American Surety Co. of New York v. Wabash Ry. Co.

STONE, Circuit Judge.

On December 1, 1931, receivers were appointed for the Wabash Railway Company, an appellee here. At that time the Railway had outstanding its Refunding and General Mortgage in which the trustee was the Chase National Bank of the City of New York, another appellee here.

Prior to the above date, Thomas P. Conroy had obtained a judgment for $40,-000 against the Railway in a personal injury action in a State court in Illinois; the Railway had taken an appeal; and had given a supersedeas bond for $45,000 with the American Surety Company of New York, appellant here, as surety…