In re Joseph

HAYES, District Judge.

Stein Bros, filed a claim against the bankrupt estate for the sum of $3,000 secured by a chattel mortgage executed by the bankrupt on February 15,1929, and recorded February 18, 1929, on a stock of merchandise. . Five pre-existing creditors objected to the allowance of this claim and moved thatdt be disallowed. A hearing was granted by the referee and upon the evidence taken he made his findings of fact and concluded as a matter of law that the mortgage was valid and allowed the same as a preferred claim. The creditors excepted and appealed to this court.

Among other…