219 F. 876 | 3rd Cir. | 1915
This was a case of involuntary-bankruptcy, begun by petition filed on July 5, 1912. A discharge was refused on two grounds: (1) Failure to keep proper books of account; and (2) fraudulently concealing assets. The special master and the District Judge sustained both objections, and the bankrupt has appealed.
The facts bearing upon the first objection are these:
Janavitz had formerly lived in Duquesne, and had been discharged in bankruptcy about 10 years before. Afterwards he carried on business in Monessen, either for himself or in partnership, finally opening a large department store ih 1907 for his individual account. His wife, Rosa, always assisted her husband in his various enterprises. During the bankrupt’s absence in Europe several years ago, he gave her a power of attorney (which he testified “is still in effect”) to conduct the business as she thought best, including the right to hire and discharge subordinates. She was assisting him when he took sick in March, 1911, and thereafter she was practically in sole charge of the business, conducting the -store, buying and selling goods, hiring and discharging clerks, and signing checks in her husband’s name. After the petition was filed she furnished the data for the schedules. Her husband testified that after he returned from a hospital in January, 1912, he did not take full charge of the business, “but as much as I could I looked after the financial end of it and did the buying when I was able.” In April, 1912. he fell desperately sick again, and (whether he was at home or in a sanitarium) he did not know what was being done until after the creditors’ petition was filed. From January, 1907, to M'ay 13, 1912, a capable bookkeeper had been in charge of the accounts and the cash. The bopks were carefully kept, so as to show the financial condition of the bankrupt at any time., But the bookkeeper asked for a larger salary, and after several months’ delay — due apparently to her sense that increasing financial trouble made her continued service more than usually desirable — she went away. A substitute was provided as cashier, but she could not keep books, and from early in May' there are practically no books or accounts. This is admitted, and indeed it is clear that for nearly 60 days it would have been impossible to ascertain the bankrupt’s financial condition from the records of the business. The defense is made that the bankrupt’s sickness and other troubles rendered his wife unable to do the work herself, or (as we understand) even to see that it was done by some other person.
Upon these facts, testified to before him, the master sustained the objection, finding that the conceded failure during two months to keep the required books was with intent to conceal the bankrupt’s condition. Two questions are raised upon this appeal: (1) Would the foregoing facts justify the court in refusing a discharge to Rosa Janavitz, if she
It is not necessary to consider the objection that assets were fraudulently concealed.
The order appealed from is affirmed.