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IN RE NORTH ATLANTIC AND GULF STEAMSHIP COMPANY

Nos. 93343, 93508.

252 F.Supp. 724 (1966)

In the Matter of NORTH ATLANTIC AND GULF STEAMSHIP COMPANY, Incorporated, and Nortropic Shipping Company, Incorporated, Debtors.

United States District Court S. D. New York.

April 11, 1966.

Attorney(s) appearing for the Case

Bergerman & Hourwich, New York City, for trustee; Milton M. Bergerman, William Baronoff, New York City, of counsel.

Robert M. Morgenthau, U. S. Atty., for claimant, United States; Louis E. Greco, Atty. in Charge, Gilbert S. Fleischer, Atty., Admiralty & Shipping Section, Dept. of Justice, of counsel.

Maurice & McNamee, New York City, for Seaboard Surety Co.; Stewart Maurice, New York City, of counsel.

FREDERICK van PELT BRYAN, District Judge.

In these Chapter X reorganization proceedings, the trustee has moved to deny priority to a non-tax claim of the United States in the sum of $138,916.58 for additional charter hire due from the debtor North Atlantic and Gulf Steamship Company, Incorporated on the ground that such a claim is not entitled to priority under Chapter X.

The Government contends (1) that denial of priority at this time is barred by §...

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