Pierce Butler

“ The Act, while making discharge of bankrupts the general rule, conditions the grant upon adherence by every applicant to the standards of honesty and fair dealing in business transactions that are required or reflected in section 32 (b) (1) , (2) , (3) , (4) , (6) , (7) , 11 USCA. The fraud perpetrated by respondent is of the kind condemned. Giving effect to the rule that legislative intent controls, it is plain that 'property' includes petitioner's obligation according to the terms of the bond to pay respondent's debts. ”

“ Having regard to the results that at the beginning the parties were reasonably bound to anticipate, it is clear that respondent obtained, and petitioner gave, the bond and obligation on credit. See Swarts v. Siegel (C.C.A.) 117 F. 13, 17; Kobusch v. Hand (C.C.A.) 156 F. 660, 662, 18 L.R.A. (N.S.) 660. While clause (3) seems aimed particularly at false pretenses made by borrowers and purchasers to obtain money or goods on credit (Firestone v. Harvey (C.C.A.) 174 F. 574, 577) , it is not limited to such transactions. Respondent's application for discharge should have been denied. ”

“ Witt (Tex. Civ. App.) 142 S.W. 926; Royal Indemnity Co. v. Cooper, supra. In Gleason v. Thaw, 236 U.S. 558, 35 S.Ct. 287, 59 L.Ed. 717, this court held that the professional services on an attorney were not within section 17a (2) , 11 USCA § 35 (2) , which excepts from the general discharge liabilities for property obtained by false pretenses. ”