The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-03-18

Uontinusd from rass One,
Kansas City firm Il charged with hav-
ing been ''unlawful1y, knowingly.
fraudulently. designedly and felon-
iouely In violation OF section 416 OF the
penal code. and that Baddera de-
vtsed scheme and artif1ce to defrAud
many and various persons by divers
and numerous false and fraudulent
Charges Set Forth.
The complaint then sets up the al
It IL charged that q letter written
by Badders to C1uett, Peabody & Com
pany OF Kansas CITY. Mo-, was = di-
rect violation Of the federal postal
the Topeka corporation at the time
the letter was mailed. Tho letter was
dated December 8, 1913. It read:
(sentlemen:-Your favor OF the 6th
Is at hand. We wrote you several days
ago asking your indulgence until the
20th inst. and advised you later Of our
sale which together with an increase of
900 in our capital stock, which will
be available after December 10Th will
place US in position to not only
take care OF our discounts promptly,
but will allow US to anticipate az we'll"
The letter was signed The Badders
Company. by Geo. s. Badders." with
stenographer's notation. 'GSB-B."
Simple. ordinary, terse business let
ter, apparently. But Uncle Sam looks
at the matter differently. Connected
With the alleged true condition Of the
ladders company affairs at the time
the letter was written. 1t is claimed that
the letter was q connecting link In q
chain OF schemes to defraud innocent
creditors and to escape the payment
of the accounts.
At the time the letter was written.
Bidders was president Of the clothing
company. He was not only president.
but managing officer, controlled the at
directors and managed the affairs Of
the institution according to his own
notion. Such are the governments
claims.
Misrepresentation CHARGED.
It is charged that Badders represent
large concern. amply able to meet all
outstanding obligations and had goods
and assets valued at $4,000. Badders
also represented that the capital stock
Of the company had been Increased
from $4,000 to SEQ. 900. that the $25;000
stock issued had been fully snbocrib-
ed for and would be paid in full and
would be almost Immediately avail
able for the payment Of accounts.
Bidders To also charged with stat
ing that in connection with his
scheme to defraud, he represented
that the company's liabilities were not
| in excess of $4,000. In q period Of
less than three months, the Badders
company is said to have realized from
cash sales and collections more than
$4,000, Of which at least $4,000 is
said to have been diverted from regu-
lar channels and retained by Bad
ders. At this time the company's
liabilities are $4,000, to meet which Is
q stock of merchandise invoiced at
$4,000 which may bring SIS. 900 in a
forced sale.
The government now urges that at
no time did Badders have assets or
property In excess of the value Of
$4,000, that its debts were largely in
excess OF that amount. that Badders
wilfu1ly misrepresented the company's
assets and liabilities.
That wasn't all.
Allege He Swindled Creditors.
In its complaint the government al
leges that Badders purchased from
firms and corporations many thou
sands of dollars worth of goods for
which he did not pay and which the
] government charges the merchant did
| not intend to pay at the time Of the
purchase. 1t IL urged in the COM
plant that dividends DECLARED by the
company were upon fictitious earn
was at the time insolvent and in a fail
I ing condition, ''all of which he, the
said George s. Badders, unlawfully
and feloniously did with the intent
fthen and there to cheat and defraud
any and all persons. firms and corp0r-
ations whosoever might be induced. az
| aforesaid to become victims of his
said scheme and artifice to defraud.''
=