In re National Motorship Corp.

MANTON, Circuit Judge,

In a suit in admiralty for collision damages against the debtor’s vessel Detroiter, brought by the Arundel Corporation, owner of the drill boat East River, the appellant on January 12, 1932, gave a stipulation for value up to $35,000 and thus procured the release of the debtor’s vessel which had been seized. The United States held a preferred mortgage on the Detroiter at that time which provided that insurance taken out by the debtor should be made payable to the United States Shipping Board for distribution to the United States of America, mortgagee, and/or the General…