Midland Supply Company, Inc. v. American Drilling Company, Inc., and David L. Dooley, Trustee of American Drilling Company, Inc.

LEWIS, Circuit Judge.

The case at bar arose during the course of reorganization proceedings brought by American Drilling Company, Inc., debtor, under Chapter X of the Bankruptcy Act. The appellant creditor, Midland Supply Company, Inc., filed proof of a secured claim in the amount of $130,601.49. The trustee objected to the claim, asserting that a large portion of the claimed debt had been paid, that the amount of $67,-460.00 was the liability of another corporation, Domestic Oil Corporation, and that transactions between American, Domestic and Midland with regard to the debt amounted to a…