Shea v. Falls Canning Co.

The plaintiff, a trustee in bankruptcy, seeks to recover the value of certain merchandise transferred by the bankrupt to the defendant, thereby preferring the latter over its other creditors in violation of the United States Bankruptcy Act.

Attached to the complaint is a copy of an order of the referee in bankruptcy disallowing the defendant's claim. The recitals in the order set forth that the defendant, within four months prior to the filing of the petition herein, received from the bankrupt certain merchandise of the agreed price and reasonable value of the sum of $9,413.25 as collateral…