Duncan v. Johnston & Co.

MACK, Circuit Judge.

Appellant had an account with bankrupts, buying and selling for cash and not on margin, investment securities. Her account at all times had a substantial credit balance. In May and June, 1922, she delivered to bankrupts, for safekeeping until ordered sold, one $1,000 Second, and ten $1,000 Fourth, Liberty bonds; the serial numbers were not known. Without her knowledge or consent, bankrupts wrongfully pledged them as collateral. Pledgees carried $1,000 worth of Second and $10,000 worth of Fourth Liberties together with other kinds of securities at all times in bankrupts’…