The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-03-03

Bought Heavily in November.
Badders and Byers, his father-in-
law. went east in November to buy
new goods. McClintock said Expenses
OF the store at that time were 81 900
to $1,000 a month in addition to rent
and light. But Badders and Byers are
said to have bought heavily. In De-
cember they started a creditors and
bankruptcy sale. The receipts of that
sale in December were $4,000.
The Basis for Claims of Fraud.
Then began the actions on which
creditors base their claims of fraud
About December IL. McClintock stated,
6aooers went to the packer for a local
transfer company, gave fictitiOns names
Tor shipments of goods from his store
to Kansas City and st. Joseph. These
sooos were received at storage houses
and the st. Joseph shipments were
later sent to Kansas City. 1t Is claim
ed that s. r. Graham. a former Sec
rotary of the Bidders company. an
peared and receipted for the goods on
January q. The goods later found
tneir way back to Topeka in IA crates
and invOiced about $1,000.
Excuses to Creditors.
Letters were being sent to creditors
oy Badders, McClintock contended, as
be protected about January 20 from
stock sales and asking that former dis
count privileges be extended. DELAYS
ana excuses were made for nonpay-
ments OF accounts until the filing of
the petition in bankruptcy
Yet 1t was commended Badders with
creW $4,000 from the Bank of Topeka
IN January. 1t was claimed in the
opening statement that the $4,000
SAFE IN december showed but $9,40O
deposited in the bank to the COM
pany's account, while Badders bought
cashiers checks and drafts and his
personal deposits in one month were
$4,000 and used for stock certificate
purchases. 1t Is claimed that Badders
maze cash payments to his father-in-
law of 1880 on accounts, while
creditors of the company waited for
their money.
Bought Life Insurance.
That wasn't all. McClintock stated
agents for the purchase of paid up life
| insurance policies. making his wife
and infant child beneficiaries One
policy for $4,000, for which Badders'
ferred to the defendants wife and the
premium paid IL years in advance
January 20, Badders is charged with
having bought Kansas City improve
| ment bonds, paying $7.139 cash for
| them. A few days later he returned
] the bonds to the bank, sold them at
| discount and asked for two sealed
! bags of gold containing $1,000 each.
The $4,000 additional was paid by
Badders in currency
| December "a, Badders is charged
with having received a shipment Of
| raincOats, which were never unpacked
/ but were taken directly from the
storage house of transfer company
Topeka and sold for less than the in
voice price of the goods
Loaded q Wagon With Goods.
| Early the morning of December 26,
! it is claimed that Badders and his en-
ployees loaded a transfer wagon with
! goods from the store which were sold
to Voiland for about $1.1O0, the goods
| invoicing 81, 500. Voiland paid cash
! for his purchases. Other bulk sales
are said to have been made to the
Checks which Badders received were
| presented at banks and cash de-
| manded.
| Preferred creditors were made of
the Topeka Edison company, local
houses in violation of the bankruptcy
| act. McClintock asserted. These acts
and the claims of fraud were cited by
| the attorney for creditors as the basis
for demand for a verdict Of insolv-
! ency.
F, James H. Harkless of Kansas City
| stated the case for the defense.
General Denial Entered.
THE statements by Mr.. McClintock
dIe AOl eVlOcHCc, DuI WHS1t COuuScl CA-
/ poets to be able to prove" said Hark-
| less in warning the jury. ION behalf
| of the defendant, our answer is q de-
NAL. It also puts in issue all the facts
ana deductions which counsel sought
| to convey in his statement"
A jury was selected to try the case
after the regular venire of twenty
| talesmen had been exhausted and a
dozen additional talesmen summoned.
I Both the petitioners and defendant ex-
I h THAR fIl11 allotment nf three
peremptory challenges each.
This Afternoons Session.
At 3 o'clock this afternoon Burdick
| had not completed his direct examina-
on clothing and the sale of $25 suits
| for half price. but said there was still
a small profit left for the company.
| The witness identified the Badders
| signature to letters to creditors in
which they were promised early pay
ments as soon as a new SIS 900 stock
! issue was disposed Of. These letters
! were written as late az December 5.
| But Burdick knew of nostock sales.
Badders, he said. had made note for
SIS GOO for the entire stock issue, but
| had not turned it over to the cor
poration and SO far as he knew the
note was not endorsed and no cash
had been paid into the company.
The records were loaded down with OBJ
! jections by attorneys for Badders. who
! filed protest to virtually veEH exhibit Of
I fered by creditors. James Harkless Of
Kansas City this afternoon took the lead
for the defense and VIII probably conduct
| the Burdick cross examination.
| Called Hite to the Stand.
| Without warning or previous notice
d. r. Hite was called to the witness
stand late Monday evening by attor-
neys for the Badders' company credi-
1 tors who desired to inquire as to the
present postofflce address OF George s.
Badders. Hite said he did not know.
xhe last time he saw Radders. the law