�}8 OCTOBEE TERM, 1907. Mr. Lou?s Marshall, with whom Mr. E. $. Theall, Mr. Fran- cis F?xA and Mr. John A. L. Campbell were on the brief, for respondents: The relation between Shaw & Company and the b?nl?upt with regard to the shares of stock purehased by the latter for the former, was that of pledgor and pledgee, the bankrupt being the creditor of Shaw & Company, to the extent of any advances made in connection with the purehaec of the stock, in excess of the b?lc?upt act cannot be predicated upon the payment by Shaw & Company of their indebtedness to the b?nkrupt, and the .receipt of the secmities for which such indebtedness had been incurred. Bankrupt Law?-t 60a; N?w Yor/? Count? Nat?nal Bank v. Massey, 192 U.S. 138. Although the transaction under consideration occurred in .?fassachusetts, the questiona involved are to be determined not by the local law of Massachusetts, but on principles of general jurisprudence, there being no question as to the va- lidit?y of the contracts between the b?nl?rupt and Shaw & Com- pany under the local law. Sw/?t v. TFson, 16 Pet. 1; Ch?ago v. Robb?n?, 2 Black 418; Gdpke v. C?ty o? Dubuque, 1 Wall. 175; Railroad Co. v. Lockwood, 17 Wall. 357; Boyc? v. Tabb, 18 Wall. 548; Oates v. Nat?nal Bank, 100 U.S. 246; Rag/road Co. v. U.S. 34; MFr?ick v. Michigan Central R. R. Co., 107 U.S. 102; Pana v. Bow/er, 107 U.S. 541; $m?h v. Alabama, 124 U.S. U.S. 443; Baltimore & Ohio R. R. Co. v. BaWh, 149 U.S. 371; U.S. 1, 15. When ? broker purchases for a customer stock upon margin, the legal title to the stock vests in the customer. The relation of debtor and creditor exists between the customer and broker, as to the unpaid balance of the purchase money, and the stock, being in the poasession of the broker, it is deemed pledged to him as security for such unpaid balance. The rela-
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