In re Marshall E. Smith & Bro., Inc.

BARD, District Judge.

This case arises on a petition for review of an order of the Referee denying priorities to petitioners’ wage claims and allowing them, as general claims only.

The bankrupt had been in business for many years. In 1931, operations being unprofitable and the indebtedness large, the enterprise was turned over to Moskowitz & Herbach, who received an assignment of the stock of the Company. The claim-' ants herein, Frank Houghkirk, Ludwig O. Liese and Samuel S. Polin, had been employees of the bankrupt both prior and subsequent to this transfer. In October, 1934, Moskowitz &…