In re Wilcox (C. C. A. 2nd Cir.), 6 Am. B. R. 362, 109 Fed. 628, 48 C. C. A. 567. See, In re Magen & Magen (D. C., Pa.), 33 Am. B. R. 346, 218 Fed. 692. Such testimony of bankrupt is admissible as admissions against interest. In re Goodhile, 12 Am. B. R. 380, 130 Fed. 782. In re Leslie, 9 Am. B. R. 561, 119 Fed. 406. Form No. 332 REPORT OF SPECIAL MASTER ON SPECIFICATIONS (Hagar and Alexander's Bankruptcy Forms [2d Ed.], No. 280.) United States District Court, I, the undersigned, referee in bankruptcy, to whom as special master the issues upon the specifications herein were duly referred, to ascertain and report the facts, respectfully report as follows: That the said issues were brought on for hearing, and I was attended upon said hearing by the counsel for the opposing creditor and the counsel for the bankrupt, and that testimony was adduced thereon, the stenographic minutes of which are herewith filed. That the specifications were filed on behalf of a creditor, and are substantially as follows: , 1. That the said bankrupt knowingly and fraudulently concealed from his trustee, etc., property belonging to his estate in bankruptcy, to an amount of about $. alleged to have been realized by ..... him from the sale of stock bequeathed him. 2. That he knowingly and fraudulently concealed, etc., other property belonging to his said estate in bankruptcy, consisting of his salary of $... per year, paid to his wife and alleged to have been held by her for said bankrupt. 3. That he knowingly and fraudulently made false oath in these proceedings in omitting from his schedules, the above mentioned property. 4. With intent to conceal his true financial condition and in contemplation of bankruptcy, he destroyed certain records, etc. 5. That with like intent and in like contemplation, he failed to keep books of account, etc. 6. Knowingly and fraudulently made false oath in omitting from his schedules $..... alleged to have been in his possession or under his control. The testimony shows, in substance, that in or about the year the bankrupt received by bequest the following: that he disposed of said property from time to time and received therefor about $........ The bankrupt testified as follows: .... The bankrupt's wife testified as follows: Findings of Fact The only witnesses produced were the bankrupt and his wife, and their testimony is uncontradicted. There is therefore, no direct evidence that any other disposition was made of the property than to which the bankrupt testified, and the claim that that amount or any considerable part of it, is still in the bankrupt's possession seems to rest chiefly upon the improbability of their testimony. No attempt was made to contradict the statement of losses in stock speculation by calling the broker through whom said speculations were had, or other witnesses. The bankrupt's account in the bank tends to corroborate his testimony, showing, as it does, that he . expended over $...... between .. 19..., and 19..., during which period he had no source of income excepting this bequest, and his stock speculations. I recall nothing in the testimony before me which would justify a finding of fact that any part of the proceeds of this property is in the hands of the bankrupt and concealed from his trustee, and the same remark applies to the sum of $...... or less which the bankrupt received as the proceeds of real estate devised to him by his father. I am confirmed in this opinion by the statement in the schedules in which of the total liabilities, over $........ appears to have been. for money borrowed by the bankrupt, and with the exception of $........ borrowed by the bankrupt during the year 19... In regard to the payment of the bankrupt's salary to his wife, the testimony of both the bankrupt and his wife is as follows: The bankrupt did not, it appears, keep books of account, but inas. much as the testimony shows that prior to his present employment, he was in no business, and that in his present employment on a salary there seems to be no occasion for keeping a set of books, I do not think his failure to keep such books can be considered as militating against his discharge. So also as to the alleged destruction of the books referred to in the fourth and fifth specifications; while the bankrupt admits that he destroyed some memoranda of stock transactions, I see no evidence from that fact, or elsewhere in the testimony before me, of any intent on his part to conceal his true financial condition by so doing. Conclusions of Law For the foregoing reasons, I am of the opinion that the specifications have not been sustained, and that the bankrupt is entitled to his discharge. All of which is respectfully submitted. 19... Referee in bankruptcy, as [Contra, if findings of fact against bankrupt.] In Southern District of New York "Record on Objections to Discharge" should be arranged as follows: 1. Appearances. 2. Specifications. 3. Exceptions (if any). 4. Notice of Hearing and Proof of Service. 5. Testimony. 6. Report. Report of referee or special master. Referee should find the facts and state his conclusions of law. In re Steed and Curtis, 6 Am. B. R. 73, 107 Fed. 682. When insufficient. In re Lenweaver (D. C., N. Y.), 36 Am. B. R. 73; 226 Fed. 987. Special Master should pass upon all the grounds of objection set forth in specifications. In re Haskell (D. C., N. Y.), 20 Am. B. R. 914, 164 Fed. 301. Duty to hear the testimony of witnesses. In re Rubin & Lipman (D. C., N. Y.), 32 Am. B. R. 295, 215 Fed. 669. Should not base a finding upon the original examination of the bankrupt be. * fore him as referee. In re Murry (D. C., Conn.), 20 Am. B. R. 700, 162 Fed. 983. Duty to exercise independent judgment thereon. In re Cohen (D. C., N. J.), 26 Am. B. R. 544, 192 Fed. 751. In Southern District of New York it is referee's duty to take and report the testimony with rulings thereon, and he may reserve decision as to admissibility of testimony in certain cases. In re Knaszak, 18 Am. B. R. 187, 151 Fed. 503. When exceptions to report of Special Master should be filed. (Washington Rule.) In re Pierce, Jr., 32 Am. B. R. 96, 210 Fed. 389. Rules governing in Connecticut. In re Walder, 18 Am. B. R. 419, 152 Fed. 489. Form No. 333 ORDER OPENING DEFAULT ON DISCHARGE PROCEEDING (Hagar and Alexander's Bankruptey Forms [2d Ed.], No. 281.) At a stated term of the United States District Court for the of ...... District held at the United A motion having been made to reopen the default herein and to restore the bankrupt's application for discharge to the calendar of .... this court, and the same having come on for hearing, now, upon reading and filing the petition of bankrupt herein, duly verified, the notice of motion and the petition for discharge herein, dated ... 19..., and the order to show cause 'thereon and all the proceedings heretofore had herein, and after hearing attorney for said bankrupt in support of said motion, and motion of in opposition thereto, it is on attorney for bankrupt, Ordered, that the application for discharge herein be and hereby is re-opened and the clerk of this court directed to restore same to the call calendar for discharges for 19..., with leave to creditors who have filed notices of appearance herein, to file specifications of objection upon the merits. ...... D. J. Form No. 334 ORDER DENYING DISCHARGE, AFTER REFERENCE TO SPECIAL MASTER In the District Court of the United States for the District rupt, for a discharge herein, and a specification of objection having been filed thereto by a creditor and party in interest, and such specification having been referred to ..... Esq., as special master, to ascertain and report the facts with his opinion, and such special master having reported and recommended that such specification be sustained, and exceptions 91 to such report having been duly filed by said bankrupt, and the same having been argued; now, on motion of 91. If no exceptions were filed, leave this clause out. For practice on ex ..., Esq., attorney for ceptions, see Equity Rules LXXXIII and LXXXIV. |