of New York, to which we shall refer more at length hereafter, the initial capital of this subsidiary was furnished by the parent and all of its subsequent requirements of capital were supplied by the parent and were evidenced by notes of the subsidiary or by open accounts. Both corporations had the same officers and directors, and the district and store managers of the subsidiary were employed and paid by the parent. All merchandise in the stores of the subsidiary was purchased by the parent; and moneys collected by the subsidiary, except what was necessary for the payment of local salaries and other minor local charges, were transmitted to it. Dividends were paid by the parent out of the moneys sent it by the subsidiaries, which paid nodividends. In other words, the contention of the receiver was that, while local business was done in the name of the subsidiaries, and contracts for the rental of property were made in their names, this business was handled as though the various subsidiaries were but departments of one business, which was owned and operated by the parent, and that the latter was in reality the owner of the property which apparently belonged to the subsidiaries.
On January 14th the parent corporation was adjudged a bankrupt on its voluntary petition filed in the Southern District of New York, and the Irving Trust Company was appointed receiver in bankruptcy of its affairs pending the election of a trustee. The receiver immediately took over and began operating the business of the bankrupt