In re Schmechel Cloak & Suit Co.

PHILIPS, District Judge.

The case certified to this court by the referee in bankruptcy for decision presents the single question: Where the principal creditor cannot prove up his claim against the bankrupt estate without first surrendering the amount of his preference, under section 57g of the bankrupt act, which declares that “the claims of creditors who have received preferences shall not be allowed unless such creditors shall surrender their preferences,” can the guarantor of the debt, who executed his note to the creditor for the balance of the debt after adjudication in bankruptcy, prove…