Fidelity-Philadelphia Trust Co. v. Philadelphia Transportation Co.

Opinion by

Me. Justice Cohen,

Fidelity-Philadelphia Trust Company (Trustee), appellee, brought this action in assumpsit in its capacity as trustee of the mortgage bondholders under a Trust Indenture securing the Consolidated Mortgage 3%-6% bond of Philadelphia Transportation Company (PTC), the defendant-appellant. Under this Indenture, PTC was to pay a fixed 3% interest per annum and up to 3% additional income-interest to the extent that “net income,” as defined in the Indenture, was sufficient.

Under the Indenture the Board of Directors of PTC was to apply “accepted principles of accounting” to…