IN RE VERNIA.
Ieannot Bee why the same principle does not apply here. Before this debt was proved, and ,at all times after expiration of the day appointed for the creditors to' cause, until this proof ,of debt was filed the bankrupt was entitled on the record as it stood to his dischargf3, there being no debts proved, and no opposition made. If the case 'bad been brdh'ght to the attention of the court within those dates he have been dischargecl before this proof of debt, was filed. He cannot be now defeated of his discharge by filing a claim too large to bring his case within the amount' of assetsxequired to entitle him to a discharge. A creditor, if he wishes to influence the question of the must prove his debt on or before the day appointed to show enuse, so that it may be reckoned in determining whether, the assets be equal to 30 per centum of the claims proved and ,counted against it, if he withholds his assent, in writing; or else,he must appear on that day and enter his opposition for cause, and file his specifications within the 10 days allowed for that purpose. Failing to take either of these steps, the weight of his claim is lost, and the right of opposition gone. He must, then, be regarded as corisenting to a. discharge, although he subsequently prove his debt and receive less' than 30 per centum of his claim. Let a. discharge be granted.
(District Court, D.'Kentucky. --'-,1880.)
BA1iKRuPTQY-DI!'CHARGE-BoOK8 OF ACCOUNT-:-CASE IN JUDGMENT.
Although a merchant need ,not keep his books, atter the most approved methods to entitle him toa discharge as Iibankl'upt, he must have kept accounts and books so that a competent accountant may, from'tb,13,hooks themselves,ascertain his true financial condition. Held, therefore, that where a bankrupt kept no booklJ,except a smaH pocket memorandum-book, in which he entered each day his cash received and cash paid out ja blotter, in which he entered his daily credit' sales; and a book in which kept those to.
whom he sold on a credit, all imperfectly kept, he was not entitled to a discharge, even though from these books and his invoices kept on file it may have been possible, with such memoranda, to make UD proper accounts.
2. f:iAME SUBJECT-FRAUDULENT PREFERENCES-CARE OF ASSETS.
A merchant, being insolvent, permitted and authorized certain away his goods in payment of their debts. Held, creditOIt to that he could not be discharged. Not only were the preferences fraudulent, but it was his duty to protect his assets against such losscs.
In Bankruptcy. The bankrupt, being a small retail grocery and liquor merchant, kept no books except a small pocket memorandumbook, in which each day he entered his cash received and cash paid out, which was lost and never produced; a blotter, in which daily sales on credit were entered; and a kind of ledger, in which accounts for goods sold on credit were kept against the purchasers. These were imperfectly and negligently kept, and his discharge was opposed for not keeping proper books of account. He kept his il1voices on file, and it was contended in his behalf that, from that and the books he kept, proper accounts could be made up and his financial condition ascertained. One of the bankrupt's creditors having obtained judgment against him, issued execution and levied on his goods, the sheriff leaving them with the bankrupt. His creditors came, and without objection helped themselves to the goods, taking them away on drays and wagons. These facts were specified in opposition to his discharge. James Campbell, Jr., for the creditors. J. C. Gilbert, for the bankrupt. HAMMOND, D. J., (sitting by designation.) The discharge in this case must be refused. The cash-book mentioned in the proof has not been produced, but, taking all the bankrupt says as to his mode of keeping it to be true, and inspecting the two books he does produce, it sufficiently appears that he did not keep such books of account as the business in which he was engaged required. He kept no merchandise account, no expense account, no account of the purchases made by ,him, and certainly no proper accounts of anything except of
sales tude on a credit, which appear to be very imperfect. It is true that the law does not require a merchant to keep his books after the most approved methods of book-keeping, but it does require that his accounts shall be so kept that a competent accountant can, from the books themselves, ascertain his true financial condition. If this can be done, the form in which they are kept is of no consequence. Re Archenbrown, 12 N. B. R. 17, and cases cited; Be Antisdel, 18 N. B. R. 290. There may have been in his store, in the shape of invoices and other papers, such memoranda of the facts that proper accounts could have been made up by extraordinary efforts to disentangle them; but this will not do. He must by his books, and the entries in them, under proper accOunts, however informal, be enabled to show the condition of his business. The books relied on here do not come up to this requirement. The other specifications are very informal, and,onde. murrer or exception, would not be beld' sufficient, because thej'donot, by requisite averments, show that ·the creditors had knowledge of the insolvency of the bankrupt, or rea,sonable cause to believe it, and knew a fraud on the law was intended. But they were not objected to by the bankrupt, and, having taken issue on them, it is now too late to make that objection. The proof abundantly shows that he was insolvent, and . thatthe creditors knew it, and intended to take an unlawful preference. It shows, on the part of the bankrupt, a most reckless disregard of the rights of his creditors, and his obligations to the bankrupt law, if he desired its benefits. The fact that his goods had been levied on by execution did not relieve him from these obligations. , The sheriff acquired title to sufficient goods to satisfy, the execution, but there were largely more goods t,han would satisfy it, and it was the duty of the bankrupt to protect them, instead of inviting or permitting his creditors to help, themselves to such as they wanted. Let a,n order be entered denying the discharge.
MYERSI'. CALLAGHAN and others.
(Circuit Court, N. D. flUnoi8.· FebI'Ullry 6, 188,1.)
1. CoPYRIGHT-STATE REPORTER. In the absence of any express legislation by the state indicating .a contrary principle, a state reporter is entitled to a copyright in his volumes of reports for what is the work of his o'irn mind and hand, notwithstanding it may' be true that he can have no copyright in the opinions of the court.
The various provisions of law in relation to copyright should have a liberal construction, in order to give effect io what may be considered the inherent right of the author to his own work.
A,: bankrupt has a right to pursue all proper legal measures for the the protection of. his interests until an of his estate has been appointed.-[En.
BANKRUP1'Oy-RIGHTS 011' BANK'WPT.
J. Le Moyne, for complainant. J. L. High and Thomas Moran, for defendants.
C; J. This is a bill filed by the plaintiff against the defendants for an infringement of the righ ts of the plaintiff under the copyright laws of the United States. The bill alleges substantially the following facts: From 1865 to 1868 the plaintiff and Horace P. Chandler constituted a business firm for publishing law books, and as suohfirm they became the proprietors of volumes 32, 33, 34, 35, 36, 37, and 38 of the lllinois Reports. Norman L. Freeman was the reporter, under the law and by the appointment of the court, of the volumes of reports; and the firm purchased all the proprietary rights of Freeman, and paid him a valuable consideration therefor, he' agreeing that the, firm should have the copyright of all said books. The firm published a considerable number of copies, of each of said volumes. In 1868 Chandler sold out all his interest to the plaintiff. The plaintiff was also the proprietor of, and entitled to the copyright in, volumes 39, 40, 41, 42, 43, 44, 45, and 46 of the Illinois Reports, of which Freeman was also the reporter, and from him the plaintiff purchased all his interest in those volumes. The plaintiff has