In Re Paper City Mill Supply Co.

MORTON, District Judge.

It is conceded that the bankrupt was insolvent, and the evidence makes clear that it was deeply insolvent, at the times when the goods in question were bought. As persons in charge of a business are presumed to he aware of its financial condition, in a general way, at least, and to intend the necessary consequences of their acts, purchases on credit under such conditions are presumptively fraudulent. This inference may be overcome by evidence which shows that the transactions in question were entered into in good faith by the buyers, .with a real, though illusory,…