G.R. No. L‑2970
November 1 1906

FACTS
– José Crame, municipal treasurer of Bacolod and deputy provincial treasurer of Occidental Negros, was found short ₱1,151.04 ½ in his accounts; the safe held ₱3,194.54 ½ instead of the ₱4,345.59 that should have been on hand.
– The deficiency was fully refunded before the entry of final judgment.
– The trial court, relying on the Attorney‑General’s brief, classified the offense under Article 392 of the Penal Code (distracción of public funds) but applied the harsher penalty of Article 390 (sustracción) via paragraph 2 of Article 392, arguing that the refund was not made “in due time.”
– The United States appealed, contending that the full restitution precludes the application of Article 390 and that paragraph 3 of Article 392 should govern.

ISSUE
Whether, when the entire amount misappropriated is restored before judgment, the offender should be punished under paragraph 3 of Article 392 of the Penal Code (simple distra‑ción) rather than under paragraph 2 of Article 392/Article 390 (sustracción with delayed refund).

RULING
– The Supreme Court held that the precedents cited (Spain Supreme Court rulings of 19 May 1894 and 23 May 1896) apply only where a partial refund remains unpaid; they do not apply where the full amount has been returned.
– Consequently, the case falls within paragraph 3 of Article 392, which provides the lesser penalty for simple distra‑ción when the public funds are completely restored and no prejudice to public service is shown.
– The Court sentenced Crame to three (3) years’ suspension from public office and a fine of ₱285, with costs of both instances, and ordered remand to the lower court for execution after ten days from final judgment.

Concurrence: Torres, Mapa, Johnson, Carson, Willard, and Tracey, JJ.