In re The People

Levy, J.:

This proceeding involves the determination of claims against an insolvent surety company, whose assets were taken over by the State Superintendent of Insurance. Among these claims is one by the city of New York for unpaid taxes. The referee has admitted this as a preferred claim without interest. The amount is trivial but as an important principle is involved, the learned corporation counsel in an able brief has argued that the referee was in error in disallowing this interest. The position taken by counsel for the city is that the seven per cent interest on past due taxes is…