In Re Jersey Materials Co.

FORMAN, District Judge.

In 1933 the Jersey Materials Company, the bankrupt, was formed by D. Herbert Schweyer, who became its president, and Israel Krohn, its secretary and treasurer. It dealt in marble chips, talc, crayon and chalk, owning a quarry located at Phillips-burg, New Jersey.

It bought its property from John Wagner Green and Henry Green, giving in part payment a real estate mortgage in the sum of $3,500, dated July 1, 1933, payable in four years. The mortgage was not paid at maturity and, in fact, the bankrupt ceased to pay interest which is due from July 1, 1936, at the rate of six…