The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-03-04
Badders' Store Was Losing
Money at the Time.
He Also Sold Big Lots of Goods
to Retailers
At away BELOW THE Cost
Bought Heavily and Misrepre.
sented Assets.
Many and Strange Are the StOr-
les Witnesses Told Today.

s~AA~A oSA eA-o ~ 49, S--O '0~
les Witnesses Told Today.
Between two 25 per cent interest
paying periods, George S. Badders at
tempted to sell his Topeka clothing
store and admitted that the store was
losing money. He bought heavily In
new goods. He sold goods to other
retailers which were taken direct from
the freight warehouses to the new
owners. He sold to other merchants
new goods at from Is to 40 per cent
less than the wholesale cost He con-
signed to presumably fictitious persons
several thousand dollars worth of
goods from his store. He made de-
livery of goods sold to Fred Voiland at
o'clock in the morning. He mace
alleged preferred creditors OF local IN
stitutions. He allowed the rent ac-
count to lapse four months. He gave a
creditor a check for $3.50 which the
bank refused to honor and which Bad
ders refused to protect. To the same
creditor he represented assets OF $SV'-
900 and liabilities of $4,000
Those were some of the stories told
today from the lips of a score OF wit
nesses in the Badders involuntary
bankruptcy case in the United states
district court. The days testimony
furnished new thrills and sensations
in the developments Of the transac-
tions of the young merchant and MS
flyer in the clothing business. But the
stories were told over the stubborn
protest OF Badders counsel-Badders
has not as vet appeared in the court
room A total of 1872 formal ob1ec-
tions to testimony have been flled py
the defense. Less than dozen OF the
objections were sustained and in every
instance the defense thOughtfully
noted an exception into the records.
T. W. Felix told of a conversation
with Badders early in Octoper-tWo
months before the December dividend
dend in May. Badders wanted to sell
his store.
what did Badders say?" asked w.
S. McC1intock
"said he wanted to sell as he had
lost money-lost about $1,000. He
said he had found that he didn't know
as much about the clothing business
as he thought he did. 1 told him the
stock was too large and he offered to
reduce it. He told me the stock in
voiced about $4,000. which he would
sell for 100 per cent and wanted
$1,000 for the fixtures
Badders promised to guarantee the
witness a ten-year lease on the build
ing at 7O1-3 Kansas avenue II the
sale was made. On cross examina-
ton, Felix said he regarded the loca-
ton as one Of the best in town.
OWtS $SSOOO
w. D. Fitzpatrick, president Of the
Knights and Ladies Of Security, tes-
titled that the Badders rent account
of $500 a month had not been paid
for the months of October, Novem-
ber, December and January. On
cross examination he denied that the
lapSed payments were due entirely to
negotiations for a sub-lease and an
extension Of the present lease for ten
years. Notice to terminate the lease
was served subsequent to the petition
in bankruptcy.
Frank P. MacLennan of the State
journal; ]. G.. Fleisch, representing
the Davis Mercantile company; ]. E.
Griest Of the Capper publications, and
A. H. Purdy, representing the Edi-
son company, told Of payments to
their firms of money by the Badders
company in November. December
and January. These payments Of ac-
counts are alleged by petitioning cred
itors to have been in violation of the
bankruptcy act.
Sheriff L. L. Kiene testified that he
Is now holding a personal property
tax warrant against Badders for $496.
The Shawnee sheriff said he bought
a share Of stock in the Badders COM
pany several months ago, but that it
had been subsequently redeemed by
Badders and small premium paid
Then came stories of the wholesal-
the actual cost price.
Arthur Mills. secretary Of the Mills
company, stated that he bought a
stock of hosiery at about Is per cent
less than the invoice price. The sale
was made Dec. "a and the company
gave Badders a check for $31395.
Six days later Badders sold a stock
of children's clothing to David j.
August.
Sold Goods for $500 Worth $3.50.
what was the value of that cloth
1ng?" August was asked.
1T would invoice about $780,"
How much did you pay?"
II paid $500"
Fred Voiland also bought some
goods. In fact Voiland bought twice.
His first purchase was transfer
wagon loaded with merchandise de-
livered to his store at o'clock the
morning of December 26.
''What was the invoice price of that
purchase ?'' was asked.
think it was $1,44O.15."
How much did you pay?"
"Seven hundred and ninety-two dol
lars and cents
.sIn what manner did you pay?"
ssI wrote out a check. Mr. Badders
said he wanted the money. I had 1t
and counted out the amount in cur
rency and gave 1t to him.
Voiland Paid in Cash.
Three days after this transaction
voiland bought about $500 worth OF
raincoats and overcoats from Badders
He paid $3.50 for this purchase. Pay
n,ent was made in cash.
It is charged by petitioning creditors
that in the second sale to Voiland was
included q shipment Of raincoats
bought by Badders and taken direct
from the storage house to the Voiland
store In North Topeka. where they
were sold for so per cent OF the IN
voice price.
P.cired Goods to BE Taken Away.
george Thompson and James Rich