| W.D. Okla. | Apr 15, 1911
The objections of Peck & Hills Furniture Company to the discharge were (1) obtaining merchandise from this creditor upon a materially false statement in writing; (2) omission to include in schedule of assets stock in the Green Dawn Realty’ Company; and (3) scheduling without valuation certain town lots in Eureka Springs, Ark., as exempt, in excess of the area and valuation permitted by law, secretion of the “equity” thereon from the creditors, and failure and refusal to turn same over to the trustee. The exceptions to the report of the master definitely relate only to the first and third grounds of objections.
’ As to the first ground of exception, the questions presented are whether the master erred in. deciding' that there was no evidence to the effect that this creditor relied upon the false statement, and that the bankrupt was not responsible for the statement. With reference to the homestead, the exception taken is that the master erred in finding that the bankrupt was entitled to the real estate known as Magnetic Springs Hotel, as an exempt homestead, the evidence showing that it was used as a hotel, and not as a home or residence for the personal use of the bankrupt and her family.
With reference to the controversy as to the claim of exemption, it appears in the first place that the bankrupt scheduled the real estate in Eureka Springs as exempt, but omitted to give it a valuation. The state laws which govern as to the exemption are those of the state in which the bankrupt had her domicile for the six months or the greater portion thereof immediately preceding the filing of the petition in bankruptcy. In this case, the laws of Arkansas appear to be applicable. However, -it is not necessary to plead .these laws as the federal courts take judicial knowledge of the laws of all of the states. But the question involved on the contest over the discharge was not what homestead in respect of area or valuation the bankrupt was entitled to have awarded to her. That controversy was one to be dealt with and disposed of on exceptions to the report of the trustee. The question involved in this proceeding was whether the schedule was falsely made, and there was a secretion of property from the trustee. In other words, whether an offense was committed under section 29b of the bankruptcy law. The exception does not clearly present the question. Waiving this, however, the evidence, in the view of the court, does not sustain the objection originally taken. It was not sufficiently established that the bankrupt intentionally made a false oath with respect to the exemption or intentionally withheld or secreted the property from the trustee. The conclusion of the master on this branch of the issues was correct, and the exceptions thereto are overruled.
It follows from the foregoing that the discharge should be denied. It will be so ordered.