The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918. Page: 995
The following text was automatically extracted from the image on this page using optical character recognition software:
IN RE KERNER
statement" were added in 1903, and they were construed by the Cir-
cuit Court of Appeals in the Third Circuit, in Gilpin v. Merchants'
National Bank, 165 Fed. 607, 91 C. C. A. 445, 20 L. R. A. (N. S.) 1023
(1908), in an opinion written by Judge Gray, in which he declared
that the phrase "materially false statement" must, in order to consti-
tute a bar, "be intentionally or knowingly untrue." The court ordered
the discharge in that case, and reversed the court below in finding that
the word "false" in section 14b, clause 3, of the act, meant no more
than "not true " So in Re Collins (D. C.) 157 Fed. 120 (1907), the
court held that, to debar the discharge, the materially false statement
must have been either knowingly false, or made so recklessly as to
warrant a finding that the party acted fraudulently in making it.
But the language of the act is that the statement must have been
"materially" false. It must not only be intentionally untrue, if it is
to deprive the bankrupt of his discharge, but it must be untrue as
respects a material matter. And by that we understand is meant mat-
ter which, if disclosed, would have caused the party who was to act
upon the statement to withhold the credit which he extended. There
is nothing in the record which shows that, if the omission which is
complained of had been set forth in the "statement" submitted to the
objecting creditor, the credit would not have been given. The only
testimony we have from the objecting creditor comes from a witness
who had charge of its credit department. He passed on the credit of
the alleged bankrupt, and testified that credit was extended upon the
truth of the financial statement which had been furnished. He was
not asked, and did not state, that the omission was regarded as ma-
terial, and would have led him to withhold credit, had he known that
the assets exceeded by $6,000, and the liabilities exceeded by the same
amount, the disclosures made in the financial statement upon which
he acted. This court cannot say as a matter of law that such an omis-
sion is material.
 We notice in the briefs of counsel a failure to conform to rule
37 of this court (235 Fed. xi, 148 C. C. A. xi), which reads as follows:
"In the preparation of briefs any citations made from Federal Cases must
be accompanied by the citation of the original report of the case, and, where
a citation is made from the American Bankruptcy Reports, the citation in
the Federal Reporter or United States Supreme Court Reports must also be
given. If the case is not reported elsewhere than in Federal Cases or Ameri-
tan Bankruptcy Reports, the fact must be so stated."
It is a serious inconvenience to the judges to have cases cited simply
by the volume and page of the Bankruptcy Reports. If counsel wish
cases which they refer to examined, their citations should conform to
the rule which the court has prescribed.
The order of the District Court, denying the composition, is re-
HOUGH, Circuit Judge, dissents, on the ground that the financial
statement in question was "materially false"; i. e., substantially un-
true, and made so with intent to deceive.
Here’s what’s next.
This document can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Legislative Document.
The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918., legislative document, 1918; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38821/m1/1010/: accessed December 16, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.