Stepp

This is an appeal and a cross-appeal in an equity receivership proceeding from a District Court order entitled: “Order Confirming Third Report of Ed. McAdams as Receiver for the Elmer Company, Ltd., Dismissing Order to Show Cause of Howard W. Stepp and for Distribution to Howard W. Stepp and Guaranty Liquidating Corporation” [hereinafter called the Order of May 14, 1937]. The order was made in two proceedings, which were heard concurrently, the Court making one order embracing its decision in both matters.

In order to fully understand the problems presented by these appeals it is necessary to review certain prior proceedings in the receivership as they are disclosed by the agreed statement of the case. It is to be noted that all of the orders hereinafter mentioned were made and entered by the same Judge of the District 'Court.

On January 25, 1936 the District Court made an order allowing Howard W. Stepp (hereinafter referred to as Stepp) a general (and not a preferred) claim against the receivership estate in the amount of $35,361.38. The decretal portion of the order was cast in the following language:

The claim of Guaranty Liquidating Corporation (hereinafter referred to as…