Western Tie & Timber Co. v. Brown

Citations

• 129 F. 728
• 64 C.C.A. 256
• 1904 U.S. App. LEXIS 4091

Syllabus

<p>1. Bankruptcy — Transfer to Preferred Creditor — Preference.</p> <p>Under section 60a of the bankrupt law of July 1, 1898,. c. 541, 30 Stat. 562 [U. S. Comp. St. 1901, p. 3445], as amended (Act Feb. 5, 1903, c. 487, § 13, 32 Stat. 799 [U. S. Comp. St. Supp. 1903, p. 416]), a transfer of the debtor’s property may constitute a preference, although the property is not conveyed to the preferred creditor, if the effect of the transfer is to enable the creditor to receive out of the debtor’s estate a larger percentage of his claim than others of the same class obtain.</p> <p>2. Same — Voidable Preference — Intention to Give — Necessity.</p> <p>An intention on the part of the insolvent to give a preference by means of a transfer he makes is not indispensable to the existence of a voidable preference, under section 60 of the bankrupt law of July 1, 1898, e. 541, 30 Stat. 562 [U. S. Comp. St. 1901, p. 3445], as amended (Act Feb. 5, 1903, c. 487, § 13, 32 Stat. 799 [U. S. Comp. St. Supp. 1903, p. 416]). It is sufficient that a transfer of the insolvent’s property is made, which has the effect to give a preference, and that the party who receives it has reasonable cause to believe that it is intended by the party who procures the transfer, or who gives to the transfer the effect of a preference, that it should have that effect, although the insolvent is innocent of that intention.</p> <p>8. Same — Voidable Preferences not Allowable as Set-Offs.</p> <p>Preferences voidable under sections 60a and 60b of the bankrupt law of July 1, 189S, c. 541, 30 Stat. .562 [U. S. Comp. St. 1901, p. 3445], as amended (Act Feb. 5, 1903, c. 487, § 13, 32 Stat. 799 [U. S. Comp. St Supp. 1903, p. 416]), are not allowable as set-offs against claims of the preferred creditors under section 68 (30 Stat. 565 [U. S. Oomp. St. 1901, p. 3450]), on the ground that the preferences and the claims constitute mutual debts and credits.</p> <p>f 2. See Bankruptcy, vol. 6, Cent. Dig. §§ 252, 256.</p> <p>4. Sam