Cregg v. Merchants Trust Co.

This is an action of contract, brought by the plaintiff as trustee in bankruptcy of the estate of Daniel F. McCarthy, Jr., to recover the sum of $3,000 which the trustee alleges was paid as a preference to the defendant by the said McCarthy while he was insolvent, in violation of the bankruptcy act.

*526It is not in dispute that McCarthy was adjudged an involuntary bankrupt on May 8, 1916; that the plaintiff was duly elected and now is trustee of said bankrupt; that the petition, filed on April 18,1916, showed his liabilities to be $7,666.90 and his assets $650. It is also not in dispute that the…