First Trust & Deposit Co. v. Receiver of Salt Springs National Bank

HINCKS, Circuit Judge.

This appeal is brought by the First Trust and Deposit Company, a creditor of the bankrupt Onondaga Litholite Company, from an order of the Bankruptcy Court subordinating its claim to those of all other creditors. The trustee in bankruptcy and certain creditors are the appellees.

The facts are as follows: the appellant had loaned the Onondaga, prior to its adjudication, a substantial sum much needed by Onondaga as working capital. Thereafter, when Onondaga was unable to meet this and other obligations, the appellant and another bank became vot*673ing trustees of Onondaga. The…