John Schaap & Sons Drug Co. v. Rone

WALTER H. SANBORN, Circuit Judge.

In September, 1922, Charles P. Morehead was adjudged a bankrupt. He then owed John Sehaap & Sons Drug Company $1,532.31, and this indebtedness was secured by a chattel mortgage to it on Morehead’s fixtures in his drug store. Pursuant to an order of the District Court, the trustee in bankruptcy sold at public auction, after due notice, the fixtures of the bankrupt for $1,500 to the John Sehaap & Sons Drug Company, subject to Morehead’s mortgage to it for the $1,532.31. On the day of the sale, November 15, 1922, the drug company paid to the trustee the $1,-500…