In re the General Assignment for the Benefit of Creditors of Geoghan

In the early part of 1951, R & H Electric Company, a retail dealer in electrical and gas ranges, refrigerators, etc., received certain merchandise from several sellers. Some payment was made on account, but the substantially greater part of the purchase price was unpaid. The credit transactions involved arrangements with the National City Bank of New York, whereby the merchandise was acknowledged to be held in trust by the dealer for the bank. Formal trust receipts were executed, which, in substance, provided that the bank (called the “ entruster ”) entrusted the merchandise to the buyer…