Schillner v. H. Vaughan Clarke & Co.

SWAN, Circuit Judge.

This action is based upon the provisions of section 12 of the Securities Act of 1933, 15 U.S.C.A. § 771 which is printed in the margin 1 with immaterial omissions. The plaintiffs are a widow and her daughter, both well advanced in years and lacking experience in financial matters, to whom H. Vaughan Clarke & Company, a stock brokerage house whose main office was in Philadelphia, sold two blocks of common stock, each for 100 shares, in Kinsey Distilling Company. The sales were made at Rome, N. Y., in September 1936 and May 1937, respectively, and for each block of stock the…