Marshall

Marshall, as trustee of the estate of Hickman, bankrupt, brought suit under section 60, subd. “b” of the Bankruptcy Act of July 1, 1898, c. 541, 30 Stat. 562 (Comp. St. 1916, § 9644), as amended in 1910 (Act June 25, 1910, c. 412, § 11, 36 Stat. 842 ), to set aside the transfer of an interest in the schooner William Olsen to Elizabeth Nevins. Hickman was adjudged an involuntary bankrupt on February 2, 1916, and the transfer involved was made by Hickman to Mrs. Nevins on December 7, 1915, within four months before the adjudication in bankruptcy. The District Court decided in favor of Mrs. Nevins, and the trustee appeals.

[1] The sole issue in the case is: Did Mrs. Nevins know or have reasonable cause to believe, at the time of the transfer to her, that the transfer or its enforcement would effect a preference? It is unnecessary to set forth the evidence at length, and we shall only refer to some essential facts. Hickman in 1897 married the daughter of Mrs. Nevins. From the time of his marriage, up to the time that he was forced into bankruptcy, he was in various business enterprises, but, for the most part, was unsuccessful, and since 1906 has been practically insolvent. Mrs.…