Sampsell

Wilbur J. Downey filed a voluntary petition in bankruptcy on November 18, 1938. Adjudication followed on November 19, 1938. Appellee was appointed trustee and, as such, took possession of and sold property — a stock of merchandise — belonging to Downey Wall Paper & Paint Company, a California corporation. Thereafter appellant, a creditor of the corporation, filed its claim for $5,415.95. This was a claim against the proceeds of the corporation’s property which were then, and presumably are still, in appellee’s hands. As against said proceeds, appellant prayed that its claim be accorded priority ovfer those of the bankrupt’s creditors. To this appellee objected. A hearing was had and, on September 28, 1939, the referee entered an order which allowed appellant’s claim as a general unsecured claim against the bankrupt estate, disallowed it as a prior claim and declared that appellant had no right to the proceeds of the corporation’s property except as a general unsecured creditor of the bankrupt. The referee’s order was reviewed and affirmed. From the order of affirmance this appeal is prosecuted.

*50 The record 1 discloses the following facts:

Prior to filing his petition in…