S. B. Huffman, Trustee in Bankruptcy of Charles Manfre Transportation Co., Bankrupt v. United States

The dispute here involves whether money paid to the bankrupt Manfre's trustee in bankruptcy by a company called Utility Trailer Sales must be turned over to the United States for its ubiquitous tax claim or whether the trustee may subordinate the tax claim to costs of administration and wage claims. The referee, and the district court on review, held that the director of internal revenue must take the entire sum involved which is $2,309.49.

Prior to bankruptcy, we are told Utility Trailer Sales had “repossessed” four trucks apparently belonging to Manfre. It is not clear whether the “repossession” was under a chattel mortgage or a conditional sales contract. After “repossession,” we do not know what was done next. It would appear that in some way the bankrupt, prior to the adjudication, was disputing the repossession or some facet of it. The trustee continued the same contentions or made others. We are told that the trustee brought a proceeding “against Utility Trailer Sales in the bankruptcy court below and after a hearing before the referee was successful in achieving a compromise of the matter.” The parties attempt to tell us in a scanty way what the “matter” before the…