In re Jim Clay Tobacco Co.

ORDER

EDENFIELD, District Judge.

This action in bankruptcy is presently before the court on the trustee’s second petition for review of the Referee’s order.

The claimant in the case, The Travelers Indemnity Company, issued a bond to the State of Georgia which guaranteed the payment of up to $650,000 in cigarette taxes to the State. The Jim Clay Tobacco Company, Inc., a licensed tobacco distributor, was obligated under the tax collection scheme outlined in the Georgia Cigar and Cigarette Tax Act, Ga.Laws, 1955, p. 268, as amended, to purchase from the State cigarette tax stamps, which were then…