The New York herald., 1876-09-10
How Insolvent Merchants Attempt
to Defraud Their Creditors.
THE NCONVENIENCES on A BAD REPUTATION
Curious Conflict of Veracity in
the Witness Box.
The Prospect Of Better Times Hoped For
by the Courts.

Some new facts in connection with the bankruptcy
proceedings pending against Ferdinand Enrich and
Solomon Steineld were made public yesterday. II
seems that Leo Frank deputized on behalf OF the re-
cciver OF the bankrupt firm, went 10 Towanda Pa,
for the purpose ascertaInng Tho condition OF the
company's assets claimed to be in possession OF Stern
Brothers. in that place. Mr.. Frank states that he
called upon lrm OF stern Brothers and asked them
in what manner they claimed hold tho goods seat
to them by the bankrupts during the months of July
and August 1876. lie says they refused to give HIM
any information about 1t, and acted such
induced him TO believe that they
were attempting to msead him. lie says, further,
that he saw a large stock OF goods advertised by the
in the Bradford Republican, date August 81, which
Shey offered TO sell at cost price; that they have
seventy OF goods from the bankrupts
and they have In their cellar about sixty cases.
packed and cased in the same packages and
wien delivered TO the pankrupts by their creditors
that the stock trade OF the Stern Brothers does
exceed 50 O00 that he has been crediby informed
that Their whole capital does not exceed $4,000 lie
SAYS further that A. b. Brown, of Pttston, Pa has
cheap establishment there called the Dollar Store that
he received from the bankrups, from the 23d OF July
TO the 9th of August, 1916, tbjrty-three cases
of goods, and from the 18th of August
to the 22d of August of
goods from Stern Brothers, and he says, further that
on the I'd OF September he served ON A. b. Brown
copy the demand together with the order appointing
a receiver these proceedings, and that he also re-
fused to give him any information whatever, and that
be rs informed that the said cases In Browns
cellar.
Melville II. Kcgensburger that within n few
DAYS past part OF these goods have been reshpped to
New FORK In the original packages TO Stern Brothers
this city, and that Stern Brothers shifting
their goods vario:s auction houses, he is in
formed. for the purpose OF preventing the receiver
from gaining OF them he that he tailed
to obtain possession OF their books and he has advised
The receiver to bring an action against them after
ssccrainng the praccabilty of such course; he
further, that unless he obtains possession of their
books that neither hc nor the receiver obtain
papers upon which TO proceed lie therefore, behalf
OF the receiver and pettoning CREDITOR asks that
injunction issue out OF the United States Court
ranng Stern Brothers from dsposng Of said property
and Tor order to examine the debtors, and for
order compelling the sheriff 20 produce the books OF
The debtors and allow inspection thereof tor the
purpose OF preparing Tor the action.
He further states that at the time OF the issuing or
the TO show cause IN the petition filed August IT,
order OF arrest granted against the debtors,
that Ehrlch is concealng himself AT his house. with
the view 10 prevent such arrest Steinfcd has been
arrested; that the receiver has notified Stern Brothers
deliver up the goods and that they have dsrcsarded
the order Upon this statement of facts the Court has
granted the various requests mentioned above