In re Rothman

The evidence before the master was, in my opinion, sufficient to warrant denying discharge to the bankrupt. Specification No. 3 (which for convenience I hav.e considered first), relating to the deliverance by the bankrupt to the objecting creditor of a materially false financial statement, dated Jan•uary 27, 1929, containing a statement of assets and liabilities which did not state various debts to bis friends amounting to $1,000, and in relianee upon the truthfulness of which the objecting creditor extended credit to him, is proven. In the statement the total business assets were given at $13,305.85, and real estate valued at $35,000 as a fixed asset; while his current liabilities were given at $3,740.55, including merchandise sold on account, $2,000 indebtedness to the bank, mortgage on real estate $12,000. The bankrupt disputes that credit was extended in reliance upon the statement, but the testimony of Clark shows that a credit in excess of $2,-000 was extended after the statement was received, and that the company would not have enlarged the credit if it had not relied on the financial representation. That the statement was false in its indication that the values of the real…