Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-10-25
MEETING FCREDITORS
Continuation Of Hearing in
the Wagganan Case.
REFEREES STATEMENT
PROBABLE ELECTION OF TRUS-
TEES SATURDAY NEXT.
Query by an Attorney Regarding the
Value of Securities in
List No. /.

List No. /.
The creditors of Thomas e. Waggaman
and their legal representatives met for the
third time this afternoon in the grand jury
room at the city hall. One of the first to
arrive was Mr.. Waggaman, who entered
the room at 1880 o'clock when there were
but four other persons in the room. He
occupied seat in the front row of chairs,
and was soon engaged in conversation with
one of the claimants.
When Referee Andrew Y. Bradley called
the meeting to order few minutes after 1
O'Clock. the audience consisted Of three
women in black and thirteen men, the ma
jority of the latter being attorneys.
Mr.. Bradley announced the filing Of
claims the first order of business and one
man. James Kane of 3O4 b street south
west stepped forward and handed In a
statement of Mr.. Waggamah's alleged in
debtedness to him. Mr.. Kanes claim is for
$112.G2. and is for rents collected by Wag-
gaman from tenants OF houses owned by
the claimant from July %. 1904, to August
25, 1904
The chairs in the room were soon occupied
Icy men. principally lawyers. and at 30
O'Clock some one suggested the hanging Of
ing room only
In the audience were many members of
the District bar including Messrs. Irving
Williamson. counsel for Waggaman: Will
lam F. Mattinglv. Charles c. Cole. William
=. Gordon. John B. Larner, Rosa F.
Downing, William Henry Dennis and E. H.
Thomas, assistant corporation counsel
Referee Bradley called attention to the
difference in classes of claims of the Wag
gaman creditors which have been presented
to him In his official capacity, and the right
of certain claimants to vote for the election
of trustees. ..-.,
Election of Trustees Saturday.
Mr.. Bradley announced that it was his ex-
pectation that the election of trustee or
trustees can be proceeded with at 10 O. clock
Saturday morning
AT the session beginning at 1 o'clock to-
| morrow afternoon. the referee stated, he
will read a list of the claims filed to date,
stating those which have been allowed and
those disallowed. with the several amounts
The creditors would when this list had
been read have an opportunity to object
to the allowances or dsallowances as The
case may be.
Il shall receive claims and proofs OF
claims UP to Friday evening"" said Mr..
Bradley, but 1 will not receive any Sat
urday, and shall not allow claimants to
'otc WIN nave ldlieu 10 HE them up TO
Friday evening" ..fr-.r
He added that a large number Of claims
have not yet been filed and that he would
assume the responsibility of declining to
accept and enter claims Saturday for the
voting for trustee
The first matter to be decided Saturday
will be whether there shall be one trustee
or three trustees and the referee he said
unless he is requested by the attorneys gen.
orally TO conduct the election differently.
n n nfv -.
several amounts. with the question, "Shall
there be one or three trustees?''
Mr. Bradley thought this plan would be
better than using ballots, which would re-
suit In complications and delay.
During the discussion which followed the
referees preliminary remarks it was stated
by an attorney that the 18th street prop
erty represented in the Waggaman assets
would not bring more than 81 a foot.
Mr.. Mattingly's Query.
Mr.. William F. Mattingly was the first
to address the referee He directed his re-
marks to the list of rates No. 1.
Il represent considerable amount on
that list" he said. THE first question that
suggests itself is whether those creditors
Secured by list No. u are entitled to vote
at all; and If so, in what AMOUNT
He stated that 1t was the spirit of the
bankrupt law that the unsecured creditors
nave the right to elect the trustee. Credi-
ors holding securities less than the amounts
of their claims can vote in the amount of
the excess.
I'VE are met at the Threshold, he con-
tinued, by the problem whethe these
creditors have any security at all. AS to
the creditors l represent, l will hold that
they have security"
Mr.. Matlingly held that the referee can
not fix any valuation at all as to these
claims. He said the referee and every one
else were perfectly lat sea- as to what the
securities of list No l. consist Of
But" he added, significantly, you are
not at sea as to what 1t ought to con-
sist Of"
He thought a large amount of valuable
securities can be restored to list No /.
I'VE don't know" said w. Gwynne Gar
diner, whether these Waggaman securi-
ties will pay cents on the dollar
An Equitable Lien.
Mr.. Mattingly said that independently
the holders of notes included in list No
1 have equitable lien on the property
on which these notes purport to be secured
lie said it did not require much to create
an equitable lien
He thought it was impracticable at this
time to allow creditors on list No. to vote
at all. He said the status of the claims
and their amounts could not be fixed with
any degree of accuracy In advance of the
election of the trustees. There should be
no guesswork in the matter. Should the
creditors on list No. 1 be allowed to vote
for trustees some doubt might be thrown
on the legality of the election.
When the trustees elected they
should be legally elected. and all other
| questions to list No. 1 will have to be
| litigated so the parties on either side will
| have an opportunity to submit proofs.
During the discussion which ensued an
attorney remarked:
This is troublesome question"
II have found it so, sir" replied Referee
Bradley. 4,-- -~T
Judge Cole, in his remarks concerning the
| status of creditors secured on list No L.
| said it appeared that the bulk of claims
| were made by persons, clerks in Wagga-
mans office. who had no financial RESPONSE
bility when the notes were made, and have
none now. 81
| Mr.. +. l.. Siddons argued as to whether
| the secured creditors may vote for trustee
and to what extent.
| Mr.. Cole discussed the technical language
| of the provisions of the bankruptcy law as
| to the right of secured creditors to partfci-
| pate. in the election of trustees.
He argued that exact figures were not
| necessary to fix the right of a secured cred
tor to vote. ---sA& - -
Attorney Coles Contention
Mr.. Cole contended that there was no in
surmountable difficulty in arriving at an
49, L.. A.