Warner

Appellant, as a trustee in bankruptcy, has appealed from an order confirming an order of the referee which overruled appellant’s objections to claims filed against the bankrupt estate by appellees.

The stipulation of facts presents a question of interpretation of the by-laws of the bankrupt corporation.

The bankrupt, Puget Sound Quality Stores, was incorporated on the 10th day of March, 1930, as a co-operative association under the laws of the state of Washington for the purpose of dealing in groceries and merchandise upon a nonprofit co-operative basis for the benefit of its members or shareholders. The capital stock consisted of $500 divided into 500 shares of the par value of $1 per share.

The by-laws, adopted at the first meeting of incorporators and trustees on March 10, 1930, and approved by all of the member shareholders, provided in article XV, as follows :

“Sec. 1. One percent (1%) shall be added to all statements for the purpose of creating a credit reserve fund. Said one percent (1%) shall be credited to each member’s reserve fund account and shall be returnable with interest upon the member ceasing to be a member of the Association; less, however, a pro rata…