Seifried v. Chatz

LINDLEY, District Judge.

Appellant, owner of bonds in the amount of $132,800, 66.10% of the outstanding-junior issue of the debtor corporation, appeals from an order of the District Court allowing to the trustee in reorganization proceedings and his attorney, fees and stenographer’s expenses against the rental income of the property involved in the proceedings, all of which, including the income, was mortgaged to secure the bonds. The contention is that it was error to direct that such general administrative fees be paid out of funds covered by the mortgage. Appellant insists further that if…