Page:Federal Reporter, 1st Series, Volume 10.djvu/342

 330 FEDERAL REFOBTEli. ���New Oblbans Nat. Bankintg Association y. P. S. Wiltz & Co. and �another.* �(Circuit Court, E. D. Louisiana. July, 1881 ) �1. Capitai. Stock. �Stock in an incorporated company in Louisiana is property, and not a credit; and it is transferable and salable by actual contract theruto, and a delivery of the certiflcate. �Smith V. Slanghter-house, 30 La. Ann. 1378. �2. Saub — Plbdge— Liens and Phitilboes. �It can, tlierefore, be pledged by contract and the delivery of the certiflcate, and when pledged in this manuer the pledgee takes it subject to all the liens and privileges the law puts upon it ; but no lien or privilege can attach except by or under operation of law. �3. GENERAL Incorporation Law. �The charter of a company, formed under the general incorporation law, cannot create any privilege unknowa to the law of the state, uniess the power was expressly given in the general law, whioh it ia not. �In Equity. �John D. Bouse and William Grant, for complainant. �Alfred Grima, for defendant Insurance company. �Pabdee, g. J. The bill of complaint herein sets forth that the said complainant was, on the tweaty-eighth of February, 1873, the holder and owner of a certain promissory note drawn to their own order, and indorsed by said defendants P. S. Wiltz & Co., for the sum of $12,000, and payable 90 days after date; that in order to secure said note the said P. S. Wiltz & Co. pledged to complainant 50 shares of the capital stock of the defendant the New Orleans Mutual Insurance Association, and delivered the certiflcate of such stock to complainant, the said shares of stock then standing in the name of said P. S. Wiltz & Co. upon the books of said association; that said note was renewed several times, the said stock always remaining in possession of complainant as a security for said debt, until on the eighth of December, 1873, the amount due on said note was evidenced by the note sued on herein for $12,000, dated December 8, 1873, and payable 30 days after date, drawn by said P. S. Wiltz & Co. to their own order, and by them indorsed; that said defendant the insurance association had notice of said pledge, and that it bas in its hands a large amount of accrued dividends due on said shares of stock; that complainant has demanded from said association and �*Reportedby Joseph P. Hornor, Esq., of tho New Orleans bar. ��� �