Page:United States Reports, Volume 209.djvu/401

 RICHARDSON . SHAW. 209 U. 8. Olinion of the Court. until notice is given by either party that the transaction must be closed. An appreciation in the value of the stocks is the gain of the customer and not of the broker; "4. At all times to have in his name and under Ms control ready for delivery the shares purchased, or an equal amount of other shares of the same stock; "5. To deliver such shares to the customer when required by him, upon the receipt' of the advances and commissions accruing to the broker; or, "6. To sell such shares, upon the order of the customer, upon payment of the like sums to him, and account to the customer for the proceeds of such sale. "Under this contract the customer undertakes: "1. To pay a nmrgin of ten per cent on the current market value of the shares; "2. To keep good such margin according to the fiuctnations of the market; "3. To take the shares so purohased on Ms order whenever �equimd by the broker, and to pay the difference between the percentage advanced by him and the amount paid therefor by the broker. "The position of he broker is twofold. Upon the order of the customer he puhases shares of stocks desired by him. This is a clear act of agency. To complete the purchase he advances from Ms own funds, for the benefit of the purchaser, ninety per cent of the purchase money. Quite as clearly he does not in tMs act as an agent, but assumes a new poeition. He also holds or carries the stock for the benefit of the purchaser until a sale is made by the order of the purchaser or upon his own action. In thus holdin or carryin he stands also upon a different ground from that of a broker or agent whose office is simply to buy and sell. To advance money for the purchase, and to hold and carry stocks, is not the act of the broker as such. In so doing he enters upon a new duty, obtains other rights, and is subject to additional responsibilities .... In my iudgment the contract between the parties to this

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