In Re Zaepfel & Russell, Inc.

MILLER, District Judge.

This matter is before the Court on various petitions to review the order of the Referee entered on March 12th, 1941, which sustained the claims of the New York Casualty Company and the Trinity Universal Insurance Company, and overruled the claims of the First State Bank of LaGrange, Kentucky, the Farmers State Bank of Augusta, Kentucky, and the First Kentucky Fire Insurance Company.

The question of priority between the claims of the surety companies and the claims of the banks depends upon whether we follow the rule adopted by the Federal Courts or the rule announced by…