Fischer v. Liberty Nat. Bank &. Trust Co. in New York

PATTERSON, District Judge.

This is a suit by a trustee in bankruptcy to recover alleged preferences made to- three *857creditors. Tile payments were made on October 15, 1930; the involuntary petition in bankruptcy was filed on February 14,' 1931. The proof shows that the bankrupt was hopelessly insolvent when he made the payments. Two issues are presented: First, as to the reasonable cause to believe on the part of each defendant that tho transfer would result in a preference; and, second, as to the effect to bo given to a certain order signed by the bankrupt in favor of two of tho defendants on…