In Re Herzog

SWAN, Circuit Judge.

The referee to whom the trustee’s specifications of objection were referred, denied the discharge for the reason that the bankrupts had failed to keep books of account from which their financial condition and business transactions might be ascertained. Upon petition for review the district court reversed the referee’s order and granted a discharge to the bankrupts, individually and as copartners. The problem is whether the court was right in deeming the “failure to have been justified under all the circumstances of the case.” 11 U.S.C.A. § 32, sub. c(2).

The facts regarding…