Kennepohl

The defendant Cary & Company, a copartnership, was organized in the late fall of 1924. On January 1, 1925, pursuant to paragraph 3, section 5, Corporate Securities Act, as amended in 1923 (Stats. 1923, p. 90), Cary & Company, as principal, and the appellant indemnity company, as surety, executed and delivered a bond to the state of California in the penal sum of $5,000. This bond was executed in connection with the issuance by the corporation commissioner, of a license authorizing Cary & Company to transact business as a securities broker. On June 25, 1925, the plaintiff! entered into a transaction with an agent of the Cary Company, whereby she agreed to buy through said company,' seventy-five shares of Pacific Diesel Company’s stock at $9.25 per share, at the same time delivering to said company as security for payment of said stock, five shares of preferred stock and six shares of common stock of the Nicholls Grain and Milling Company. The complaint alleged that plaintiff never received the Pacific Diesel Company’s stock and further that the Nicholls Grain and Milling Company stock was never returned to her. The trial court gave judgment against the surety company on its bond…