Fisher

As is disclosed by our opinion in the case of Bank of America Nat. Trust & Savings Ass’n v. Fisher, 61 F.(2d) 53 , the receiver of the Lake View Oil & Refining Company sought the advice of the District Court regarding three certain contracts between the oil company and one John H. Fisher. Under the contracts in question, Fisher had advanced to the oil company money which was used to deepen two certain oil wells and to drill another. Under each contract, Fisher was to bo reimbursed from the oil produced; that is, if no oil was produced, Fisher’s money was lost, for he was given no- right to elaim as a general creditor of the oil company. In the event oil was produced, however, Fisher was to receive the net proceeds of the wells until the principal amounts of his advances were returned to him, and thereafter one-half of the net proceeds until he had been paid an additional sum equal to twice the amount of his advances, as bonus compensation. The District Court, following the request of the receiver of the oil company for instructions as to- how to treat the “Fisher contracts,” concluded that the contracts created preferential obligations, and gave to *636 Fisher an interest in the…