Northern Bond & Mortgage Co. v. King

EVAN A. EVANS, Circuit Judge.

Appellant filed its claim against the bankrupt estate of F. MacKinnon Manufacturing Company for $36,500, plus interest, and sought its allowance, and also its prior payment, out of a fund realized from the sale of a part of the bankrupt’s assets upon which it asserted a first mortgage lien. The referee allowed the claim in full, but denied its preference. The District Court approved this ruling.

The essential facts are few and, save for three issues, are not involved in doubt or dispute.

Bankrupt, a Wisconsin manufacturing company, was, in 1923, in need of…