United States v. Butterworth-Judson Corp.

April 22, 1922, respondent, a New York corporation, was insolvent within the meaning of R. S. § 3466, and as defined by the Bankruptcy Act. Its debts amounted to approximately $3,000,000, and included $1,154,450 due to .the United States. The value of its assets was not in excess of $1,500,000. On that day, the Hay Foundry and Iron Works, a simple contract creditor, on behalf of itself and other creditors, brought suit against the respondent in the District Court for the Southern District of New York. Among the facts alleged are these: Respondent owed plaintiff $7,988.43 for labor and…