Dictaphone Sales Corp. v. Powell

McCLINTIC, District Judge.

Receivers were appointed for the Seaboard Air Line Railway Company on the 23d day of December, 1930, by the District Court of the Eastern District of Virginia in an equity cause therein pending.

There is, in the adjudged and controlling cases, a well-known and long-established rule called the “six-months rule,” under which certain classes of claims against a railway company which arose for purchases of equipment during the period of six months prior to the appointment of receivers are required to be paid out of current earnings. However, there are many exceptions to…