Glenn-Colusa Irr. Dist. v. Mason

The district court sitting in bankruptcy 1 (“An Act To establish a uniform system of bankruptcy throughout the United States,” approved July 1, 1898, as said act has been amended and is now in effect, particularly as said act has been amended by the addition thereto of said Chapter X by the act of the Seventy-Fifth Congress, designated Public Number 302, approved August 16, 1937) denied the Glenn-Colusa Irrigation District its petition for the final decree in its proceeding for confirmation of a plan of composition of indebtedness. The District appeals.

The Irrigation District filed its petition under § 83 of the Bankruptcy Act, 11 U.S. C.A. § 403, November 29, 1937. Certain bondholders of the District, among them respondents herein, opposed the plan. They denied, inter alia, allegations contained in the petition to the effect, that farming in the District had been unprofitable, that tax obligations of the District were too great for the land owners therein to pay, that the District was insolvent, that the District was unable to meet its debts and that it was imperative for the District to effect a composition of its debts, and they averred that the plan proposed is unfair. In…