Bennett

Logan & Bryan are stock brokers holding membership in the New York Stock Exchange and having offices in New York City and elsewhere. For some time prior to October, 1919, George G. Prentice conducted business as a stock broker in San Diego under the name of Prentice & Company. As such broker he purchased from Logan & Bryan for his customers certain securities, which were thereafter held by Logan & Bryan as security for the general indebtedness of Prentice & Company. At the time mentioned “the business of Prentice & Company was purchased by Mason & Owen, who thereafter, until the time of their failure, carried on a general brokerage business in said city of San Diego.” All of such securities purchased on the order of Prentice & Company were “with the consent of the purchasers, transferred to the account of Mason & Owen upon or shortly after Mason & Owen purchased the business and good will of Prentice & Company, and . . . were held by Logan & Bryan to secure the entire account of Mason & Owen.” Neither Prentice & Company nor Mason & Owen were members of any stock exchange. Other securities were purchased by Mason & Owen, for their customers, from Logan & Bryan and were held by the…