Dunn

The assets of the estate in bankruptcy consisted wholly of the property of the bankrupt, who, as an individual, had been engaged in business. The appellant presented a claim against the estate, based upon the liability of the bankrupt as a stockholder in a certain corporation organized under the laws of the state of California. The claim was disallowed by the referee, on the ground that it was in the nature of a partnership debt of the bankrupt, and controlled by section 5f of the Bankruptcy Act (Comp. St. § 9589), which provides: “The net proceeds of the partnership property shall be appropriated to the payment of the partnership debts, and the net proceeds of the individual estate of each partner to the payment of his individual debts.” That section and section 65 (Comp. St. § 9649), which provides that dividends of an equal per centum shall be declared and paid upon all allowed claims, except such as have priority, or are secured, are the only provisions of the Bankruptcy Act which control the decision of the question here presented. The referee admitted that the question was one of first impression, and held that, inasmuch as the liability of a stockholder in a California…