United States v. California

This is an appeal by the United States from an order of the District Court con *981 firming an order of a referee in bankruptcy. The order, which was made after hearing upon objections filed by the Trustee in Bankruptcy, affected ten separate claims. By the order eight claims were allowed in full; one was allowed in part; and one was disallowed. The order established the priority of the claims which were allowed. They were grouped as follows: (a) “prior lien claims for taxes” (b) “expenses of administration” (c) the claim of the United States for taxes “allowed as prior claim under the provisions of Section 64b, subsection 6 of the Bankruptcy Act of 1898 as amended [in 1926, 11 U.S.C.A. § 104 (b) (6) ] * * * ” and (d) the claim of one Robert Gray “allowed as a prior claim * * * under the provisions of section 64b subsection 7 of the Bankruptcy Act of 1898 as amended”. The trustee was directed by the order to pay to the United States all sums remaining in his possession after the payment of “Hen claims” and “expenses of administration”.

The claims designated “lien claims” were five in number: (1) the claim of the State of California for $519.32 for taxes and penalties payable…