DOEHLER DIE CASTING COMPANY et al., Complainant, v. GEARHART KNITTING MACHINE COMPANY, Respondent (COUNTY NATIONAL BANK, Intervener and Appellant).
(Circuit Court of Appeals, Third Circuit.
December 14, 1925.)
No. 3415.
Appeal from the District Court of the United States i'or the Western District of Pennsylvania; Robert M. Gibson, Judge.
Appeal of the County National Bank from the District Court of the United States for the Western District of Pennsylvania, authorizing tho issuance of receivers’ certificates and the expenditure of the proceeds from the sale thereof.
Moorhead & Knox, of Pittsburgh, Pa., and Hartswick, Arnold & Platt, J. P. O’Laughlin, and A. H. Woodward, all of Clearfield, Pa., for appellant.
Reed, Smith, Shaw & McClay, of Pittsburgh, Pa., Wolf, Patterson, Block & Schorr, of Philadelphia, Pa., A. M. Liveright, of Clearfield, Pa., and Sidney E. Smith, of Philadelphia, Pa., for appellees.
Before BUFFINGTON, WOOLLEY, and DAVIS, Circuit Judges.
PER CURIAM.
The exigencies of this receivership call for such a speedy decision of this ease that an extended discussion of its issues is impossible. Wo shall only say that in our opinion the money to> be raised on receivers’ certificates and to be applied in part to the discharge of tho corporation’s past-due indebtedness to service instructors and to many thousand widely scattered “knitters,” whereby the recovery of many thousand dollars worth of the corporation’s yarn and tho enhancement of the value of certain of its assets are made possible, will not, in tho peculiar character of the business, amount in law to preferential payment of the claims of unsecured creditors, but rather that such payment is a necessarily precedent factor in the conservation of the corporation’s property.
Tho decree of the District Court is affirmed.