The Providence news. (Providence [R.I.]) 1891-1906, 1898-10-08
A Creditor of Mr.. Will :
liams Contests
RELEASE AS AN INS0LVENT
Failed to Keep Books Showing Con-
dltl0n of Business,
CASE HELD FOR AMUSEMENT.

Whether one who makes an assign
ment Tor the benefit of his creditors
can afterwards be granted a discharge
under the insolvency law was an inn
portant question in case heard by
Judge Rogers in the appellate division
of the Supreme Court today. l. Il. Will
liams, a grocer, was a petitioner for a
discharge i'm insolvency. Dexter Il. Pot
ter represented the petitioner. and ST.
mon 5. Lapham, George M. Griffin,
creditor of Mr.. Williams, who objected
to the granting of the discharge on the
grounds that the petitioner for a period
of four months prior to his being de-
clared an insolvent had not kept proper
books of account or papers from which
the condition of his business could be
ascertained. with intent TO defraud his
creditors; that the petitioner had con-
veyed his property To his wife To de-
fraud creditors and because on June %
the petitioner made an assignment OF
all his property to Dexter II. Potter
with intent TO evade the insolvency
law.
Mr.. Williams testified he had kept
books in his business from the time he
started in trade, some % years ago, up
TO the time he was declared insolyent
and turned over all his books TO the
assignee. He denied transferring any
of his property TO his wife. but admitted
he made an assignment to Mr.. Potter.
On ross-eXamination Mr.. Williams
said the date of his assignment was
June %, 1896. and he ran the store as
the agent of Mr. Potter from that date
m hn ~ fG In fa
relief in insolvency on July /, 1896. Mr..
Lapham asked witness If he made a
statement to Bradstreets in March,
1896. and Mr.. Potter objected. but Judge
Rogers admitted the question after MIR.
Lapham had stated that the creditors
were paid but seven cents on the dollar.
Mr.. Williams admitted thathe made a
statement to Bradstreet's which showed
he was worth $1,000 above all liabilities.
In answer to other questions he said
he owed about $2400. and the stock he
carried generally amounted from $500
to $500; that never during the entire
time he was i'm business did he keep
cash book or any book which would
show the amount OF cash he received or
paid out, and admitted that the only
books he kept We're books containing
the name OF parties he sold goods to
on credit.
Judge Rogers asked the petitioner
why he did not keep a cash book and
the reply was that he had followed the
custom of a man with whom he had
been in business. Mr.. Lapham asked
witness how il was that in his state
ment to Bradstreets he stated his in
debtedness was $1,000, which at the time
he became insolvent was S2400.- Mr..
Williams could not explain il.
Mrs. Williams, wife of the petitioner,
testified her husband had not trans
ferred any property TO her. and a horse
the creditors accused him OF giving her
she bought six years ago, and the car
riagc used with the horse she had ex-
changed - years ago for carriage her
husband gave her as wedding present.
There was no evidence introduced by
the remonstrant. but Mr.. Lapham
called attention TO the fact that the
fixtures in Mr.. Williams store were
valued i'm the Bradstreet statement at
$3.50, while i'm the schedule filed in court
he appraised the fixtures al $50.
Mr.. Lapham argued that no one who
made a voluntary assignment could
have discharge in insolvency, as the
assignment Inade il impossible for the
insolvents estate TO be administered
under the insolvent law. He also
claimed that Mr. Williams had made
false statements Of his books with in
tent to defraud creditors.
Mr.. Potter claimed that no intent IN
defraud was proved by the failure tn
keep books. and I'm this case no intent
had been shown. for the books had been
kept for the four months previous to
the assignment as they had been kept
for % years. Mr.. Potter also said that
the assignment warded off attachments
and there was no fraud i'm ".
Judge Rogers held the matter for ad-
visement.