HIRSCH v. WHARTON

No. 317, Docket 29300.

344 F.2d 90 (1965)

Robert S. HIRSCH and Bernard P. Weiner, Appellants, v. Irving L. WHARTON, as Trustee in Reorganization under Chapter X of the Bankruptcy Act, of Continental Vending Machine Corp., Appellee. In the Matter of CONTINENTAL VENDING MACHINE CORP., Debtor.

United States Court of Appeals Second Circuit.

Decided April 6, 1965.


Attorney(s) appearing for the Case

Bernard A. Saslow, New York City, (Lynton, Klein, Opton & Saslow, New York City, on the brief), for appellant Hirsch.

Alvin M. Stein, New York City, (Parker, Chapin & Flattau, New York City, on the brief), for appellant Weiner.

John P. Campbell, New York City, (Curtis, Mallet-Prevost, Colt & Mosle, David W. Kahn, William M. Kahn, Oscar Garcia-Rivera, Michael A. Schwind, Arthur W. Rovine, New York City, and Ernest Stein, on the brief), for appellee.

Before WATERMAN, SMITH and ANDERSON, Circuit Judges.


SMITH, Circuit Judge:

Early in 1963 Continental Vending Machine Corporation, in financial straits, borrowed $995,000 from James Talcott, Inc., a financial institution, and from banks and individuals, as security for which Roth, one of Continental's officers, pledged securities and a mortgage on his house, and Continental also mortgaged some of its vending routes. Appellant Weiner supplied $100,000 of the loan, appellant Hirsch $125,000, through one Schaeffer as "trustee...

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