In re Stacy, Wolf Hat Co.

SWAN, Circuit Judge.

Stacy, Wolf Hat Co., Inc., was adjudicated’ a bankrupt upon an involuntary petition filed on September 30, 1936. The present litigation involves the validity of a chattel mortgage in favor of the appellee, Herman Goldstein, dated August 10, 1936, and covering property which was sold by the trustee in bankruptcy, the appellant, under a stipulation that the lien of the mortgage, if valid, should attach to the proceeds of sale. A recital of the circumstances under which the Goldstein mortgage was executed must begin with a prior chattel mortgage to one Di Marco. On January…