In re United States Express

*586MEMORANDUM OPINION AND ORDER

GEORGE B. HARRIS, Chief Judge.

This matter is here on petition for review of a decision of the Referee in Bankruptcy. The question is whether or not petitioner is entitled to the status of a secured creditor in the bankruptcy proceedings. This court holds that he is so entitled and therefore reverses the decision of the Referee.

Petitioner, Garden City Transportation Co., Ltd. and the bankrupt, United States Express, Inc., are both highway common carriers regulated by the California Public Utilities Commission. In February 1958, they entered into an agreement whereby…