Page:United States Reports, Volume 209.djvu/402

 376. OCTOBER TERM, 107. Opinion of the Court. 209 U. 8. tion was in spirit and effect, if not technically and in form, a contract of pledge." The case has been approved in other cases in New York, some of which are: $ewar v. roe, 46 N.Y. 449; $mo v. Jerome, 54 N.Y. 480; Baer v. Dace, 66 N.Y. 518 (ura v. SmtA, 81 N.Y. 25; (/ v. Whg, 120 N.Y. 402; v. Banner, 184 N.Y. 121; Dour/as v. Caer, 17 App. Div. 3'29. And approved in other States: Cashm v. Roo, 8 California, 373; Brewster v. Van Lw 119 Illinois, 554; - Fa v. H0w, 5 Pa. St. 41; Wnoo v. $, 4 Pa. St. 361; Easer v./adera, 71 Pa. St. 76. The subject was fully considered in a case which leaves Connecticut, 198, in which the conclusions in Marlam v. Jaudo were adopted and approved. These views have been very generally accepted as settled law by the text writers on the subject. 1 Dos Passos on Stockbrokers (2d ed.), 179-200; Jones on Pledges, �6; Mechem on Agency, �6. Mr. Jones, in hs work on pledges, summarizes the law as follows: "The broker acts in a threefold relation: first, in purchasing the stock he is an agent; then in advancing money f6r the pur- chase he becomes a creditor, and nally, in holding the stock to secure the advance made, he becomes a pledgee of does not matter that the actual possession of the stock was never in the customer. The form of the delivery of the stock to the customer, and a rcdelivey by him to the broker, would have constituted a strict, formal pledge. But this delivery and redelivery would leave the paries in precisely t. he me situation they are in when, waiving ths formality, the broker retains the certificates ss security for advances." In Dos Passos on Stockbrokers, at page 114, the author says: "Upon the whole, while it must be conceded that there are incongruous features in the relation, there seems to be no hardship in holding that a stockbroker is a pledgee; for although it is truc that he may advance all or the greater part of the

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