The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-06-02
FRIEDMAN MUST DISC ORGE.
The Bankrupt Promoter of Fire Sales Or
dered to Pay His Creditors S3i ,bs..

The Bankrupt Promoter OF Fire Sales Or
dercd to Pay His Creditors S3i ,bs..
Adolph Friedman. who had fire sales stores
at East Fourteenth street and on Eighth
avenue near Twenty fourth street. .has been
ordered by Referee in Bankruptcy George
{. Holt to pay to the trustee elected by his
creditors S3l .5SI. Friedman in his eXamiua-
tion. at the Instance Of llumenstiel d lIirsch.
attorneys for the trustee. gave as one Of the
reasons for the disappearance of large
amount o! money which he drew from the
bank that he lost Sl".5S1 in a Fourteenth
street ear a few days before his failure. As to
the rest of the money he asserted until near
the close OF his examination that he had used
1t In his business. but when cornered he as.
serted later that he had paid part OF 1t to
Frank Ransom. proprietor OF a club. The
referee in his opinion says:
1T is possible. of course. to lose money cut
OF pocket and t. pay 1t away in business and
in gambling without keeping any record Of
such payments But when bankrupt admits
the month before his bankrupt while he was
hiding from his creditors. and gives such an
inherently improbable account OF what has be-
come OF II. entirely unsupported by other wit
nesses, It lie essential that all his testimony
upon material subsidiary points should DO
truthful and that he should satisfactorily eX-
plain all the sus picious circumstances sur.
rounding the transaction which are capable OF
explanation. But In my Opin Ion the bankrupt
upon his examination has given In various in
stances wifully untruthful evidence and has
failed TO explain satisfactorily the most suspi-
cious attending circumstances"
Friedman testified In his eXamination.that
he opened an account in the Fourteenth Street
Bank in,November and closed it.in December
and that Immediately after he closed It he
threw the bank book and vouchers IN the
waste basket. lie repeatedly answered that
he could not remember the last check which
he drew on that bank. out when Blumenstiel
Il Hrssh produced a transcript of Friedman 5
account with the bank he then remembered
that he drew out Slo.oSl in currency ON Dec.
3 last. which he claimed he lost out of his
pocket on the same day in'returning from the
bank to his store.
Regarding this story the referee saws:
Such story is practically incredible on its
face. and when all the circumstances in this
case are taken into consideration | cannot
avoid the conclusion that II Is Il pure fahrica-
ton. | have no doubt that Friedman opened
to be able to draw out the deposits in cur
rency. that the quarrel with the cashier was
sham quarrel on Fredman's part. got up to
explain the closing Of the account. that all the
money drawn from the Fourteenth Street
Bank and collected on bearer checks was OBJ
tanned in contemplation of bankruptcy and
with the fraudulent intent Of hiding II from his
creditors and that the money or the substan-
tial part Of It Is now hidden somewhere in his
possession or under his control
The referee has concluded. with much hesi-
tatlon. he says. to allow a deduction Of $1,000
for money alleged to have been lost In gam
bling, but AS TO the residue. amounting to
granted, This is said to be the most imror-
tant decision yet rendered under the ban K rupt
act. and II Friedman does not pay up II means
imprisonment Tor him.