Appeal from the District Court of the United States for the Western District of Pennsylvania; Nelson McVicar, Judge.
Before BUFFINGTON and DAVIS, Circuit Judges, and AVIS, District Judge.
BUFFINGTON, Circuit Judge.
On April 1, 1929, the J.G. Bennett Company, a corporate citizen of Pennsylvania, was adjudicated bankrupt on its voluntary petition. It then and for some years previously did business on leased property in Pittsburgh. The lease provided for "the payment when due of all water rent or water assessments assessed, charged and levied against the premises during the term of this lease, and the payment when due of all City School, County and States taxes and/or any other kind of taxes or assessments of any kind whatsoever assessed against or levied upon the said premises during the term of this lease."
It further provided: "Said water taxes and other taxes being a part of the rent of the premises as hereinbefore stated." In addition to tax payments, the lessee was to pay $13,000 annually.
At the time of the bankruptcy there was payable by the lessee $6,655.74 in money, and there were certain outstanding taxes as stated below.
The proceeds of personal property on the premises was more than sufficient to pay both money rental and taxes in full. The lessor presented a claim as follows:
Rent -- balance due October 1928 $155.70
Rent -- November 1928 to April
1929, both inclusive, at $1083.24
Taxes, payable as rent, by the lessee
1928 County Taxes 1224.19
Balance 1928 City Taxes ...