United States v. Industrial Commission

SPARKS, Circuit Judge.

The Government appeals from a judgment of the District Court awarding priority to a claim of the Wisconsin Industrial Commission over its claim for income taxes due from a bankrupt taxpayer. The case is presented to us on an agreed statement of facts.

The Northwest Wood Products Company was adjudicated a bankrupt after failure of an attempt at voluntary arrangement and composition under Chapter XI of the Bankruptcy Act. Order of distribution was entered on May 10, 1947. The present controversy arises over the disposition of a balance of $1,280 remaining after distribution…