Klein v. Powell

• Citation: 174 F. 640
• Decision Date: 29 November 1909
• Docket Number: 37.
• Parties: KLEIN v. POWELL et al.
• Court: United States Courts of Appeals. United States Court of Appeals (3rd Circuit)

174 F. 640

KLEIN v. POWELL et al.

No. 37.

United States Court of Appeals, Third Circuit.

November 29, 1909

L. C Barton, for appellant.

Charles A. Woods, for appellees.

Before GRAY, BUFFINGTON, and LANNING, Circuit Judges.

GRAY Circuit Judge.

On August 7, 1907, a creditors' petition was filed against John F. Klein, the appellant, on which he was, on August 24 1907, adjudged a bankrupt. On January 28, 1908, he presented his petition for a discharge, and the customary order was made returnable February 28, 1908. On this return day, a claim, which had been proved and allowed by the referee October 11, 1907, was assigned to Powell, the appellee, who thereafter, within the time allowed by the referee as a party in interest, made several objections to the said discharge all of which thereafter were disallowed by the referee except the fifth objection, which is, that the said John F. Klein concealed from his trustee the sum of $85.10, which he received on or about December 31, 1907, proceeds from a policy of life insurance or deposit for premium made thereon prior to bankruptcy. This objection was sustained by the referee in bankruptcy, as special master, in the following language:

'It appears that on or about the date specified, the bankrupt received from the insurance company the sum of $85.10, to which his trustee was clearly entitled, and that he used it for his own purposes in paying a pressing bill for rent, in spite of the advice of his counsel.'

Section 14b of the bankrupt act (Act July 1, 1898, c. 541, 30 Stat. 550 (U.S. comp. St. 1901, p. 3427)), provides that the application of a bankrupt for a discharge shall be heard, with such proofs and pleas as may be made in opposition thereto by parties in interest, and that the applicant shall be discharged, unless he has (1) committed an offense punishable by imprisonment, as herein provided. This provision is found in section 29b, as follows:

'A person shall be punished by imprisonment * * * upon conviction of the offense of having knowingly and fraudulently concealed while a bankrupt or after his discharge from his trustee any of the property belonging to his estate in bankruptcy.'

We have carefully examined the testimony contained in the record, and have failed to find any evidence that the money received from the insurance company by the bankrupt, was 'knowingly and fraudulently concealed by him. ' On the contrary, it appears that he had, long before his...