In Re S. T. Foods, Inc.

FREDERICK van PELT BRYAN, District Judge.

The principal issue raised by the trustee’s petition to review is the same as that in Matter of Airline-Arista Printing Corporation, Bankrupt, 156 F.Supp. 403 (S.D.N.Y.1957), aff’d per curiam 2 Cir., 267 F.2d 333. In that case I held that federal income and social security taxes withheld by a debtor in possession from the salaries of its employees in a superseded proceeding for arrangement constituted a trust res in favor of the United States and were to be paid prior to costs and expenses of administration incurred either in the arrangement proceeding…