Page:Federal Reporter, 1st Series, Volume 6.djvu/767

 BHAINWALD V. LEWIS. 15& �man that the former should proceed to the eastem states and Europe to procure, if possible, a large stock of goods on credit. Aware that their credit -would depend upon their financial standing. here, and knowing that, if the true condition of their affairs was disclosed, Mr. Schoenfeld's expedition would proye abortive, they presented to one of the banks of this city a false statement of their profits and business affairs, sustained by false entries in their books as to their profits, and the amount of money loaned to the firm by Newman. Having thus urmly established their credit, Schoenfeld proceeded to the eastern states and to Europe, and succeeded in purchas- ing goods to the amount of more than $30,000, cost priee, Whether, at the time the false credit was obtained, and Mr. Schoenfeld etarted for Europe to make bis purchases, it was the intention of Newman and Schoenfeld to cheat the foreign creditors Out of the whole priee of any goods the firm mighi Bucceed in obtaining by false pretences as to their financial condition, or whether that project was formed after Mr. Schoenfeld's retum, does not clearly appear. It is certain, however, that the preliminary steps for the perpetration of the fraud were taken immediately on bis arrivai. Mr. Schoen- feld returned to this city early in June, 1877. On the suc- eeeding day he met Newman by appointment at their store, where the affairs of the firm were discussed. A subsequent meeting was soon after held, at which Mr. William Bremer, Mr. Hyams, and Mr. Lewis were also present. �For the fuU understanding of the agreement entered into at this meeting some explanation is necessary. The $15,- 000 contributed to the capital of the firm by Schoenfeld had been obtained by him by a loan of $8,000 from an old friend and former employer, Mr. H. Bremer, for which he had given his individual notes. He had paid in, in cash, $2,000. The remainder, $5,000, he had borrowed, on his individual note, from Newman, who claimed that the money belonged to a Mrs. Alexander, by whom it had been placed with him for invfestment. Newman had paid in cash the whole of the $15,000 to be contributed by him to the capital. He had also lent the firm on tho firm'a notes $18,000, These notes ��� �