Engstrom

Northwest Chemurgy Cooperative is a bankrupt. Engstrom is the duly authorized and acting trustee thereof. The preference statutes of the State of Washington, §§ 5831-4 and 5831-6 of Rem.Rev.Stat. of Washington were in full force and effect, and Chemurgy was insolvent within the meaning of these statutes on February 7, 1947, and for at least four months prior to May 29, 1947.

On January 27, 1947, R. M. Wiley sold and delivered to Chemurgy at Wenatchee, Washington, a quantity of wheat. Chemurgy gave Wiley, personally, its check dated that day, payable to him and drawn on the Wenatchee Valley Branch of the Seattle-First National Bank. Wiley deposited this check in the Waterville Branch of the National Bank of Commerce on February 6, 1947. Waterville was his home town, about thirty miles from Wenatchee. The check was paid by the drawee bank out of the funds of Chemurgy then on deposit February 7, 1947. There is no- showing as to the state of the account of Chemurgy in the Wenatchee Branch of the Seattle-First National Bank on the date the check was drawn or thereafter to date of payment. We are concerned only with whether the payment of the check by the -bank out of the account of…