Flockhart Foundry Co. v. Cox Automatic Pipe Bending Co.

Backbs, Y. C.

The Coz Automatic Pipe Bending Company was declared insolvent and the receiver sold its assets free and discharged *383of the lien of two chattel mortgages given by the company to Messrs. Cronan, Cox and Lemke for $10,000 and $15,000, respectively. The mortgagees, Cronan and Lemke, now petition the court to direct the receiver to pay to them the mortgage debts out of the proceeds of sale. The receiver resists the application, setting up that the mortgages were invalid because (a) the affidavits annexed do not meet the requirements of the statute; (b) that the mortgages are in fraud…