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WOODRING v. WARDELL

No. 7055.

100 F.2d 690 (1938)

Harry H. WOODRING, Secretary of War, and H. A. A. Smith, General Purchasing Officer and Chief of Washington Office, Panama Canal, Appellants, v. Justus S. WARDELL, Receiver, District National Bank of Washington, D. C., Appellee.

United States Court of Appeals for the District of Columbia.

Decided October 31, 1938.

Attorney(s) appearing for the Case

Leslie C. Garnett, Sp. Asst. to Atty. Gen., and David A. Pine, U. S. Atty., and H. L. Underwood, Asst. U. S. Atty., both of Washington, D. C., for appellants.

George P. Barse, Charles E. Wainwright, and Brice Clagett, all of Washington, D. C., for appellee.

Before GRONER, C. J., and MILLER and VINSON, JJ.

GRONER, C. J.

This is an appeal from a decree against appellants directing payment of the proceeds of certain bonds of the insolvent District National Bank which had been pledged by the bank to secure deposits of Canal Zone money-order funds. The bill alleges that the pledge was invalid, that the sale of the bonds and collection of the proceeds were illegal, and that such proceeds are a trust fund for the benefit of the creditors of the bank and as such recoverable...

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