Howard

This is an appeal by the receiver of the State Company from an order of the District Court allowing the claim of the Hancock Oil Company in the sum of $121,011.69, with interest, as a general claim against the receivership estate.

The claim arose out of the following transactions: On or about March 7, 1928, the State Company and the Richfield Oil Company entered into a written agreement, the former to sell and the latter to buy, during a period of three years from March 7, 1928, and continuing thereafter subject to cancellation by either on six months’ notice, the total amount, up to a certain maximum, of crude petroleum oil of specified gravity and temperature, owned by the State Company at its dehydrating plant at the Long Beach oil field. The agreed price for oil of the specified gravity was to be 10 cents per barrel higher than the prices publicly offered by the Standard Oil Company of California for oil of like gravity and quality. On November 7,1928, while this contract was in force, the Hancock Oil Company and the State Company agreed in writing, the former to sell and deliver, and the latter to receive and pay for, all the surplus oil, up to a certain amount, owned by…