Empire Trust Co. v. United States Trust Co.

COLLET, Circuit Judge.

Four appeals were taken from an order of the District Court fixing the priority rights of claimants in Reorganization Proceedings relating to the Wisconsin Central Railway under Section 77 of the Bankruptcy Act. All four appeals were presented on the same record, were argued together, and will be determined by this opinion.

On July 13, 1899, a mortgage designated as the First General Mortgage, securing bonds issued thereunder, was placed on the debtor railway. This mortgage contained certain provisions by which after-acquired property and the income of the railway were…