This matter comes before the court by way of an appeal from the findings of the Referee in Bankruptcy made as a result of hearings held before him after the filing of a petition for an arrangement under Chapter XI of the Bankruptcy Act, 11 U.S.C.A. § 701 et seq.
The debtor, Lieb Bros. Inc., owned a piece of property in Newark, N.J., which was sold by order of the Referee. The sum of $ 125,000 was realized at the sale and there arose the question of the distribution of this sum among creditors. Referee Tallyn found that the following claims had been proven. They are listed in chronological order.
Claimant Date of lien Amount
1. Borwac Realty Co. (Mortgage) June 16, 1951 $26,000.00
2. United States, tax lien Feb. 11, 1952 25,689.04
3. City of Newark, tax lien Jan. 1, 1953 7,610.83
4. United States, tax lien Jan. 21, 1953 112,746.77
5. City of Newark, tax lien Jan. 1, 1954 8,353.35
6. City of Newark, tax lien Jan. 1, 1955 8,275.19
7. City of Newark, tax lien Jan. 1, 1956 4,137.60