The Providence news. (Providence [R.I.]) 1891-1906, 1902-04-10
Gambling Bankrupt Is Sill R.
sponslbls for Debts.
HIS LIABILITIES ARE s972,S7S
Spent $150,000a Year and Gambler; G,i
the Money That Belonged 10 Creditors.
Refuses 10 Testify.

New York, April 10.-Through a decision
handed down yesterday by the United
States circuit court OF appeals, the appli-
cation of Arnold Feldstein To be dis
charged in bankruptcy and released from
s972.S's of debts is denied. The court
holds that Feldstein made his application
with fraudulent intent
Feldstein was silk merchant at No. Al
Mercer street His downfall was attrib-
uted to his gambling propensites. He
was a heavy PLAYER in Richard canheld's
place. In East Forty-fourth street. and in
Alonzo C. Maynard's establishment. in
West Forty fourth street
But now when his testimony Is desired
i'm an action to recover about $4,000 from
Maynard, Feldstein cannot be found. He
is known to be in Europe. but cannot be
creditors
Seldom has II been that the United
States circuit court of appeals has rem
dered such decision as that OF yester-
day. Feldsteln is denounced for alb
stractng money from his business to pay
his gambling debts. The court holds that
this money rightfully belonged to his
creditors.
bankruptcy on May :. 1900 He gave his
liabilities as s952.ss7 aud his assets as
s195936. The creditors made every effort
TO prevent him from receiving a discharge
from his debts. and former Judge Ernest
Hall was appointed referee In bank
ruptcy Mr.. Hall decided against Field
stein, as did the United states district
court
Then Feldsteins lawyers carried the
case 70 the United States circuit court OF
appeals. Now comes the latter court
with decision in which II says:
According 10 the report of the referee,
Feldstein had an Indebtedness over hts
assets OH Jan. /, 1898. of more than $4,000:
by Dec. u, 1888, this had been Increased 10
s3d0. 900 and on May 1. 1900. Ia over 5000
In addition there were debts TO his family
of fully $4,000 From Sept ~. 1898. TO
April II, 1900 the petitioner was hopecssly
insolvent. set I'm that period he lost In
gambling houses i'm New York at roulette.
faro and other games OF chance more than
100000, and paid this sum out OF money
drawn from his business, well as about
$4,000, which he had lost i'm stock specu-
lation. knowing he could not meet his
stock speculation in hopes of retrieving
his losses. but went from bad to worse
and rapidly used up his assets and the
money OF his creditors.
Referee Halls report then showed that
Fedstein was habitue of Canfields
gambling house and other places Of the
in April. 1900 he paid out $40 500 i'm checks
for gambling debts One was for 1852,
and payable to Canield This payment
was made a week before Feldstein filed
his petition i'm bankruptcy and on the day
he consulted his lawyer about rling the
petition.
Alonzo c. Maynard. when called. refused
TO testify about keeping a gambling house
In West Forty-fourth street, because his
testimony might tend To incriTninate and
degrade him" I'm regard to Feldsteins
gambling the United States circIit court
of appeals said yesterday:
For at least a year previous to his
failure his condition was one OF such In
solvency that he must be presumed To
have known it--indeed. the only charitable
explanation OF his testimony Is that dur
ing that reckless or penal plunging he
was chcrishing the hope that some run OF
luck at the gaming table would bring him
money outside his business operations
which would enable him To restore his
depleted assets" The records show that
In less than two years Feldstein spent
over 100000 for individual purposes"