IN RE PRUDENCE CO.

No. 40.

92 F.2d 419 (1937)

In re PRUDENCE CO., Inc. BROOKLYN TRUST CO. v. PRUDENCE CO., Inc., et al.

Circuit Court of Appeals, Second Circuit.

November 1, 1937.


Attorney(s) appearing for the Case

Cullen & Dykman, of Brooklyn, N. Y., (Ralph W. Crolly and Patrick J. Mahoney, both of Brooklyn, N. Y., of counsel), for appellant.

Thomas Cradock Hughes and Emanuel Celler, both of New York City (Irving L. Schanzer and Hubert Margolies, both of New York City, of counsel), for appellees trustees of the Prudence Co., Inc.

Before MANTON and CHASE, Circuit Judges, and COXE, District Judge.


MANTON, Circuit Judge.

March 1, 1927, the Prudence-Bonds Corporation, owner of bonds and mortgages, pledged the same as collateral security for the payment of its bonds amounting to $4,300,000. These bonds were sold to investors and guaranteed as to principal and interest by this debtor (Prudence Company). The Prudence-Bonds Corporation at the same time entered into a trust agreement with the appellant, pledging with it these bonds and mortgages for the benefit of...

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