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IN RE PRUDENCE CO.

No. 271.

88 F.2d 628 (1937)

In re PRUDENCE CO., Inc.

Circuit Court of Appeals, Second Circuit.

March 1, 1937.

Attorney(s) appearing for the Case

McManus, Ernst & Ernst, of New York City (Irving L. Ernst, of New York City, of counsel), for appellant.

Kaufman, Weitzner & Celler and Thomas Cradock Hughes, all of New York City (Thomas Cradock Hughes, Emanuel Celler, and Jesse J. Fine, all of New York City, of counsel), for appellees.

Before MANTON, SWAN, and CHASE, Circuit Judges.

CHASE, Circuit Judge.

The appellees are the trustees duly qualified and acting for the Prudence Company, Inc., the debtor in proceedings for reorganization under section 77B of the Bankruptcy Act, 11 U.S.C.A. § 207. Part of the business formerly of the debtor was the sale of guaranteed bonds secured by mortgages on real estate. In the course of its business the debtor had made a loan to River House, Inc., a New York corporation, and taken as security a mortgage...

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