Cohn v. Industrial Salvage Material Co.

GRUBB, District Judge.

This action was commenced by the trustee in bankruptcy of Lincoln Iron & Steel Company (hereinafter referred *492to as “Lincoln”) to recover, as an alleged preferential payment, $20,000 paid to Industrial Salvage Material Company (hereinafter referred to as “Industrial”) by the bankrupt on March 30, 1962.

Lincoln filed a petition for an arrangement under Chapter XI of the Bankruptcy Act (11 U.S.C.A. § 701 et seq.) on May 24, 1962. On July 24, 1962, Lincoln was adjudicated a bankrupt.

The payment in question was made on a promissory demand note given by the bankrupt to the…