222 F. 253 | 5th Cir. | 1915
We do not think that the decree appealed from was erroneous. In addition to the reasons stated in the opinion of the District Judge in support of the conclusion he reached, we have to say that it seems to us that the arrangement between the appellants
And it may be further noticed that the case shows á combination or ■quasi partnership between the bankrupt and the appellants (apparently antedating the bankruptcy for considerable time), resulting in their mutual advantage and profit at the expense of and against thd interest of the laborers; the bankrupt getting its advantage in a practical reduction of 10 per cent, of its labor expense and the right to buy its own supplies from the appellants at cost prices, while the appellants secured a practical monopoly of the furnishing business at the bankrupt’s camps without any limit on profits from goods sold to the laborers. If the combination had been made between the appellants and the laborers, under which credit had been given to the laborers, and thereunder they had been furnished goods at fair prices, there might have been some equity in the claim of the appellants that in taking up the laborers’ time checks or trade orders it should be subrogated to the laborers’ liens for wages. There is a notable absence of equitable considerations to support the contention made in behalf of the appellants.
It was correctly decided that the demands acquired by the appellants in the manner above indicated were not claims against the bankrupt estate which were entitled to priority.
It follows that the decree appealed from should be affirmed; and it is so ordered.