KIRKPATRICK, District Judge.
Reading Hotel Corporation, which owns and operates a large, modern hotel in the city of Reading, filed its petition for reorganization under section 77B of the Bankruptcy Act (11 U.S.C.A. § 207), on September 6, 1934. The real estate was subject to two mortgages — first and second — securing bond issues of $900,000 and $800,000, respectively. Interest was in default, and taxes were due and unpaid. Foreclosure proceedings...
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