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IN RE PRUDENCE CO.

Nos. 27496, 27028.

15 F.Supp. 1064 (1936)

In re PRUDENCE CO., Inc.

District Court, E. D. New York.

May 29, 1936.

Attorney(s) appearing for the Case

Chadbourne, Stanchfield & Levy, of New York City (Horace G. Hitchcock and Charles Pickett, both of New York City, of counsel), for Manufacturers Trust Co.

Kaufman, Weitzner & Celler and Thomas Cradock Hughes, both of New York City (Emil Weitzner and Harold S. Lynton, both of New York City, of counsel), for Trustees of Prudence Co., Inc.

MOSCOWITZ, District Judge.

In June, 1932, the Prudence Company, Inc. (hereinafter referred to as the "Debtor"), sought to obtain a loan from the Reconstruction Finance Corporation. At that time the Debtor was indebted to Manufacturers Trust Company in the sum of $2,000,000, and the latter held the Debtor's note dated November 13, 1931, payable March 14, 1932, which note was secured by a mortgage participation certificate. The Debtor was also indebted to other banks...

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