Herbert L. Markow, Successor to J. Mark Stanley, as Trustee of Florida Carolina Lumber Company, Bankrupt v. Charles H. Alcock

BENJAMIN C. DAWKINS, Jr.,

District Judge:

This is the third, and hopefully the final, occasion this matter has come before us for decision. 1 The action is brought by the Trustee in Bankruptcy of the Florida Carolina Lumber Company (Florida) in which, pursuant to § 70(e) of the Bankruptcy Act, he claims a mortgage transaction in favor of the defendant banks 2 was in fraud of general creditors of the bankrupt. The principal factual contention made by plaintiff is that the bankrupt owned, in law or in equity, the assets of the Southern Creosoted Lumber Company (Southern) which were mortgaged to…