106 F.2d 979 (10th Cir. 1939), 1858, Hedges v. Bushnell

Docket Nº:1858.
Citation:106 F.2d 979
Case Date:October 20, 1939
Court:United States Courts of Appeals, Court of Appeals for the Tenth Circuit

Page 979

106 F.2d 979 (10th Cir. 1939)




No. 1858.

United States Court of Appeals, Tenth Circuit.

October 20, 1939

Page 980

Hugh B. Woodward, of Albuquerque, N. Mex. (J. O. Seth, of Santa Fe, N. Mex., and R. F. Deacon Arledge, of Albuquerque, N. Mex., on the brief), for appellant.

Donald M. Bushnell, pro sec., of Albuquerque, N. Mex. (John F. simms, of Albuquerque, N. Mex., on the brief), for appellee.

Before PHILLIPS, BRATTON, and WILLIAMS, Circuit Judges.

BRATTON, Circuit Judge.

Joseph Walter Hedges filed a voluntary petition in bankruptcy, he was adjudicated a bankrupt, and he seasonably filed his petition for discharge. A creditor objected on several grounds of fraud, also for failure of the bankrupt to keep books of account or records from which his financial condition and business transactions might be ascertained. The referee heard evidence and recommended that the discharge be granted. On review of the evidence adduced before the referee, and without hearing any additional evidence, the court reversed the decision of the referee and denied the discharge for the reason that the bankrupt failed to keep adequate books of account. The bankrupt appealed from that order.

The bankrupt moved from Oklahoma to New Mexico sometime in 1931. He took with him about $3,600 in cash. He had no other property except an old automobile. In March, 1932, he purchased a small tract of land with a five-room adobe residence on it in the village of Pecos, New Mexico, for which he paid $1,500 in cash. He lived in the residence, and he erected a small adobe structure on the land where he operated a gasoline filling station. He later began operating a like station at Santa Fe, and he subsequently began operating two at Gallup and one at Grants. All of the stations were of adobe construction, and all of them except the one at Pecos were on leased land for which nominal rentals of $5 to $15 per month were paid. The business was conducted in the name of Hedges Independent Oil Company. The gasoline for all such stations was purchased from a refinery at Artesia, New Mexico, and transported by truck to the several stations. The bankrupt maintained accounts in two banks, one at Gallup and one at Santa Fe. Some of the money accruing at the filling stations was deposited in bank and some was used in paying accounts. Accounts were usually paid by check. His records...

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