Reconstruction Finance Corp. v. New Castle Terminal Co.

CHESNUT, District Judge.

The controversy in this case is between the holder of a statutory preferred ship mortgage (see Title 46, U.S.Code, § 911 et seq., 46 U.S.C.A. § 911 et seq.) and preferred maritime liens as defined in section 953 of Title 46, U.S.Code, 46 U.S.C.A. § 953.

Under date of May 25, 1938 the New Castle Terminal Company made a preferred ship mortgage to the Reconstruction Finance Corporation as security for a loan of eighty thousand dollars ($80,000), covering the vessels named the “Eastern Shore”, “Lexington” and “Piankatank”. The mortgage was duly executed, delivered, recorded…