In re Basic G. Industries, Inc.

INGRAHAM, District Judge.

The Longhorn Construction Company, hereafter referred to as “Longhorn”, has petitioned for review of the referee’s order disallowing its claim as a secured claim and allowing the same only as an unsecured claim in the amount of $5,471.01. This order was based upon the referee’s finding that a chattel mortgage held by Longhorn on property it had sold to Basic G. Industries, Inc., hereafter referred to as “bankrupt”, constituted a voidable preference under the Bankruptcy Act, 11 U.S.C.A. § 1 et seq. Longhorn contends (1) that the referee erred in finding that at the…