The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-01-29
George Badders Took Witness
Stand This Morning.
Told Frankly Of All His Finan-
cial Dealings.
HIS STORE WAS CROWDED
That Is Reason Directors Meet
Ing Was Held in Basement.
Stockholders Financial Rating
Was ss,257,OOO.

Kansas City, kan, Jan. 2s.-George
s. Badders took the witness stand in
his own defense at his trial for alleged
fraudulent use OF the mail in federal
court this morning. He told in a
frank. easy way of his financial deal
| ings which have been QUESTIONED by
the government. lis direct testimony
was finished at the morning session.
At this afternoons session District At
torney Robertson will cross-examine
| him.
Special attention in Badders's testi-
mony was paid to explaining the dis
posal of the $4,000 taken in by the
Bidders clothing firm in December,
1913. Badders told in detail of the
payments he had made with this mon
ey and accounted for all of it. The
biggest disbursement was $11,500 to
his father-in-law, w. A. Byers, in
payment of various loans advanced to
Badders. He also mentioned a pay
| ment of $4,000 to the Bank of Topeka
| on loan and of $4,000 on account
to the Steintloch Clothing company
of Rochester. N. Y; $4,000 Of the
$500 was used in providing bond in
bankruptcy proceedings.
Regarding the meetings of board of
directors in the basement of his store,
testified to last week by clerks who
said that they had been given one share
of stock. made directors and then voted
| increase in capital and salaries Bad
ders said that his course was the same
| as that followed in all business. He
said it was customary for corporations
to sell one share of stock to outsiders
and then declare them directors with
power to vote at the meetings. He said
the meetings were held in the basement
because the Office Of the store was
crowded AS proof that there was
nothing secret about the meetings he
testified that minutes. of the sessions
were prepared.
AS to increase in salary voted at the
meetings, Badders testified that he had
never paid himself the increased sal
airy but that he put it on the books to
show that the business was sufficient
to pay such a salary in case he should
want to take a partner into the COM
pany.
An affidavit by John r. Mulvane of
Topeka was read at the morning ses-
sion of court. Mr.. Mulvane swore that
he would have been willing, to lend
Radders 100000 on the $4,000 increase
stock of the store as collateral.
St0ckh9lders of Store.
The interesting feature of the
Thursday afternoon session was the
presence of two members of the SUI
preIY1e court of kansas, Justice Henry
testified to the general good character
of the defendant previous to the cloth
ing company incident. Frank p. Mac
4 Lehman of the State Journal and ]. E.
Griest, business manager of the Capt.
tai gave summary testimony to the
effect that in paying his advertising
| bills for December, 1913, in January
/ following, Badders requested that a
receipt be given to him personally as
he was paying the accounts out of a
personal fund.
4 Considerable interest was developed
in the trial this week by the introduce
ton into the testimony of a list of
about fifty business and professional
| men and politicians in Topeka having
held stock in the Badders Clothing
conn any, the testimony disclosing
the following:
Gov. Arthur Capper heads the list.
Robert Stone. speaker of the house of
representatives; John s. Dawshon, at
torney general; Judge J. S. West JUS
tlce OF the supreme court, and minor
state. county and city officials follow.
The others are: N b. Burge, E. l..
O'Neal. c. A. Moore, J. Will kelley, l..
w. Wilson, E. r. Simon, C. B. Burge,
| F. M. Newland, H. L. Cook, Scott Hop
kins, S. E. Cobb, o. j. Wood w. B.
Collinson, HI. B. Lautz, E. L. Copeland,
DR.. S. G. Stewart. J. B. Larimer, T. A.
Borman, J. B. Doncyson, L. L. Kiene,
w. w. Mills. H. w. Bomgardner,
Frank B. Parker L. F. Clearinghouse,
w. NJ. Forbes, E. B. Whitmore, Omer
4 D. Smith, z. G. Hopkins, George w.
BANTER, Egbert l.. Whitney, c. W.
| Hanchette, Arthur J. Carruth, jr.,
! Glenn NJ. Bryan, George w. McCIel-
land. DR.. F. o. Burket, DR.. J. A. Stein
meyer. George M. Crawford, ]. L. Vim
cent, w. E. Stevens, DIR. J. L. Work, C.
M. Lawrence, George H. Hoyes and
C. G. Zimmerman
Badders had induced each of these
men to buy one share of stock in his
company. He told them it was for the
purpose of getting their good will, and
to establish good name for his store
in Topeka. Then. the government
charges, he sent the list of their names
to eastern creditors, representing that
they were back of him in his business.
and set out that their total financial
rating aggregated s. PSI, 900. The gov
eminent ADVANCES that as one of the
methods Badders had of inducing
wholesale dealers in clothing to increase
his credit
Badders bought up all the single
shares of stock distributed in this way
Just before the crash came in his finan-
cial affairs. He paid small dividend
at the time, so that none of the Topeka
citizens lost on the Investment