the Referee and the attorney for the debtor was as follows:
"THE REFEREE: Is there a claim of the Picatinny Arsenal?
"MR. FREEMAN: The Picatinny Arsenal may have some claim.
"THE REFEREE: Have we put up enough money to meet it?
"MR. FREEMAN: No.
"THE REFEREE: Is there a problem there?
"MR. FREEMAN: We do not owe them any money, and we want to bring them in. I want to state to your Honor further that the debtor company will deposit any sum of money that is represented by any claim that the Picatinny Arsenal may file in these proceedings within a time that your Honor directs them to file it.
"THE REFEREE: Have you any notion of what they might claim?
"MR. FREEMAN: We think they may claim $ 20,000.
"THE REFEREE: Have you $ 20,000 available?
"MR. FREEMAN: We have $ 94,000 available to pay them if necessary, and we represent to your Honor that there will be at all times $ 20,000 or more available to dispose of that claim, in cash * * *
"MR. FREEMAN: I have a further application to limit the time of the United States of America to file a claim in this proceeding. And I am now handing your Honor a petition and order to show cause.
"THE REFEREE: There is a provision in the statute --
"MR. FREEMAN: Yes, there is.
"THE REFEREE: I want to see it.
"MR. FREEMAN: It is Section 369.
"THE REFEREE: Section 369 says under proved debts:
"'1. Have been proved but not allowed or disallowed, prior to the date of confirmation; or 'unliquidated debts.'
"'2. Are disputed or unliquidated, have been scheduled by the debtor, and are proved within such time as the Court may direct; or 'Arising from rejection of executory contracts.'
"'3. Arise from the rejection of executory contracts by the debtor and are proved within such time as the Court may direct.'
"This comes within the last category.
"MR. FREEMAN: Yes, that is the last category.
"THE REFEREE: Well, I will sign this order and let Miss Robinson fix the date. * * *"
'The records of the Clerk of the Bankruptcy Court reflect the appearance of 'G. Stewart King', distributing agent and president of the debtor corporation, in court on that date.
'8. On April 14, 1947, an order was entered directing the United States of America to file its claim on or before May 9, 1947.
'9. On May 9, 1947, the United States of America filed its preliminary contingent proof of claim in the amount of $ 26,818.82. The aforesaid claim alleged that the United States of America was a priority creditor.
'10. On May 9, 1947, the distributing agent had in his hands the sum of $ 6,085.01, which was subsequently distributed as follows:
United States of America $ 3,620.39
Creditors having a
priority to United
States of America 1,057.55
Creditors not having a
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