Appeals, Nos. 308, 309 and 312, Jan. T., 1963, from decree of Court of Common Pleas No. 3 of Philadelphia County, June T., 1959, Nos. 1859 and 2187, in cases of Provident Tradesmens Bank and Trust Company v. L. J. Kabian and William J. Rankin, executor of estate of Margaret I. Rankin, deceased; and William J. Rankin, executor of estate of Margaret I. Rankin, also known as Margaret Isabel Rankin, deceased, v. Ludwig J. Kabian, also known as Ludwig J. Kabakjian. Decree affirmed; reargument refused July 1, 1964.
William M. Marutani, with him MacCoy, Evans & Lewis, for plaintiff.
Arthur Silverman, with him Ettinger, Gallagher & Silverman, for defendant.
Before Musmanno, Jones, Cohen, Eagen, O'brien and Roberts, JJ.
OPINION BY MR. JUSTICE COHEN
The executor of the Estate of Margaret I. Rankin filed a complaint in equity in the court of common pleas to recover securities delivered as collateral for a loan to Ludwig J. Kabian and money allegedly loaned by decedent to Kabian. The chancellor found for the estate as to the securities but found for Kabian on the alleged indebtedness. Exceptions to the chancellor's findings of fact and conclusions of law filed by plaintiff and defendant were dismissed by the court en banc. Both parties appealed.
A fair recital of the facts is as follows: For thirteen years prior to her death at age 74, Margaret I. Rankin served as bookkeeper for Kabian's laundry business. In addition, Miss Rankin and Kabian entered into various transactions involving securities, including loans,
sales, purchases and joint ventures. Before July, 1956, Miss Rankin deposited certain securities with the Girard Trust Corn Exchange Bank as collateral for a loan in her name. In early July, 1956, the bank, at Miss Rankin's request, forwarded these securities to a New York brokerage firm, Josephthall & Co. (Broker), where they were used as collateral for a loan by Broker to Kabian in the latter's name. Since the securities were originally registered in Miss Rankin's name but were to be used as collateral for Kabian's loan, Broker required Miss Rankin to execute the following hypothecation certificate:
"I (we) herewith deliver to you the following securities, duly assigned in blank: [listing of certificate numbers, names and quantities of securities.]
"Registered in the name of Margaret I. Rankin which please credit to and carry for the account and as ...