123 F. 166 | S.D. Ill. | 1903
In this case an involuntary petition in bankruptcy was filed November 12, 1902. Receiver was appointed November 15, 1902. November 20, 1902, there was an order on bankrupt to show cause why she should not be púnished for contempt, for failure to turn over books and property to receiver.
Some objection has been urged to the jurisdiction of the court to make the order herein prayed by the trustee. There can be no doubt of the power of the court in the premises. The bankrupt law gives full authority to the court to enforce obedience to all lawful orders, and to punish contempts for any disobedience.
The rule entered January 12, 1903, required the bankrupt to show cause why she should not be required to turn over certain property, or the proceeds thereof, stated to be $35,000 in amount. For four days the court has heard testimony and arguments in the case. Counsel for the respondent contend that the answer to the rule, being under oath, is conclusive upon the court. I cannot accept that view. The question seems to be settled in this circuit, having arisen in the Salkey Case, 21 Fed. Cas. 235 (No. 12,253), 6 Biss. 269, before Judge Blodgett, under the bankruptcy act of 1867 (Act March 2, 1867, 14 Stat. 517, c. 17.6), and his decision confirmed, on application for review, by Drummond, Circuit Judge. The same rule is followed in the Ninth Circuit, in Ripon Knitting Works v. Schreiber (D. C.) 101 Fed. 810 (Hanford, District Judge), and approved by the Circuit Court of Appeals (104 Fed. 1006).
I have given careful consideration to the evidence in the case, both at the time it was submitted, and from my notes made upon it at the time. The proof is conclusive that in January, 1902, the bankrupt had a business at East St. Louis which was flourishing, and for at least a year had been apparently profitable. From an inventory made at that time, the stock invoiced at $18,600. This inventory was made for the bankrupt by her two sons, Abe and Morris Gerstel, who testified that it was made up from figures furnished by the heads
The court therefore finds that the respondent has in her possession or under her control property, or the proceeds thereof, belonging to her estate, amounting in value to the sum of $15,000, and which she wrongfully withholds from the trustee; and the order of the court will be that she deliver over to the trustee money or property to the amount of $15,000 in value within 10 days, and in default thereof that she be committed to the Sangamon county jail until such order be complied with.