In the Matter of Etc., Inc., Bankrupt. The Detroit Bank and Trust Company and Anaconda Wire and Cable Company v. George F. Labour, Trustee

LEVIN, District Judge.

This is an appeal from a holding, 198 F.Supp. 53, that a certain chattel mortgage is not valid as against the trustee in bankruptcy. A brief outline of the relevant facts is as follows:

In 1954, Anaconda Wire and Cable Company agreed to lend ETC., Inc.. the bankrupt, amounts not exceeding $150,000. As security, the bankrupt executed a chattel mortgage to the appellants, the Detroit Bank and Trust Company designated in the mortgage as trustee for Anaconda Wire and Cable Company as beneficiary. This mortgage covered personal property in Berrien County, Michigan, and was…