Pearson Mfg. Co. v. Pittsburgh Steamboat Co.

Opinion by

Mr. Justice Maxey,

The question before us is: What parties are entitled to insurance money paid to the receiver of an insolvent corporation for the fire loss of the corporation’s principal asset, a certain excursion boat called “Greater Pittsburgh?” The respective claimants are the corporation’s general creditors and the holders of a mortgage on the vessel.

Defendant company, incorporated in 1929, conducted a carrying trade on rivers in the vicinity of Pittsburgh. Its business was unprofitable. Within a year of incorporation it became heavily indebted to some of its officers and…