Davis v. Michigan Trust Co.

MACK, Circuit Judge.

This is an appeal from the decree of the District Court denying priority to the claim filed by the Director General for freight, demurrage, and switching charges, in the distribution of the assets in the hands of the receiver in equity of the Rathbone Manufacturing Company.

The receiver had been appointed, with the consent of the company, on the usual creditor’s bill, alleging the inability of the company to pay its liabilities in due course. The bill did not allege insolvency in the bankruptcy sense; on the contrary, it alleged, on information and belief, that the going…