New York Trust Co. v. Island Oil & Transport Corp.

KNOX, District Judge.

It is my opinion that the franchise taxes assessed by the commonwealth of Virginia against Island Oil & Transport Corporation for the years 1924 and 1925 are entitled to priority of payment over the claims of general creditors. Were this estate being administered in a federal court in Virginia, there is no doubt that the taxes would be recognized for what the laws of that state say they are, and would accordingly be awarded priority. I have some difficulty in seeing why, as a matter of comity and discretion, aside from other consideration, this court, engaged as it is in…