In re Illinois Art Industries, Inc.

RAYMOND, District Judge.

This matter is before the court upon petition for review of an order of the referee in bankruptcy allowing four claims of the Collector of Internal Revenue for Social Security taxes as priority tax claims. In reliance upon the decision of this court in the Matter of Royal Wilhelm Furniture Company, 23 F.Supp. 993, filed May 20, 1938, he refused to sustain the objections of the trustee which urged that 90% of the taxes sought to be enforced constituted a penalty under section 57j of the Bankruptcy Act, 11 U.S.C.A. § 93(j).

The facts are sufficiently stated in the…