government on the assets involved is superior to his mortgage. In fact an arrangement was entered into between the Delaware corporation and the government by which the government would be paid.
All indebtedness of the original Pennsylvania Paper Corporation of America other than to wit $160,000 still due the government as that indebtedness existed when the Delaware Paper Corporation of America took over in 1947, has been paid. The present indebtedness of the Delaware corporation came into existence in the years 1951 and 1952four years after the events with which this court is concerned took place, and under the management of the Delaware corporation. Regardless of this fact plaintiffs' counsel has made a valiant attempt to subject all assets of the Pennsylvania corporation as they came to the Delawarethe same name as the original Cheboygan Company to wit Paper Corporation of America. In carrying out the deal, assets of the Pennsylvania Paper Company were turned over to the Delaware Company and Delaware issued 100 shares of stock which it turned over to Juvenile in exchange for the 1,500 shares of the Pennsylvania Paper Company which had been sold to Juvenile by the Pennsylvania corporation owners.[2] Finally and as security to Lesavoy and Landy, Delaware gave them a mortgage covering all assets of the Delaware corporation in the amount of $3,150,000. The original sales price was $3,350,000 but the vendors had been paid $200,000 on account when the deal was consummated and at the end of December were given another $500,000.
There is no denying that the intention