Dickinson

. The appeal is from an order in an equity receivership suit disallowing a claim and granting a petition of the receiver to pay a dividend.

On March 29, 1933, Universal Service Stations, Inc., a Connecticut corporation, filed in the District Court a complaint alleging a past due indebtedness of the Electric Corporation, defendant (a California concern), in the sum of $32,459.70. The bill alleged that the defendant was indebted to numerous other creditors, had insufficient funds in hand to meet its obligations, and ‘could not raise funds with which to pay them; that it owed unsecured debts in the sum of approximately $57,000 and a secured obligation of $16,000; and that it had assets reasonably worth $138,000, of *755 which approximately one-third consisted of a stock of merchandise. It was averred that unless a receiver be appointed the assets would have to be liquidated on an unfavorable market and sacrificed, to the very material loss of creditors, but that through receivership its assets could be preserved and by the continuation of the business through the receiver a substantial reduction could be had in its rental, its debts could be paid in full and a substantial part of…