IN ma wxrimams. 31
» the notes were received appeartherein. The bill-book contained nothing relat-
ing thereto, except some lead-pencil entries in the back ofthe book. The
bankrupts had lost over $30,000. in less than three years, and their goods were, at
the time of their bankruptcy. 1111der execution upona judgment confessed to
the creditor from whom they had received the notes.— .,Held,, that the failure to
enter these note transactions intheir bookswas a iailureto keep proper books
· of account, and would prevent their discharge. ` · i   "
Exceptions to the report of a register upon an application for a V
discharge. `
The register had reported that the bankrupts had commenced bus-
iness October 1, 1873, with a capital of $8,000, and stopped July 5,
1876; that whenrthey failed they.owed‘·one‘*Christopher Heebner » ‘
$8,500, on acceptances; that they had receivedfrom said Heebner
and had procured to be discounted notes and drafts to the amount of ·
$42,881.79, of which the said sum of $8,500, wasunpaid at the time of r
their failure`; that neither their ledger nor’cash~book showed either the
receipt of any such sum of money or the disbursement thereof, nor did
Heebner’s name appear therein; that of the sum of $42,881.79 re-
ceived from Heebner, $23,581.79 thereof was said to be composed of "V
certain, lead#pencil entries made in the back of the bill-book; that
nothing appeared in connection therewith on the book to show
Heebner's relation thereto; that in view of the fact that the bankrupts I
failed for $23,900, and lost $8,000 capital in addition, in less than `
three years, and were under a levy of Heebner’s, havingconfessed
judgment to him, their stock of goods on hand at the time not
amounting to over $7,000, the register was of opinion that their
failure to enter on their books the disposition of so large a sum as
$42,881.79 was ground for refusing them their discharge, as not
having kept proper books of account. To this report the bankrupts
excepted. I _ ` “ `
David C'. Harrington, for bankrupts. ,
· Richard P. White, for assignee.
Burman, D. J. Looking at this case with a desire to relieve the ‘
bankrupts, if it be done consistently with justice to others, I find ,
myself compelled to sustain the register’s report against them. Very
great liberality has been exercised by the courts in construing and
applying the statutory provision requiring merchants and trades- .
men to "keep proper books of account, "—so great in some instances l
as almost to nullify the law.» There is no hardship in enforcing this
provision. Its purpose is to require dealers to keep such accounts `
as will exhibit their business and standing not only to themselves,
but also to their creditors, before and after failure. This is not