Rothschild v. Jefferson Hotel Co.

HULEN, District Judge.

I. Defendant, Jefferson Hotel Company,1 in 1934, as the result of reorganization proceedings, issued $2,978,000 of an authorized bond issue of $3,025,000, and executed its mortgage deed of trust to secure same.2 The amount of $222,500 in bonds has been retired since April 1, 1934, leaving now outstanding $2,756,000 of such bonds, of which $147,000 are now held in the treasury of the corporation uncancelled.. From April 1, 1934, to December 31, 1943, interest has accrued and remains unpaid on said bonds in the sum of “about $809,875.00” not including premium.

In December,…