BURKE v. MORPHY

No. 197.

109 F.2d 572 (1940)

BURKE v. MORPHY et al.

Circuit Court of Appeals, Second Circuit.

February 13, 1940.


Attorney(s) appearing for the Case

William R. McFeeters, of St. Albans, Vt., and C. E. Weisell and Harold C. Heiss, both of Cleveland, Ohio, for appellant.

Edwin W. Lawrence, of Rutland, Vt., for appellee Luis G. Morphy, receiver of Rutland R. Co.

Larkin, Rathbone & Perry, of New York City (Hersey Egginton, George D. Mumford, and Charles D. Peet, all of New York City, of counsel), for appellee Central Hanover Bank & Trust Co.

Stewart & Shearer, of New York City (George L. Shearer and Francis R. Curry, both of New York City, of counsel), for appellee United States Trust Co. of New York.

Christopher A. Webber, of Rutland, Vt., and Herrick, Smith, Donald & Farley, of Boston, Mass. (Robert Cutler and James F. Preston, Jr., both of Boston, Mass., of counsel), for appellee Old Colony Trust Co.

Before L. HAND, CHASE, and CLARK, Circuit Judges.


CLARK, Circuit Judge.

Rutland Railroad Company is in receivership under a creditor's bill filed in the District Court for the District of Vermont. The receiver has been hard pressed to meet even his operating expenses. For lack of cash, the district judge, on July 12, 1938, ordered the receiver to pay employees only 85 per cent. of their wages after that date, and the employees were granted a first lien on the property for the remainder due them. The 15 per cent....

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