Page:Federal Reporter, 1st Series, Volume 5.djvu/737

 IN BE TEBNIA. ���725 ���eales made on a credit, which appear to be very imperfect. It is true that the law does not require a merohant to teep his books after the most approved methods of book-keeping, but it does require that hiS accounts shall be so kept that a competent accountant can, from the books themselves, ascer- tain his true financial condition. If this can be done, the form in which they are kept is of no consequence. Be Arehen- broion, 12 N. B. E. 17, and cases cited ; Re Antisdel, 18 N. B. E. 290. �There may bave been in his store, in the shape of invoices and other papers, such memoranda of the facts that proper accounts could have been made up by extraordinary efforts to disentangle them ; but this will not do. He must by his books, and the entries in them, under proper accounts, how- ever informai, be enabled to show the condition of his busi- ness. The books relied on here do not corne up to this requirement. �The other specifications are very informai, and, on de- murrer or exception, would not be held sufficient, because they do not, by requisite averments, show that the ereditors had knowledge of the insolvency of the bankrupt, or reason- able cause to believe it, and knew a fraud on the law was intended. But they were not objected to by the bankrupt, and, having taken issue on them, it is now too late to make that objection. The proof abundantly shows that he was insolvent, and that the ereditors knew it, and intended to take an unlawf ul preference. It shows, on the part of the bankrupt, a most reckless disregard of the rights of his ered- itors, and his obligations to the bankrupt law, if he desired ite beneflts. The fact that his goods had been levied on by execution did not relieve him, from these obligations. , The sheriff acquired title to sufficient goods to satisfy.the execu- tion, but there were largely more goods than would satisfy it, and it was the duty of the bankrupt to protect them, instead of inviting or permitting his ereditors to help themselves to such as they wanted. �Let an order be entered denying the discharge. ����