Milo Turner v. Irving Bass, Trustee in Bankruptcy of Milo M. Turner, Bankrupt

The order of the district court affirming an order of the referee in bankruptcy refusing the appellant a discharge in bankruptcy is affirmed.

The trustee formally objected to the bankrupt’s discharge under Section 14, sub. c(3) of the Bankruptcy Act upon the basis of a written financial statement he had given the agent of Vanadium-Alloys Steel Co. some eleven months before the adjudication of bankruptcy. Taking the evidence, as we must, most favorably in behalf of the appellee there is an abundance of proof that the statement was fraudulent and that it was relied upon by one Stemmier who forwarded it to bis principal, Vanadium-Alloys Steel Co. Upon the basis of the statement, Stemmier urged his principal to give credit to Turner’s company, Zip-co. The record shows the sole decision for the giving of credit rested with one Burns George, vice president of Vanadium in Latrobe, Pennsylvania. There is enough evidence to draw an inference that George relied on it. There is no direct evidence that he did. It might be in an action of fraud and deceit at common law we would hold that there was a failure of proof on the element of reliance. But we are satisfied that the “provided” clause…