Page:Federal Reporter, 1st Series, Volume 1.djvu/253

 The third and fourth specifications relate to the alleged concealment by the bankrupt of certain personal property The third specification charges that the bankrupt has concealed and failed to deliver to his assignees $25,000 which he received from Jacob Tome a few months before the filing of his petition in bankruptcy. The fourth specification charges the like concealment of and failure to deliver to the assignees the sum of §10,000, which it is charged the bankrupt delivered to his friends to purchase at sheriff's sale, for his use and benefit, his household goods and other property, and that the money was so applied.

It appears that on January 24, 1878, Mr. Herdic received from Jacob Tome the latter's notes for $25,000, given in the purchase of certain bonds issued by the Minnequa Springs Improvement Company. On or about that date Herdic discounted Tome's notes at Philadelphia. Out of the proceeds Herdic paid $10,010.69 to the Manufacturers' National Bank of Philadelphia, in discharge of his indebtedness to that hank. This is proved by John W. Moffly, president of the bank. Mr. Herdic testifies to other proper payments, in discharge of his liabilities, made with the moneys realized from the discount of the Tome notes. After these payments there remained in his hands about $10,400, which he brought to Williamsport. At that time W. P. E,eynolds & Co., the plaintiffs in a judgment against Herdic, had an execution for $10,000 in the hands of the sheriff of Lycoming county. This execution had issued January 22, 1878.

Undoubtedly, the evidence shows that it was originally the intention of Mr. Herdic to apply the $10,400 he brought from Philadelphia to the Reynolds execution. But he soon found himself hopelessly pressed by other creditors and abandoned his purpose to pay off Reynolds & Co.'s judgment. He testifies that he applied the whole of the $10,400 to the payment of debts and to the maintenance of his family, and that it was all so used within two months after he got it, To some extent he particularizes his expenditures. It certainly would have been more satisfactory had his testimony on this subject been more explicit. He swears positively, however, that no