In re Hereford Oil Co.

ATWELL, District Judge.

The referee required a deposit of $11,000 by the bankrupt to make good a composition offer to pay unsecured creditors 20 per cent., and to pay prior claims in full. The offer contained these words, “does hereby offer a composition of twenty per cent, of the claims of its creditors allowed, or to be allowed, except those entitled to priority in this proceeding.”

That language can mean but one thing, namely, that the bankrupt offered to pay all priorities in full and all other creditors 20 per cent. For that purpose $11,000 were made available. Section 3466, R. S. U. S.…