Opinion
No. 3415.
December 14, 1925.
Appeal from the District Court of the United States for the Western District of Pennsylvania; Robert M. Gibson, Judge.
Appeal of the County National Bank from the District Court of the United States for the Western District of Pennsylvania, authorizing the issuance of receivers' certificates and the expenditure of the proceeds from the sale thereof.
Moorhead Knox, of Pittsburgh, Pa., and Hartswick, Arnold Platt, J.P. O'Laughlin, and A.H. Woodward, all of Clearfield, Pa., for appellant.
Reed, Smith, Shaw McClay, of Pittsburgh, Pa., Wolf, Patterson, Block Schorr, of Philadelphia, Pa., A.M. Liveright, of Clearfield, Pa., and Sidney E. Smith, of Philadelphia, Pa., for appellees.
Before BUFFINGTON, WOOLLEY, and DAVIS, Circuit Judges.
The exigencies of this receivership call for such a speedy decision of this case that an extended discussion of its issues is impossible. We shall only say that in our opinion the money to be raised on receivers' certificates and to be applied in part to the discharge of the corporation's past-due indebtedness to service instructors and to many thousand widely scattered "knitters," whereby the recovery of many thousand dollars worth of the corporation's yarn and the enhancement of the value of certain of its assets are made possible, will not, in the peculiar character of the business, amount in law to preferential payment of the claims of unsecured creditors, but rather that such payment is a necessarily precedent factor in the conservation of the corporation's property.
The decree of the District Court is affirmed.