The Detroit times., 1910-03-18
COURTS DECISION
/. IN CURR|E CASES
IS COMPROMISE
Judge Mandell Holds Hayden, Stone
& 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 II
must be admitted that the action or
Cameron Currie a. Co, In pledging
this kind of stock Is indefensible from
any legal or moral point OF view, and
that the member of the firm who
pledged with Hayden. Stone Co.
these stocks knowingly acted directly
contrary 10 the instructions OF the
customers, and against their interests.
thereby making himself guilty OF a
fraudulent conversion
With this caustic comment Judge
Mandell brings to conclusion
lengthy decision, handed down Friday
morning in the action brought by GUS
toners OF Cameron Currie a. Co., 10
recover stocks pledged with Hayden,
Stone & Co. To some OF the stock SO
pledged, the court says. the Boston
firm has q valid lien. and to this the
creditors OF the Detroit firm have no
claim. Judge Mandell makes no eff
fort to compute the amounts OF the
stock properly held by the Boston firm
and the amount belonging to Currie
G. Co.'S customers, merely laying
down the principles of law on which
he based his findings, and leaving IL
to an accountant to determine the
amounts.
The report of the accountant dis
closed that Cameron Currie q co.
owed HAYDEN Stone e. Co. Sl,34O,Ooo
at the time of the failure, and the
latter held stocks valued at $l,6OO,OOo
as security. over 400 customers or
Cameron Currie Il Co. claimed an In
tereAt I'm these securities, holding that
the Detroit firm had no right TO pledge
them. II was to fix the amount or
these stocks wrongfully pledged and
10 determine the nature and extent
OF the defendants lien. that suit was
brought. Judge Mandell maze IL
plain that at present he would not at
tempt to determine the right OF any
particular individual or intervenor 10
participate In any funds that may be
available as a result OF the determn-
alton OF these questions.
Judge Mandell holds in brief that
HAYDEN, Stone & Co have good anu
valid lien upon all securities owned
by any member OF the firm OF Cameron
Currie & Co., upon all securities depos,
tied with Cameron Currie & Co. by
customers or friends as loan 10 thai
arm. and under privileges acquired by
the terms OF the loan. deposited with
HAYDEN, Stone 4 Co: upon all STOCKS
Ii.rchased by customers or Cameron
Currie & CO. through Hayden, STONE
e Co on margin: upon all such STOCKS
as we're at any time shipped by CAM
eron Currie & Co. to the Boston firm
and nv II held as security for the pay
ment OF Cameron Currie a. Co.'S gen.
c~al account, and on securities ac-
CURED by purchase from Richardson
ain e. Co. and z & G. Randolph, as
they have shown were acquired In the
due course OF business and In good
faith.
Judge Mandell holds that the evil
dence shows that in acquiring these
STOCKS Hayden, Stone & Co. parted
with value. and it only remains to be
determined whether they acted In good
faith.
The intervenors held throughout the
trial that Hayden. Stone a. GO. must
have known for long time OF ths
desperate financial condition OF cam
,ron Currie & Co because OF their
remarkable and in many Instances
costly ways OF doing business. and
from the "kiting OF accommodation
drafts.
The BOSTON firm claimed that at no
time previous to July IA, had 1t had
notice that Cameron Currie & co.
we're not solvent, and pointed to the
fact that on July %, it paid out almost
q million dollars in the acquiring or a
large Indebtedness OF Cameron Currle
& Co. to two other eastern brokers'.
IN examination OF all the evidence led
Iudoe Mandell to the opinion that up
to June %, 1908, Hayden. Stone & co.
had no reason 20 suspect that Cam
eron Currie & Co. were not solid, aui
acted in good faitn. For what transac-
lions that took place after that date ne
holds the Boston firm Responsible.
For whom Is the decision VIC
torvq" Judge Mandell was asked.
"'rhat cannot be determined until
after the computations are made was
mis- answer.