Hurley v. N. J. Reilly Co.

BREWSTER, District Judge.

This is a proceeding in equity, brought by a trustee in bankruptcy of the Northeastern Shoe Company to recover a preference voidable under section 60b of the Bankruptcy Act (Comp. St. § 9644). The material facts as established by the evidence are as follows:

The bankrupt was engaged in the business of manufacturing shoes. The defendant was a merchant selling leather which entered into tho manufacture of shoes. The defendant began doing business with the bankrupt in June, 1924. For the leather first purchased the bankrupt made a partial payment by cheek in July, 1924.…