Fonda, Johnstown & Gloversville Railroad v. New York Trust Co.

There are two mortgages outstanding covering the same parts of plaintiff's property. There is also outstanding a third mortgage covering all of its properties, the amount of the lien of the first mortgage being $500,000, that of the second being $800,000, and the amount of outstanding bonds under the third being $5,700,000. The defendant is acting as trustee under each of said mortgages.

In 1925, and after the giving of said mortgages, a portion of the property was taken by condemnation for the creation of Sacandaga reservoir, and compensation therefor in the sum of $1,727,696.55 was received…