Hudson

This is an appeal from an order of the District Court, Southern District of California, Central Division, affirming on review Findings of Fact, Conclusions of Law, and Order of a Referee in Bankruptcy. This case has an interesting background.

To make this opinion understandable a somewhat lengthy statement of the case history must be given. John Lucas Hudson, Sr., filed a voluntary petition in bankruptcy on April 19th, 1954, and on that date was adjudged a bankrupt. He has at all times been represented in this bankruptcy matter by one Merrill L. Granger.

As the brain child of Hudson and Granger the Pacific Palmdale Development Company (hereinafter called *437 “Palmdale”) came into being after numerous conferences and discussions, the tenor of which were how to capitalize Hudson’s capabilities, make some profitable deals, and at the same time protect the profits of the insolvent Hudson against his creditors.

Hudson was and is a skilled “mass production” builder in the construction field. Merrill L. Granger, who represents Hudson in this matter, as well as the pending bankruptcy, is one of the actors. Granger is an attorney with considerable experience in the “insolvency” and…