The Topeka state journal., 1914-01-26
BADDERS CASE
Postponed to Tuesday Morning
Awaiting Hite's Effort. {.
Attorney Seeks Writ From Fed
eral Court for Badder's Relief.

Before the United States circuit
court Of appeals in st. Louis tooay
D. r. Hite is trying to block the en-
forcement of Judge Pollock's- con-
tempt certificate In the GeoI ge s Fad
ders bankruptcy case. Hite hastened
to St. Louis last night TO ask Tor an
order restraining Special Master S!o-
necker from enforcing the Pollock
writ and the examination OF witnesses
in the bankruptcy case was post
poned until Hite returned to kaEsas.
II the restraining order is denied. the
examination will be resumed Tuesday
morning.
lust now the examination IL sue-
pended in midair. Not rnta the cir
cult court of appeals rules on Hite'e
ingenious argument will the i1nanc'ai
affairs Of the Topeka merchant De de-
termined by the special master IN
bankruptcy. Badders. on aovfce OF
his counsel, paved the way for an INT
mediate flight to the federal courts
whe1, he refused to answer questions
when called as a witness in the tnvoi-
untary bankruptcy proceedings Ine
merchant not only declined 70 ols-
cuss his financial affairs. but refused
to state the proceeds from recent
sales, to reveal information regarding
the recent payment of Il rs per cent.
dividend on the capital stock OF the
company or to tell what had been
done with the money from sales.
Judge Pollock was appealed. to Tor a
certificate in contempt and a hearing
was set for next Friday when Badders
was to be asked to obey the contempt
writ or subject himself to the order
of the federal judge. Hits's motion
for {. restraining order will dt.pose OF
the contempt order before the case Is
called for trial.
Judges Sanborn, Hook and Smith will
hear Hite's application for a restrain
! ing order to block the enforcement OF
Judge Pollock's ruling. If the restrain
ing order is granted, Badders will for
the present at least, be relieved from
answering questions. Should the writ
be denied. he must tell OF financ1ai
transactions of the last few weeks in
which his creditors-said to hold claims
aggregating $40.000-have shown a sud-
den interest.
Judge Slonecker stated today that In
event the restraining order was de-
MED, he would resume the bankruptcy
hearing at 10 o'clock Tuesday morning.
Mrs. I, C. Burdick. cashier at the Bad
ders store, will probably be the prin-
cipal witness for creditors at Tuesday, s
hearing. On the witness stand Satur-
day, I. c. Burdick told Of the recent
payment Of a 25 per cent dividend by
the Badders company and Of the sub
seQuent reduction of the stock from
SAC, 600 to $4,000 or $4,000. Mrs. Burdick
,, is to be asked regarding a number OF
!, business transactions Of the company.
Of which George S. Badders is president
and principal stockholder.
| Creditors of the company, through
their attorneys. announced today that
| they would seek an order from the
court for the return of $11,50o which
Badders recently paid to his father-fn-
law, w. A. Byers. to cover loans. Tes-
tifying before the special master in
bankruptcy, Byers told Of the payment
! to him by Badders of $11, 500 to cover
J loans. The payments were made in
cash, the witness said, and the money
is still in his possession. Now the
creditors claim that Byers was made
a preferred creditor and will seek to
secure the return of the money pend
inE a final adjudication in bankruptcy.