Feder v. John Engelhorn & Sons

AUGUSTUS N. HAND, Circuit Judge.

John Engelhorn & Sons, a creditor (hereinafter referred to as “Engelhorn”) filed a claim in the amount of $10,380.96 for meats that it had sold and delivered to the bankrupt George W. Comer, Inc., in No vember and December of 1950. In January 1951 because Engelhorn had become concerned over this debt, two of the bankrupt’s officers, George W. Comer and Benjamin C. Raster, had assigned their 80% interest in 'a bond and second mortgage to Engel-horn as collateral security to guarantee payment of the obligation. George W. Comer, Inc., while solvent, had executed…