Page:Federal Reporter, 1st Series, Volume 10.djvu/389

IN RE WARNE. _ 377 �In re Warne, Bankrupt.* (District Court, E. D. Pennst/lvania. January 10, 1882.) �1. DlSCHAKQE— FrallD. �The fraud contemplated by thc statuts as a bar to the bankrupt's discharge is fraud in fact, involving moral turpitude — intentional wrong. �2. Samb. �In the a\isence of proof of such intentional wrong, the failure of a bankrupt to deliver over to the assignee property which lie had given to his daughter will net bar his discharge, even though the transfer to the daughter may have amounted to constructive fraud, and havc beon void as against creditors. �3. Failure to Producb Bocks— Peii jury. �The fact that af ter the bankrupt testlfled that he had not kept certain books of account, he found and produced such books, will not bar his discharge, it not appearing that there was intentional false swearing, or any motive for conceahncnt. �In Bankruptcy. Exceptions to regis ter' s report upon an applica- tion for discharge. �One of the specifications against the discharge was that the hank- rupt had not delivered to the assignee a horse, phaeton, and harnesB belonging to him. On this point the register reported as follows : �" The horse, phaeton, and harnesa are also oharged as being the bankrupt's property, and not delivered to the assignee. Of this the bankrupt says: ' The horse called ' Major,' this my daughter claimed. That is not included among those I testified to. It is not in my schedules, nor in the appraise- ment list of the assignee. I guess my daughter bas that horse now. She also claimed the phaeton, which she still has, and the harness.' Again : ' I am agent for my daughter. She is a young, unmarried lady, living with me. She is of age, I think, 22 or 23.' In this connection it is proper to refer to the fact that the f arm was bought by Warne's mother-in-law ; the horse, and a stallion, by his wife. Now, in relation to all these transactions by the three generations of ladies, — the mother-in-law, mother, and daughter, — it is difficult for the register, with the light before him, to pass judgment. If the means which acquired the bulk of the bankrupt's estate are derived from their separate estates, or independently of the bankrupt, then they had as much right to buy as strangers; if from the bankrupt, then they belong to the assignee, and one effect of this non-delivery is to prevent the bankrupt's dis- charge. Xeither the opposing creditors nor the bankrupt lias probed this matter to the bottom, the former contenting themselves with showing that Mrs. "Warne paid $1,000 for the stallion in cash, and that the daughter kept the horse and phaeton. Underthe ordinary presuraptionthat property found la possession of the head of the family was paid for with his means, it seems that it was Mr. Warne's plain duty, when his attention was called to these �' «Reported by Frank P. Prlchara, Bsq., ol the Philadelphia tar. ��� �