Pirie v. Chicago Title & Trust Co.
Supreme Court of the United States
APPEAL FROM THE CIRCUIT COURT OF APPEALS FOR THE SEVENTH CIRCUIT. In-proceedings in bankruptcy in the matter of Frank Brothers, bankrupts, in the District Court for the Northern- District of Illinois, the appellants filed a claim for goods, wares and merchandise, sold and delivered to said bankrupt firm for the sum of $3098.98. The claim was allowed, and subsequently a dividend of fifteen per cent was paid thereon.
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APPEAL FROM THE CIRCUIT COURT OF APPEALS FOR THE SEVENTH CIRCUIT. In-proceedings in bankruptcy in the matter of Frank Brothers, bankrupts, in the District Court for the Northern- District of Illinois, the appellants filed a claim for goods, wares and merchandise, sold and delivered to said bankrupt firm for the sum of $3098.98. The claim was allowed, and subsequently a dividend of fifteen per cent was paid thereon. On the 31st of August, 1899, the appellee, the Chicago Title and Trust Company, filed a petition for a reconsideration of the claim and its rejection on the ground that Carson,…
1Opinion of the CourtJustice McKenna
The question .presented by this record is whether payments in money made by an insolvent debtor to a creditor, the debtor not intending to give a preference, and the creditor not having rea sonable cause to believe a preference was intended, did neverthe-' less constitute a preference within the meaning of the bankrupt act of 1898, and were required to be surrendered as a condition of proving the balance of the debt or other claims of the creditor.
The solution of the question depends primarily upon the intrepretation of subdivisions “ a ” and “ 5,” section 60, of the law of July 1,1898, c.…
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