Worden v. Columbus Electric Co.

BAKER, District Judge.

The petition to reconsider the decision of this court is overruled. This court has held that a trustee could not recover back from a creditor, to whom a payment had been made on a valid pre-existing debt, the money so paid, unless it was shown that the payee had reasonable cause to believe that a preference was thereby intended. . The court further held that clause e of section 67 did not apply to such preferential payment. Blakey v. Bank, 95 Fed. 267. This case, however, throws no light on the question involved in the present controversy. The bankruptcy act, in clause g…