222 F. 173 | S.D.N.Y. | 1914
The referee’s report dwells principally upon the specification which alleged the obtaining of property on credit upon a materially false statement in writing made by the bankrupt to any person for the purpose of obtaining credit from such a person. The very careful report on this head is a perfect instance of the importance of seeing and hearing witnesses. The referee has found as a fact that the bankrupt “did not knowingly make a false statement as a basis for procuring goods on credit.”
“Under tbe act as it now reads it is no longer necessary to prove tba't tbe bankrupt’s intent was fraudulent, or that bis acts were done in contemplation of bankruptcy. It is enough to prevent bis discharge if be has, with intent to conceal bis financial condition, failed to keep books of account from which such condition might be ascertained.”
When a bankrupt fails to keep a record of borrowed money (he be-' ing in mercantile business), I am still of the opinion expressed in Re Brenner (D. C., N. Y.) 20 Am. Bankr. Rep. 644, 166 Fed. 931. It is, of course, always open to a bankrupt to show that he was ignorant, careless, intended no wrong, etc.; but each case must stand upon its own facts, so that the inquiry always is whether the inference of intent is overset by the evidence given, in this case Linker transacted no small business, his stock was insured for $4,000, and he probably at times (on his own showing) had a larger stock than that. He scheduled a stock of that amount. It is to me inconceivable that a man doing the kind and amount of business that Linker did could have failed to keep books for any other reason than an intent to conceal.
It follows that, as to this ground of objection, I disagree with the referee and deny a discharge.