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IN RE CORSON FURNITURE CO.

46 F.Supp. 727 (1942)

In re CORSON FURNITURE CO., Inc.

District Court, S. D. New York.

April 27, 1942.

Attorney(s) appearing for the Case

John J. Bennett, Jr., Atty. Gen. (Francis T. Nolan, Asst. Atty. Gen., of counsel), for the State of New York.

Oscar W. Ehrhorn, of New York City, Referee in Bankruptcy.

Murray R. Paris, of New York City, for trustee.

CLANCY, District Judge.

This is a petition by the Trustee in Bankruptcy to review an order of the referee allowing priority to a debt due the State of New York from the bankrupt. Both parties agree that the claim's priority depends solely upon § 64 sub. a(5) of the Bankruptcy Act, 11 U.S.C.A. § 104, sub. a(5). It is the State's contention that the Constitution's delegation of power to Congress to enact bankruptcy laws did not include "the power to take away...

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