Page:Federal Reporter, 1st Series, Volume 10.djvu/343

 NEW OELEANS NAT. BANKING ASSOCIATION V. WILTZ. Ml �requested the said association to permit the transfer of said stock ixx order to realize thereon, as the cashier or president of complainant bank was authorized, under said act of pledge, to make such transfer, but that the said insurance association declined to accede to the com- plainant's demands. And complainant, therefore, prays that an account be taken of the amount due it by said defendants P. S. Wiltz & Co. ; that it be decreed to have a lien and right of pledge upon the said shares of stock, and the accrued dividenda thereon ; that the said stock be ordered to be sold, and the insurance association directed to make the necessary transfer thereof upon its books, and that com- plainant be paid by preference the amount realized by the said sale, together with the amount of said accrued dividends, to be applied by complainant in extinguishment of the said debt of Wiltz & Co. �The defendant the New Orleans Insurance Association answered, denying the validity of the act of pledge herein declared on, upon the grounds that the same was informai, and that it had not been re- corded as required by the laws of this state, and that it conferred no privilege on the said stock ; that said insurance association had not been notified of the said pledge. They further answered that they had refused to make the transfer of stock and dividends claimed by complainant, upon the ground that the said defendants P. S. Wiltz & Co. were indebted to them, and that under their charter no transfer of stock can be made nor dividends thereon paid while the holder of said stock is indebted unto the said insurance association ; that on the thirteenth day of April, 1874, the said insurance association obtained a judgment against said Wiltz & Co. for the sum of $20,000 and interest, and that said shares of stock were seized under execu- tion thereon and sold on May 21, 1878, and realized the sum of $1,150.15 ; that they had a lien upon said stock to secure the said indebtedness of Wiltz & Co. to them. They further aver that the president and several of the directors of complainant corporation were directors in said insurance association, and had full notice of said provisions of charter, and of the indebtedness of Wiltz & Co. to the insurance association. They admit that the sum of $925 accrued as dividends upon said stock during the years 1873, 1874, 1876, 1876, 1877, and 1878. A general replication was filed to this answer by complainant, and the defendants P. S. Wiltz & Co. having failed to answer, the bill has been taken as confessed as to them. �The proofs and admissions in the record show the indebtedness of P^ S. Wiltz & Co. to complainant as alleged, and that the ahove-described shares of stock were pledged to complainant, and the certificate of sueh ��� �