In re Dismal Swamp Contracting Co.

WADDILL, District Judge.

The referee was of the opinion that neither of the above grounds of objection made to the allowance of this claim were well taken, and therefore overruled the same, and held that the deed constituted a lien, entitling the holder of the debt therein secured to a priority of payment over all debts of the bankrupt contracted from and after the date of its recordation.

The court will first consider the second objection made to this deed, namely, that it was void under the bankruptcy act, in that it created a preference in favor of the beneficiary therein. The deed was…