109 F. 628 | 2d Cir. | 1900
Lead Opinion
The specifications in opposition to the discharge were, in substance, as follows:
“(1) That Wilcox, while a bankrupt, concealed from his trustee property belonging to his estate in bankruptcy, viz. lot No. 13 in the Devereux tract, In Oneida county, which he had placed in secret trust for his benefit before filing his petition and being adjudged a bankrupt, the apparent title to which lot was in one William H. Bigelow, his brother-in-law. (2) That the property was omitted from his petition and schedules, and for that reason the verification of each thereof was false.”
Lot No. IB and the buildings thereon were omitted from the petition and schedules of the bankrupt. The testimony showed that Wilcox gave a mortgage on July 16, 1888, to Warner Miller, of over 8,000 acres of land in Oneida and Herkimer counties, in the state of New York, including a part of the Devereux tract, which the line between those counties divides, to secure accommodation indorsements. , The Oneida County Bank discounted notes of this class amounting to $10,000, which were renewed, were unpaid, and have been proved in the bankruptcy proceedings. Wilcox also gave on November 25, 1889, to the Oneida County Bank, another mortgage on about 4,000 acres of the land in Herkimer county covered by the Miller mortgage, to secure other notes, amounting to $4,000, which
Upon the hearing before tbe referee upon the petition for a discharge and the specifications in opposition thereto the referee admitted the minutes of the testimony of Albert M. .Mills, .Warner
Rehearing
On Rehearing.
(July 17, 1901.)'
Upon the examination of the bankrupt and other witnesses under section 21 of the bankruptcy statute of 1898, the bankrupt was present in person and by his counsel, and the witnesses, including himself, were subjected to cross-examination by his counsel. The transaction which was made the issue in the objections to his discharge was distinctly a subject of the examination. At the hearing upon the specifications in opposition to his discharge this testimony was offered in evidence, was objected to by the bankrupt’s counsel as incompetent and immaterial, and was admitted subject to the objection. The testimony of Bigelow was important, and, if not properly admitted, the remaining evidence was inadequate to prove the specifications. The testimony of Miller and Mills did not bear materially upon the fraudulent concealment of the particular lot of land mentioned in the specifications. The propriety of admitting, at the. hearing upon the application for a discharge, Bigelow’s testimony, and that of Miller and Mills, upon the examination, and before the issues upon the.objections to the bankrupt’s discharge had been framed, was the question upon the reargument. In Re Krueger, 2 Low. 182, Fed. Cas. No. 7,942, Judge Lowell examined section 26 of the bankruptcy act of 1867 (Rev. St. § 5086), which corresponds to section 21 of the present act, and says:
“These examinations thus stand, in effect, on the footing of summary bills of discovery. The discovery cannot be limited by reference to an action pending, for there is no such limitation in the law; but it is to be confined to the subject-matter, the trade, dealings, and estate of the bankrupt.”
The right of the trustee extends to a discovery of whatever tends to bring to light the estate of the bankrupt so as to enable the trustee to pursue the estate, and reduce it to possession, and to enable