Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-02-03
penney CASE,
Referee Little Sustains His
Former Opinion
That Bankrupt Be Ordered 10
Pay Over $3.50.
Case Now Goes to United States
District Court,

Fremont j. =. Little. referee III bank-
ruptcy for kennebec county, Saturday
rendered his decision in the Gel, brated
Roscoe E. Penney bankruptcy case,
sustaining his former opinion that the
bankrupt be ordered to pay over TO the
trustee, Frank G. harrington, the sum
Of 5000 which he claims Was stolen
from him in Il sales stable on Friend
street in Boston last spring. The case
will now go to Judge Hale of the
United States district court for final
settlement.
The Penney failure, which was the
largest in kcnnebec county since the
passage of The national bankruptcy
law in 1898, created Il great sensation.
Penney WAS Il livery stable keeper
and is at present a member Of the
Board of Assessors OF lie city Of Au-
SuSta.
In his decision Referee Little says:
The appearance of the bankrupt at
the first meeting OF the creditors, at
the hearings upon the petition asking
tor au order that he pay over to the
trustee this amount OF $3.50, and at
the hearings under the order of court
recomnIittinS to me for further report
have been such as To convince me that
his testimony is unworthy OF belief. He
has continually assumed the attitude OF
forsetfuiness, even OF things that
happened within a month of his pllr-
ported loss of money and ii times
answered with defiance or insnlence.
During a thorough examination as
to his sales of stock. wherein he named
many such, he made no mention OF the
Il; ,,,at J,.,-
Frank G. Penney, which took place or
WAS concluded OH March o 1924, which
| was during the month prior to his
| trip II Boston ana then only testified
| as to that transaction after this had
| been accidentally found out by coun-
sci for petitioning creditors. and he
had been questioned in regard to it.
| THE appearance of his Wife, Ella T.
| Penney, has impressed me in a similar
manner, ana to such an extent, that Is
| to the material parts of her testimony
regarding the purported loss OF this
money, | believe it unworthy Of belief.
"iIaving this decidedly unf;tvorable
| appearance Of these two important
witnesses by which largely To make
| my former order to the bankrupt,
have been materially influenced by it,
| and this influence, together with my
belief that this boarding OF money by
| the bankrupt at his house was FOR nc
| other purpose than to keep it from his
| creditors, in view of oil the testimony
| and circumstances in this case, have
| formed my opinion by which l ordered
| the bankrupt to pay over to the trustee
! the amount Of money he reported lost
AT these late hearings held January
10th, 18th and Goth, 1908, l am even
more convinced than ever that my
former order was correct Witnesses
| have appeared as pleased both sides
and have been examined at length, but
little Of consequence has appeared tC
bring light upon the purported loss OF
money by the bankrupt. | have OBJ
served the same appearance as before
| in the bankrupt and his wife. Ella F.
| Penney, and those appearance have
deepened my distrust as to the truth
of their testimony.
Thus after making this further re-
port to this honorable court / do not
| hesitate to say that in view of all the
| testimony given, the personal appear
-anceS IF the witnesses and the peculiar
| circumstances surrounding the case.
am convinced beyond a reasonable
doubt that the bankrupt has never lost
that amount of $1,000, but that he still
has it under his control, and that my
former order to him to pay it over to
the trustee should be confirmed by this
honorable court.
1.-THE case was submitted without
argument by agreement Of counsel.