The Topeka state journal., 1914-02-19
he DHlES cOURI.

contended BY Badders'. attorney that
the order Of JAN. II orders tho de-
fendant to continue the business OF
the store, that q subsequent order
placed . receiver In charge OF tho
business, thus invalidattng the order
That the December slaughter sale OF
the Badders company netted $oS.OVV'
that President George 8. Badders per-
sonally looked after the bank deposits
and cash items and paid himself SAL
ary Of $50 a week In addition to x5.OOO
for managing the sale and the big divi-
dends he declared on the companys
capital stock, was the testimony OF
fered Wednesday afternoon at the m
voluntary bankruptcy hearing before
J. g. Slonecker, special master Neith-
er Badders nor ID. r. Hite. his ottor-
ney. were present at the hearing.
Just where the money from the regu-
lar and special sales went was not clear
ly shown. Mrs. Ira Burdtck. Dookkeeper
for the company, said she did not know.
Attorneys for creditors contended tnas
IN addition to the Is per cent dividend
which Badders, had declared on the
$35, 900 capitalization before the begin
ming Of his sale, that he paid himself
5000 extra salary for managing the
sale and that less than $4,000 OF the
$36. 900 from the sale was deposited In
local banks. But testimony to that eff
feet was not offered. Former witnesses,
however. had told Of the Is per cent.
dividend and Mrs. Burdick threw some
new light on the management OF the
clothing company's affairs.
sales totaled about 5000. while sales
for October amounted to $1,000 or 49,
900. Asked IL the records of two years
did not show cash business Of from
500. 900 to $1lO.0O0 witness said she did
not know
Clerk hire, Mrs Burdick listed at
$3.50 a week except during the special
sale when it was larger. Rent was $500
a month for the store building at Sew
enth and Kansas avenue. Badders
paid himself a salary Of $50 week as
president OF the company.
who were the stockholders or the
was asked Of Mrs. Burdick.
''Mr. Badders. Mr.. Boyd, my husband
and myself were all know Of" was the
reply. e>f
''How many shares did you hold?"
"One."
''where did you get it?' !
''Mr. Badders gave it to me-
"why?"
= He gave me authority to sign checks
and said that / should be a sharehold-
err"
Two Ten Per Cent Dividends.
Witness testified that in December
she assigned her share OF stock back
to Badders at the suggestion Of her
husband. She recalled having receiv-
ed two dividends of 10 per cent each
in the period from May to December,
1913.
Were any individual charge accounts
for Mr.. ladders made during Decem-
ber?" asked W. s.. McClintock, who
conducted the examination for the
creditors.
Yes. Two. I think" replied Mrs. Bur
dick
For what amounts?' =
zone was for about 81 800. the other
for between $4,000 and $1,000
who made out the ttems?"
''Mr Badders.",.
Are they shown on the books?'
-: mo. They ARE son the original. slips
in the safe and were never entered"
These items had to do with sales OF
stock to other stores, it Ii claimed.
Mrs. Burdick recalled one sale of hos
iery to the Mills company, but did not
remember the amount.
Asked II she entered vouchers, Mrs.
Burdick said that she did on Badders'
orders. One voucher entered in Decem-
Der, she recalled. for an amount in
excess of 5000. This item. according
to the contention of creditors was for
salary" paid to Badders for managing
the special sale Of the company Of
which he was president. Mrs. Burdick
did not know for what service the
voucher was drawn.
The witness said she was not an
ofhcer of the company. so far as she
knew. never attended stockholders
or directors meetings and did not
keep the stock books Of the corpora
ton.
Badders' Personal Account,
F. NJ. Bonebrake Of the Merchants
National bank. testified that Badders
had for several years kept a personal
account with his bank. No account
was carried with the Badders COM
pany. He produced records of Bad
ders' personal deposits for December,