Small

Appeal from an order of the District Court affirming an order of the referee disallowing a proved claim for $12,300 (all amounts -are in round numbers) against the bankrupt until appellant should have surrendered an alleged preference of $8,500. Appellant’s claim was based on a note of the bankrupt for $10,000 and an overdraft in the latter’s account for the balance of $2,300’. A few weeks before the petition in bankruptcy *141 was filed, and after appellant had several times pressed bankrupt to cover its overdraft which varied from day to day and at times exceeded $10,000, James Zaferis, stockholder in the bankrupt corporation who had guaranteed payment of all of bankrupt’s obligations to the bank, transferred the balance in his personal savings account with the bank, $4,100, and delivered to it a cashier’s cheek on another bank for $4,400, all of which was credited to bankrupt’s account. The overdraft at that time was some $200 less than the amount thus paid, but large outstanding checks about which all the parties knew, caused the account to be considerably overdrawn before the close of business on that day. For this, James Zaferis accepted from bankrupt its unsecured note…