In re General Drug Co.

BREWSTER, District Judge.

The above-entitled matter came on upon the master’s report on adjudication. The report is confirmed.

It appears that the bankrupt corporation, while insolvent, made numerous payments of cash to sundry creditors. Some were payments in full of indebtedness and others were payments on account. The treasurer knew of the insolvent condition of the corporation when he made these payments, and the inevitable consequence, at least in several instances, was to prefer such creditors over other creditors of the corporation. He dis*93avows any positive intent when he made the…