McCune

Appeals have been taken from orders denying a petition to vacate an adjudication in bankruptcy, and granting a petition to intervene.

On May 9, 1938, the First National Trust and Savings Bank of Santa Barbara, hereafter called the national bank, one Hoefer, one Davidson and his wife, filed a petition in the court below praying that Mortgage Securities, Inc., a California corporation, hereafter called the bankrupt, be adjudged bankrupt. The petition alleged the insolvency of the bankrupt, indebtedness of the bankrupt in excess of $1,000, and acts of bankruptcy. No question is raised as to these allegations, but the controversy relates to the number of creditors filing the petition.

The petition alleged that bankrupt was indebted to the national bank for the principal amount of $50,000 as evidenced by promissory notes, and that Hoefer, Davidson and the latter’s wife, were creditors of the bankrupt because of facts related in the petition. These facts were that the petitioners last named were stockholders of the bankrupt and as such were liable for the debts of the bankrupt in a specified proportion; that prior to October 15, 1936 “certain creditors” of bankrupt demanded and…