Knight

This is an appeal from an order of the District Court for the Western District of *35 Washington, Northern Division, confirming an order of the referee in bankruptcy enjoining the Seattle Curb Exchange from proceeding against the trustee in bankruptcy in an action in the state court then pending, and also directing the referee to proceed and to determine the rights of the Seattle Curb Exchange, hereinafter called the exchange, to the proceeds derived from the sale of a seat of the bankrupt therein. It appears from the findings of the referee that the bankrupt, George S. Cochran, was a member of the Seattle Curb Exchange; that one R. L. Phippeny testified that on August 30,1929, shortly prior to the filing of the voluntary petition in bankruptcy on September 3, 1929, the bankrupt traded his membership in said exchange to Phippeny for mining stock worth about $3,200, and as evidence thereof indorsed his name upon the certificate of membership in said exchange, and also made a written assignment thereof. Cochran was adjudged bankrupt on September 4, 1929. On September 4 Phippeny applied to the exchange for transfer of the membership to him, but this application was refused. The…