Warner v. Hibler

This action was brought by respondent, as trustee in bankruptcy, pursuant to an order of the referee in bankruptcy, to recover an alleged unlawful preference made by the bankrupt to appellants within the four-months period prior to bankruptcy.

The bankrupt, Axel Hoyer, being then the owner and proprietor of a chain of six retail grocery stores in Seattle, gave six chattel mortgages to appellant Hibler, dated June 18, 1926, acknowledged and filed July 3, 1926, one upon the stock of merchandise and fixtures in each store, to secure a pre-existing, unsecured, open-account indebtedness. These…