In re Southern Overalls Mfg. Co.

NEWMAN, District Judge.

The question presented by the exceptions to the decision of the referee is whether, as against a payment made within four months and required to be refunded before proof of claim can be allowed, under section 57g of the bankruptcy act, a creditor can set off the amount of new credit given, as provided in section 60c. The question, -stated in another way, is whether the provisions of section 60c refer only to cases covered by paragraph “b” of the same section, where the trustee is authorized to recover because the preference was knowingly received, or whether it refers…