EMPIRE TRUST CO. v. UNITED STATES TRUST CO.

Nos. 13571-13574.

165 F.2d 829 (1948)

EMPIRE TRUST CO. et al. v. UNITED STATES TRUST CO. OF NEW YORK and three other cases.

Circuit Court of Appeals, Eighth Circuit.

January 26, 1948.


Attorney(s) appearing for the Case

Thomas P. Helmey, of Minneapolis, Minn., for Empire Trust Co. and Henry A. Bultman, as Trustees under Wisconsin Cent. Ry. Co. First and Refunding Mortgage.

Henry S. Mitchell, of Minneapolis, Minn., for Empire Trust Co. and Henry A. Bultman, as Trustees under Wisconsin Cent. Ry. Co. First and Refunding Mortgage, and Canadian Pac. Ry. Co.

George W. Morgan, of St. Paul, Minn., and Cornelius W. Wickersham, of New York City, for U. S. Trust Co. of New York and Williamson Pell, as Trustees under Wisconsin Cent. Ry. Co. First General Mortgage, and Joseph R. Warner, and others constituting a Protective Committee for the First General Mortgage Bondholders.

Henry S. Mitchell, of Minneapolis, Minn., for Canadian Pac. Ry. Co. and Olin, Murphy & Redmond, of New York City, and Stinchfield, Mackall, Crounse & Moore, of Minneapolis, Minn. (Leonard H. Murray and Thomas P. Helmey, both of Minneapolis, Minn., of counsel), for Empire Trust Co. and Henry A. Bultman, as Trustees under Wisconsin Cent. Ry. Co. First and Refunding Mortgage.

George W. Morgan, of St. Paul, Minn., M'Cready Sykes, of New York City, Morgan, Chase, Headley & Hoshour, of St. Paul, Minn., and Stewart & Shearer, of New York City, for U. S. Trust Co. of New York and Williamson Pell, as Trustees under Wisconsin Cent. Ry. Co. First General Mortgage; and Cornelius W. Wickersham, Edwin Martenet, and Cadwalader, Wickersham & Taft, all of New York City, for Joseph R. Warner, and others, constituting a Protective Committee for the First General Mortgage Bondholders.

Cravath, Swaine & Moore, of New York City, Frank A. Janes, of Minneapolis, Minn., Frank H. Detweiler and Frank J. Pohl, both of New York City, for Chemical Bank & Trust Co., and others, as Trustees under Wisconsin Cent. Ry. Co. Superior and Duluth Division and Terminal First Mortgage.

Mudge, Stern, Williams & Tucker and A. Albert Minton, all of New York City, Bergmann Richards, of Minneapolis, Minn., and Paul Duryea Miller, of New York City, for Howard H. Hubbard, and others, as a Protective Committee for the Holders of Wisconsin Cent. Ry. Co. Superior and Duluth Division and Terminal First Mortgage.

Before SANBORN, WOODROUGH, and COLLET, Circuit Judges.


COLLET, Circuit Judge.

Four appeals were taken from an order of the District Court fixing the priority rights of claimants in Reorganization Proceedings relating to the Wisconsin Central Railway under Section 77 of the Bankruptcy Act. All four appeals were presented on the same record, were argued together, and will be determined by this opinion.

On July 13, 1899, a mortgage designated as the First General Mortgage, securing bonds issued thereunder, was placed...

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