In re McCown

KIRKPATRICK, District Judge.

Frank C. MeCown, trading as MeCown & Co., was a stockbroker and a member of the Philadelphia Stock Exchange. In the course of his business, he borrowed from J. S. Bache & Co., another member of the Stock Exchange, and as collateral for the loan pledged with Bache & Co. certain securities. For the purpose of this decision it is immaterial whether the securities were his own or those of his customers, and it may be assumed that, if they belonged to his customers, he had the right to pledge them. A petition in bankruptcy was filed against McCown February 28, 1927, and…