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IN RE I. J. KNIGHT REALTY CORP.

No. 15507.

370 F.2d 624 (1967)

In the Matter of I. J. KNIGHT REALTY CORP., Bankrupt. Reading Company, Appellant.

United States Court of Appeals Third Circuit.

Reargued December 8, 1966.

Decided January 6, 1967.

Attorney(s) appearing for the Case

Thomas Raeburn White, Jr., Philadelphia, Pa. (Michael H. Malin, S. Laurence Shaiman, White & Williams, Philadelphia, Pa., on the brief), for appellant.

Edward L. Rogers, Atty., Dept. of Justice, Tax Div., Washington, D. C. (Richard M. Roberts, Acting Asst. Atty. Gen., Lee A. Jackson, Joseph Kovner, Attys., Dept. of Justice, Drew J. T. O'Keefe, U. S. Atty., Washington, D. C., on the brief), for appellee United States.

Owen B. Rhoads, Philadelphia, Pa. (Samuel Marx, Arthur E. Newbold, III, William J. Sharkey, Dechert, Price & Rhoads, Philadelphia, Pa., on the brief), for appellee trustee.

Before STALEY, Chief Judge and McLAUGHLIN, KALODNER, HASTIE, SMITH, FREEDMAN and SEITZ, Circuit Judges.

OPINION OF THE COURT

KALODNER, Circuit Judge.

The issue presented on this appeal is whether appellant's claim, if proved, is entitled to the priority status accorded to costs of administration by Section 64, sub. a(1) of the Bankruptcy Act.1

The facts are not in dispute, and have been stipulated. In substance, they are as follows:

On November 16, 1962, I. J. Knight Realty Corp. filed a petition for arrangement...

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