The Providence news. (Providence [R.I.]) 1891-1906, 1901-05-17
WAS REFUSED A
A DISCHARGE.
Judge Would MOI Release Fold
stein From Bankruptcy.
LOST $4,000 IN GAMBL ING.
His SpsculatIons In Stocks Cost Him an
Additional $4,000 Referee Reported
Books Were Improperly Kept
LOST $4,000 IN GAMBLING.

New York, May l7.--Judge Brown OF the
United States District court, has denied
discharge IN bankruptcy TO Arnold Field
stein a. Co, who did business as \.
Feldstein Co, importers OF raw silks.
az No. Al Mercer street Feldstein filed "A
petition in bankruptcy on May IL, 1900,
with liabilities Of 1927 S97 and assets sl95.
636. Blumeustiel d fftrsch opposed his
discharge on behalf Of IL Zellweger a.
Co. of Basic. Switzerland the largest
creditors.
Their examination OF the bankrupt and
his affairs revealed that Mr. Feldsten
lost $4,000 IN gambling and $1,000 I'm stock
speculation I'm Wall street, and that his
business books were not Kept properly.
The discharge was refused on account
OF not Keeping his books properly. Judge
Brown. In confirming the report OF Err
nest Han. referee iu bankruptcy. said:
Upon examination of the evidence and
books In this case ] am entirely satisfied
that the discharge OF the bankrupt should
be denied, on the grounds stated by the
referee In his admirable opinion.
DECEPTIVE BOOKKEEPING SYSTEM
Il will ony add that no system OF book
keeping, as IL seems TO me, could be de-
vised that would be more calculated 20
mislead and deceive persons referred 10
the books for Information as the capital
the bankrupt invested in his business,
which. under this system of bookkeeping
appeared at all times to be much larger
than IL was i'm fact
Referee Han. In his report. said that he
found the bankrupt WAS insolvent 10 the
amount of $150O1 on May !. lSsN. snd 20
more than 100000 on May l. 1909 Be
tween September ~ 1895 and April II.
1890, during which time he was hopelessly
insolvent. Mr.. Feldstein lost in gambling
az roulette and other games OF chance
more than Si60, ,o00 la gambling houses I'm
New York and paid the same out OF mon
eys drawn from his business ia addition
to about $4,000 fost IN speculatiOns in
stocks. As under the bankrupt act these
losses furnish no ground for refusing a
discharge. nor have they been noted here
for any such purpose, the referee refers
TO them only i'm connection with the very
peculiar methods Of bookkeeping adopted
by the bankrupt
PLUNGED INTO GAMBLING.
The referee is convinced from the evil
dence that i'm isg& the bankrupt knew he
was insolvent and turned to gambling and
stock speculations in the hope Of retriev-
ing his losses, but he went from bad 20
worse. and rapidly used up his assets
and the money or HIS creditors.
Referee Hall also said In his opinion: 81
think that for the last two years the
bankrupt simply plunged headong with
all manner OF gambling without thought
for his creditors and did his best to con
ceal the real facts from them. and only
ceased when there was nothing left To
gn mble with"
Tn conclusion the referee said that 'it
seems 20 him that it has been clearly
demonstrated that the bankrupt, with In
tent 20 conceal his true financial condition
and in contemplation of bankruptcy. has
failed 60 keen books OF accounts or rec
lrds from which his true financial condi-
ion could be ascertained. and that the
irst speculation is sustained by the evil
lence and the discharge should he re-
used"
Blumenstiel & Hrsch said yesterday af-
ernoon. thet as attorneys for Charles M
Tough. trustee I'm bankruptcy OF Mr.
Teldstein. they had brought a suit I'm The !
'upreme court against Richard A. Canhed |
o recover SIS 200 which II is claimed was |
ost I'm Mr.. Canield's place. on Fortv |
ourth street. near Fifth avenue. and the |
use is now on the calendar ready for |
rial