Lober v. Canadian Pac. Ry. Co.

RIDDICK, Circuit Judge.

The question on this appeal is whether the claim of appellant as a holder of five per cent first mortgage bonds of the Duluth, South Shore & Atlantic Railway Company, now undergoing reorganization under section 77 of the Bankruptcy Act, 11 U.S.C.A. § 205, is entitled to priority, in any plan for reorganization ultimately approved, over the claim of the Canadian Pacific Railway Company as a holder of four per cent bonds of the debtor issued under a subsequent consolidated mortgage.

The South Shore was organized in the years 1886-1887 by a syndicate, which acquired by…