Page:Federal Reporter, 1st Series, Volume 1.djvu/257

IN EE PETER HERDIC. 249 �To which he answered : "For his individual use he kept no cash-book. For his lumber accounts eash-books were kept. These bocks are at the office." Page. 58. This wituess further testifies : "As I stated before, he had kept lumber books, and that these lumber books are cash-books." Id. Again, in hia examination in chief, he was asked : "Did he keep any indi- vidual cash account?" To which he answered: "He did in his individual lumber books." Page. 59. In the cross-exami- nation of this witness the foUowing questions and answers occur : Question. "Were there regular books of account, cash- books and others kept, showing his transactions in lumber?" Answer. "There were." Page. 62. * * * Q. "Werethose books properly kept, showing the transactions in lumber, in your judgment as a book-keeper ?" A. "Yes, sir." This evi- dence stands uncontradicted. �I now approach what I consider the most doubtful question in the case. On August 26, 1878, three days before the filing of the petition in bankruptcy, by the direction of Mr. Herdie, lifteen pages of entries were made in his books, ail under said date, and aggregating cousiderably more than $1,000,000. Did these entries concern Mr. Herdic's business as a marchant? This, it seems to me, is the vital question, for if they relate to transactions distinct from his business as a lumber merchant, it is immaterial that they were not duly made in the proper course of book-keeping. I fail to discover in the testimony of the witnesses anything to show to what branch of the bankrupt's business the entries in question relate. But an inspection of the books themselves has satisûed me that a large proportion thereof, both as respects number and amount, bave no connection whatever with the lumber business, but relate to other matters. As to the nature of many of the entries I can form no opinion. A few seem to have relation to the bankrupt's business as a merchant, but this I cannot affirm certainly. �The evidence, however, does show that the making oftiiese entries was a transaction entirely free from any taint of fraud. The purpose was to close worthless aceounts, and old accounts long previously settled, but never entered on the books. The ��� �