Beharrell

The respondents are trustees of the estate of I. Gevurtz, a bankrupt corporation, to which corporation the petitioner, shortly before the proceedings in bankruptcy, had sold rugs of the aggregate value of $3,907.36. At the time of such sale the petitioner knew that Gevurtz & Sons were in financial difficulties, but upon the assurance of Gevurtz that his company was negotiating with a bank in Portland for a large sum of money with which to meet its pressing necessities and for an extension of credit on the part of its larger creditors, made the sale of the rugs and delivered them from time to time. Gevurtz, finding his company unable to consummate the negotiations, notified the petitioner of that fact, and within a few days of the filing of the petition in bankruptcy by his company returned *692 to the petitioner all the rugs so purchased remaining in the hands of the purcháser, aggregating in value $2,911.60, all of which the petitioner accepted, leaving a balance due the petitioner from Gevurtz & Sons of $996.26. For that balance the petitioner filed a claim against the bankrupt, to which claim the trustees of the bankrupt’s estate filed objections, on the ground that the…