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CHEMICAL BANK NEW YORK TRUST CO. v. STEAMSHIP WESTHAMPTON

Nos. 9637, 9638.

358 F.2d 574 (1965)

CHEMICAL BANK NEW YORK TRUST COMPANY, Trustee, Mortgagee, Appellant, v. STEAMSHIP WESTHAMPTON (formerly Steamship Montauk Point), her engines, boilers, etc., Appellee.

United States Court of Appeals Fourth Circuit.

Decided April 5, 1965.

Rehearing Denied May 3, 1966.

Attorney(s) appearing for the Case

William A. Grimes, Baltimore, Md. (Ober, Williams & Grimes, Baltimore, Md., Thatcher, Proffitt, Prizer, Crawley & Wood, Edward C. Kalaidjian, Cravath, Swaine & Moore, John W. Barnum, Robert Rosenman, and John C. Hancock, New York City, on brief), for appellant.

William R. Dorsey, III, Baltimore, Md. (Foley & Grainger, John J. Foley, New York City, David R. Owen, Semmes, Bowen & Semmes, Baltimore, Md., Boal, McQuade & Fitzpatrick, and Arthur M. Boal, Jr., New York City, on brief), for appellee Caltex, etc.

Solomon Kaplan, Baltimore, Md. (Sol C. Berenholtz, Baltimore, Md., on brief), for appellee Seafarers Vacation Plan.

Isaac N. P. Stokes, New York City (Webster, Sheffield, Fleischmann, Hitchcock & Chrystie, New York City, Niles, Barton, Gans & Markell, and Robert H. Williams, Jr., Baltimore, Md., on brief), for trustees in bankruptcy.

Before SOBELOFF, Chief Judge, and HAYNSWORTH and J. SPENCER BELL, Circuit Judges.

Rehearing En Banc Denied May 3, 1966.

SOBELOFF, Chief Judge.

These appeals are from a decree that the first preferred mortgage and indenture dated August 6, 1962, from Seatrade Corporation to Chemical Bank New York Trust Company, is not a preferred mortgage under section 922 of the Ship Mortgage Act of 1920. 41 Stat. 1000 (1920), as amended, 46 U.S.C.A. § 922 (Supp. V, 1964).

Seatrade contracted with Struelcken Shipyard of Hamburg, Germany, during...

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