In the case of Manufacturers' Finance Co. v. McKey, Trustee in Bankruptcy (1934), the United States Supreme Court was tasked with determining whether a bankrupt company's trustee could recover payments made to a creditor within four months of bankruptcy if those payments were made while insolvent and preferred one creditor over others. The court ruled that under Section 60b of the Bankruptcy Act, such preferential transfers are voidable by the trustee if they occur within this time frame and meet other specified conditions - namely, that they allow one creditor to receive more than their fair share compared to other creditors in similar situations. This decision reinforced principles of fairness among creditors during bankruptcy proceedings.

In the dissenting opinion for Manufacturers' Finance Co. v. McKey, Trustee in Bankruptcy, Justice Stone argued that the majority's decision was inconsistent with previous rulings and legal principles regarding bankruptcy law. He contended that a debtor should not be allowed to prefer one creditor over another by transferring assets shortly before declaring bankruptcy, as this would undermine the equitable distribution of assets among all creditors - a fundamental principle of bankruptcy law. Furthermore, he disagreed with the majority's interpretation of "transfer" under Section 60b of the Bankruptcy Act and believed it should include any act which diminishes or depletes a debtor’s estate thereby reducing what is available for other creditors upon insolvency declaration. Thus, according to him, payments made by Manufacturers' Finance Company were indeed transfers subject to recovery by trustee in bankruptcy.