908.
Cant Tell for Whom Finding Is
Victory Until Computations Are
Made" Says Jurist.

1T is not here contested. but IL
must be admitted that the action OF
Cameron Currie & Co, in pledging
this kind OF stock is indefensible from
any legal or moral point OF view, ana
that the member OF the firm VINO
pledged with Hayden, Stone * CO.
these stocks knowingly acted directly
contrary TO the instructions OF the
customers. and against their interests
thereby making himself guilty OF
fraudulent conversion
With this caustic comment Judge
Mandell brings to conclusion
n lengthy decision, handed down Friday
morning in the action brought by Gus
toners OF Cameron Currie Co.. 10
. recover stocks pledged with hayden
stone & Co. To some OF the stock SO
pledged, the court says, the Boston
firm has a valid lien. and TO this the
creditors of the Detroit firm have no
claim. Judge Mandell makes no Ell
fort to compute the amounts OF the
stock properly held by the Boston firm
and the amount belonging 10 Currie
& Co.'S customers, merely laying
down the principles of law on when
he based his findings. and leaving u
to an accountant TO determine the
amounts.
The report Of the accountant dis
! closed that Cameron Currie 4 co.
owed HAYDEN, Stone e. Co. s1.S40,Ooo
ut the time OF the failure, and the
latter held stocks valued at sl,6OO.OOO
as security over 100 customers OF
Cameron Currie & Co. claimed an in
terest In these securities, holding that
the Detroit firm had no right 10 pledge
them. II was to fix the amount OF
these stocks wrongfully pledged and
4 to determine the nature and extent
of the defendants lien. that suit was
brought. Judge Mandel made IL
plain that at present he would not at
tempt TO determine the right or any
particular individual or interyenor TO
participate in any funds that may be
available as a result OF the determin-
alton of these questions.
Judge Mandell holds in brief that
Hayden, Stone & Co have good and
valid lien upon ali securities owned
by any member of the firm OF Cameron
(urrie & Co, upon ali securities depos-
tied with Cameron Currie & Co. by
customers or friends as loan 10 that
arm. and under privileges acquired Dy
che terms OF the loan. deposited with
HAYDEN, Stone & Co; upon all STOCKS
.Is.rchased by customers or Cameron
Currie & Co. through Hayden. stone
e& Co. on margin: upon all such STOCKS
as were at any time shipped by CAM
eron Currie & Co. TO the Boston frfa
and by il held as security for the pay
ment OF Cameron Currie & Co.'S gen.
oral account, and on securities &C.
cuired by purchase from Richardson,
uill q Co. and +. & c. Randolph, ds
they have shown were acquired in the
due course OF business and In good
faith.
Judge Mandell holds that the eri-
dcnce shows that in acquiring these
stocks Hayden. Stone & Co. parted
with value. and il only remains TO be
determined whether they acted in good
faith.
The intervenors held throughout the
trial that Hayden. Stone a. Co. must
have known for a long time or tne
desperate financial condition of CAM
tron Currie & Co. because OF their
remarkable and in many instances
costlv ways OF doing business. and
from the "kiting' OF accommodation
drafts.
The Boston firm claimed that al no
time previous to July IA. had it had
notice that Cameron Currie K Co.
were not solvent, and pointed TO the
fact that on July %, it paid out almost
million dollars in the acquiring of
large indebtedness OF Cameron Currle
q Co. to two other eastern brokers.
An examination os all the evidence led
Nudge Mandeil to the opinion that up
TO June %, 1908, Hayden. Stone & Go.
had no reason TO suspect that Cam
eron Currle & Co.. were not solid. AMI
acted in good faitn. For what transac-
Iions that took place after that date ne
holds the Boston firm responsible.
"For whom is the decision vic
tory" Judge Mandell was asked.
"That cannot be determined until
after the computations are made" was
his answer