
    [No. 8,562.
    Department Two.
    February 3, 1885.]
    MARSHALL ARNOLD, Respondent, v. MARY JOHNSON, Appellant.
    Pledge—Delivery of Endorsed Stock Certificates—Apparent Ownership.—The owner of stock who voluntarily delivers the endorsed certificates to a third person, allows him to assume the apparent ownership of the stock, and cannot recover the same from a bona fide pledgee of the apparent owner, without payment of the debt for which the pledge was made.
    Appeal from a judgment of the Superior Court of the city and county of San Francisco, and from an order refusing a new trial.
    The defendant, on August 1, 1877, was the owner of twenty shares of stock of the Safe Deposit Company. The company doubled the number of its shares of stock, and resolved to issue new certificates for twice the number called for by the then out-, standing certificates, which should be surrendered to the company. The defendant, for the purpose of availing herself of this privilege, delivered to J. C. Duncan her certificate of stock, with her name endorsed upon the back thereof, so as to make the title thereto pass by delivery. Duncan pledged the certificate to secure the payment of his promissory note. The pledgee had ho notice of the real ownership, and received the certificate in due course of business. The note has never been paid, and the respondent, an assignee of the original pledgee, is now the owner of it. The appeal is from a judgment in favor of plaintiff, for the recovery of the. certificate- issued in lieu of the one endorsed by the defendant to Duncan.
    
      George F. & Wm. H. Sharp, for Appellant.
    Upon the facts as found, the appellant was entitled to judgment. (Barstow v. Savage Mining Co., 64 Cal. 888.)
    
      Wallace & Hastings, for Respondent.
    The defendant having endorsed and delivered the stock to Duncan, furnished him with the indicia of ownership, and as against one who acted upon such appearances, is estopped to deny that Duncan owned the stock at the time it was pledged by him. (McNeil v. First National Bank, 46 N. Y. 325; Winter 
      v. Belmont Mining Co., 53 Cal. 428 ; Thompson v. Toland, 48 Cal. 99; Brewster v. Sime, 42 Cal. 139; Maynard v. F. F. Ins. Co., 34 Cal. 48.)
   The Court.

The difference between this case and Bar-stow v. Savage Mining Co., 64 Cal. 388, is, that in this case the owner of the stock voluntarily delivered the indorsed certificate to the person who pledged it, while in that, the indorsed certificates were stolen from the owner of the stock. In this case the owner allowed another to assume the apparent ownership of the stock. In that, the owner did not allow another to assume the apparent ownership. The distinction is an important one, and brings this case within the rule stated in NcNeil v. Tenth National Bank, 46 N. Y. 325, cited approvingly in Barstow v. Savage Mining Co., supra ( Vide Ambrose v. Evans, 66 Cal.)

Judgment and order affirmed.  