Melville Fuller

“ If a bankrupt shall have given a preference within four months before the filing of a petition, or after the filing of the petition and before the adjudication, and the person receiving it, or to be benefited thereby, or his agent acting therein, shall have had reasonable cause to believe that it was intended thereby to give a preference, it shall be voidable by the trustee, and he may recover the property, or its value from such person. ”

“ A person shall be deemed to have given a preference if, being
insolvent, he has procured or suffered a judgment to be entered against himself in favor of any person, or made a transfer of any of his property, and the effect of the enforcement of such judgment or transfer will be to enable any one of his creditors to obtain a greater percentage of his debt than any other of such creditors of the same class. ”

“ In view of similar vital differences it has been held by the circuit court of appeals for the first circuit (Dickson v. Wyman, 55 L. R. A. 349, 49 C. C. A. 574, 111 Fed. 726) , second circuit (Re Sagor, 9 Am. Bankr. Rep. 361) , third circuit (Gaas v. Ellison, 52 C. C. A. 366, 114 Fed. 734) , eighth circuit (Kimball v. Rosenham Co. 52 C. C. A. 33, 114 Fed. 85) , that payments on a running account, where new sales succeed payments, and the net result is to increase the value of the estate, do not constitute stitute preferential transfers under § 60a. ”