KELBY v. MANUFACTURERS TRUST CO.

No. 201, Docket 20501.

162 F.2d 350 (1947)

KELBY et al. v. MANUFACTURERS TRUST CO. et al.

Circuit Court of Appeals, Second Circuit.

June 12, 1947.


Attorney(s) appearing for the Case

Ross W. Lynn, of New York City, for appellant Lulu R. Kelby, trustee in bankruptcy of New York Investors, Inc.

Irving L. Schanzer, of New York City (Hooker, Alley & Duncan and James B. Alley, all of New York City, on the brief), for appellant Realty Associates Securities Corp., debtor.

Perry A. Hull, of New York City (Newman & Bisco, of New York City, on the brief), for appellees Manufacturers Trust Co., indenture trustee, and Parties in the Armed Services.

Jack L. Rappaport, of New York City (Lewis, Marks & Kanter and Lloyd B. Kanter, all of Brooklyn, N. Y., and Julius Silver, of New York City, on the brief), for appellee Bondholders' Protective Committee.

Percival E. Jackson and Theodore N. Tarlau, both of New York City, for appellee Vanneck Realty Corp.

George Zolotar, Sp. Counsel, Securities and Exchange Commission, of New York City (Roger S. Foster, Sol., Robert S. Rubin, Asso. Sol., and Alfred Hill, all of Philadelphia, Pa., and Ezra Weiss and Kiva Berke, both of New York City, on the brief), for appellee Securities & Exchange Commission.

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


CLARK, Circuit Judge.

This appeal presents two quite distinct questions. The first, raised by Kelby as trustee of the bankrupt New York Investors, Inc., is whether she may recover by way of subrogation for her estate a part of certain payments made to bondholders of the debtor, Realty Associates Securities Corporation, on the guaranty of such bonds by the bankrupt. The second, raised by the debtor and its sole stockholder...

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