POMPER v. UNITED STATES

No. 194, Docket 22261.

196 F.2d 211 (1952)

POMPER v. UNITED STATES.

United States Court of Appeals Second Circuit.

Decided March 28, 1952.


Attorney(s) appearing for the Case

Louis P. Rosenberg, Brooklyn, N. Y., for trustee.

Ellis N. Slack, Acting Asst. Atty. Gen., (A. F. Prescott and S. Dee Hanson, Washington, D. C., of counsel), and Frank J. Parker, U. S. Atty., Brooklyn, N. Y. (Nathan Borock, Brooklyn, N. Y., of counsel), for the United States.

Before SWAN, Chief Judge, and CLARK and FRANK, Circuit Judges.


FRANK, Circuit Judge.

In rejecting the claims for priority, the Referee recognized that obligations incurred by a debtor-in-possession — in carrying on the business, whether for wages, goods, or taxes — are normally entitled to first priority as legitimate expenses of administration within the meaning of Section 64, sub. a(1). 11 U.S.C.A. § 104, sub. a(1). Thus, there are many decisions holding that state franchise taxes on the privilege of doing...

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