Clements v. Arrowsmith

Backes, Y. C.

R. J. Arrowsmith, Incorporated, was a stock brokerage house in East Orange until it failed in December, 1930. The complainant, Clements, dealt with it in stocks on a margin account, was an ardent speculator and its best customer. His margin was in the thousands, his speculations in the hundreds of thousands of dollars, and his account usually carried fifteen to twenty different stock issues which he bought and sold in his daily play with the market. He was experienced in the game when he started the account with the Arrowsmith company in 1928 and was successful until the crash in…