Carson v. Federal Reserve Bank

The action is by trustees in bankruptcy to recover $10,363.93 paid by the bankrupt to defendant upon the ground that such payment constituted a voidable preference under the Bankruptcy Act. The defendant is the Federal Reserve Bank in the Second Federal Reserve District. Its main office is in New York city, and it has a branch at Buffalo. The bankrupt, Zartman & Co., was a partnership doing business as private bankers in Waterloo, Seneca county, N. Y.

*227The facts out of which the controversy arises may be broadly stated as follows. On May 16 and 17, 1927, thirty-seven of defendant’s member banks…