In re Atlas
| Decision Date | 13 April 1914 |
| Docket Number | 21447. |
| Citation | 219 F. 783 |
| Parties | In re ATLAS. |
| Court | U.S. District Court — Northern District of Illinois |
This trouble comes up on a motion to approve the report of the referee recommending that the discharge of the bankrupt be denied. That report shows that two specifications were made in the formal objections to the discharge: First, that the bankrupt concealed goods with the intent to hinder, delay and defraud his creditors. Second, that the bankrupt failed to keep any books of account. So far as the second specification is concerned, no evidence was introduced before the referee. The referee finds in his report that, about two weeks before the bankruptcy proceedings, the bankrupt had a conversation with one of his creditors and the creditor's attorney, and that the bankrupt then, in answer to a question, stated that he had goods of the value of $7,500 or $8,000. The bankrupt denied ever having made any such statement, but did testify that when the petition was filed he had a stock valued at $3,500 only. The referee found that the preponderance of the evidence was against the bankrupt and denied the discharge.
Herman Frank, of Chicago, Ill., for petitioning creditors.
B. M Shaffner, of Chicago, Ill., for bankrupt.
CARPENTER District Judge (after stating the facts as above).
In support of the discharge, it is urged that inasmuch as the first specification involves moral turpitude, and, if proved, would render the bankrupt liable to criminal prosecution, the facts should have been proved beyond a reasonable doubt.
This is a civil case, and notwithstanding the evidence might not be sufficient to convict, if the bankrupt had been indicted and put upon trial for the criminal offense of concealing assets on the eve of bankruptcy, it may be sufficient to support the denial of the statutory discharge. A preponderance is enough. The facts need not be proved beyond a reasonable doubt. See United States v. Regan, 232 U.S. 37, 34 Sup.Ct. 213, 58 L.Ed. 494.
The real question involves the character of the evidence. It preponderates clearly that the bankrupt, some two weeks prior to the filing of the petition, stated that his stock of goods was worth $7,500 or $8,000. The only evidence in the record is as to whether or not that statement was made. The creditor and his attorney said that it was; the bankrupt denied it. Assuming that the evidence shows that such a statement was made, it does not follow that the...
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