Liberty Mut. Ins. v. Johnson Shipyards Corp.

KNOX, District Judge.

This action was begun as an ordinary conservation suit in equity. Receivers of the defendant were appointed, and they have now all but wound up the estate. As in many cases, the hopes of creditors that the assets of the defendant, when liquidated would be sufficient to pay their claims in full, have not been realized. *953After the payment of lien claims and administration expenses, the general creditors will receive approximately 20 per centum of the face amount of their claims.

One of the claimants is the United States government. Proof has been made that the defendant for…