Bankruptcy and Reorganization A Survey of Changes III.pdfVIP

University of Chicago Law School Chicago Unbound J ournal Articles F culty Schol rship 1938 Bankruptcy and Reorganization: A Survey of Changes III Edward Hirsch Levi Follow this nd dditional works t : http://chic gounbound.uchic /journal_ rticles P rt of the L w Commons Recommended Cit tion Edw rd Hirsch Levi J mes Willi m Moore, B nkruptcy nd Reorg niz tion: A Survey of Ch nges III, 5 University of Chic go L w Review 398 (1938). This Article is brought to you for free nd open ccess by the F culty Schol rship t Chic go Unbound. It has been ccepted for inclusion in Journal Articles by n uthorized dministr tor of Chic go Unbound. For more inform tion, please cont ct unbound@l w.uchic . BANKRUPTCY AND REORGANIZATION: A SURVEY OF CHANGES. IIn* EDWARD H. LVI AND JAAizs Wm. MooRE NON-STATUTORY C ANGES DURING THE DEPRESSION JUDICIAL opposition to the consent receivership, apparent in 1928, increased. In 1932, in Michigan v. Michigan Trust Co.,23 the ques- tion before the Supreme Court was whether state taxes should have priority over claims of creditors to the proceeds of an equity receivership sale. The court held the taxes were payable before creditors claims, and in an opinion written by Justice Cardozo took occasion to refer again to the abuses of the consent receivership. He stated that the court has had oc- casion to point out the abuses that can arise from friendly receiverships forestalling the normal processes of administration in bankruptcy and en