Monson

On September 26, 1926, the Groceteria Stores Company was adjudged a bankrupt. It made an offer of composition, which was confirmed by the court, to pay 50 per cent, of the claims allowed. The appellant filed a proof of claim for $2,697.64. The appellee having received from the bankrupt an order on the court for all of the fund on deposit for the composition not paid out on approved claims, filed objections to the allowance of the appellant’s claim. The referee sustained the objections, and his ruling was sustained by the court below.

In 1918 the Groceteria Stores Company paid a federal income tax of about $2,600. On February 15, 1924, the payment was held insufficient, and demand was made for an additional sum of approximately $4,900. The company was unable to meet the payment. Walter A. Monson, its president, proposed to consolidate the return of that company with that of the Monson Investment Company, both corporations belonging substantially to the same people, and thereby to relieve the former company from the payment of the increased income tax. The appellant produced testimony tending to show that there was an agreement between him and J. L. Mackeever, a director and…