Hollister

This is an appeal from an order and judgment of the District Court dismissing a creditors’ petition and an amended petition filed by additional creditors of Oregon Hardwood Mills, a corporation, seeking an adjudication of bankruptcy against said corporation. The act of bankruptcy charged is under section 3a (3) of the act (Comp. St. § 9587), viz. suffering or permitting a creditor to obtain a preference through legal proceedings.

Upon the hearing of the original petition and amended petition, the special master ultimately found and reported that the petitioning creditors’ claims aggregated $587.93, being sufficient in amount to confer jurisdiction; but he also reported “that there was no proof anywhere in the record” as to the solvency or insolvency of the alleged bankrupt at the date of the commission of the act of bankruptcy charged. After a careful consideration of the record we find ourselves unable to concur in this conclusion, and it presents the only question for review on this appeal.

The record of the hearings discloses the following: Joseph H. Gill was president of the Oregon Hardwood Mills corporation, the affairs of which he dominated. In the year 1923 its plant was…