Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-08-29
Admission of Present lnabil-
ity to Meet Claims.
BANKS WANT RECEIVER
THIS REQUEST SECONDED BY THE
DEFENDANT
Letter From Mr.. Waggaman, Dated the
9th Instant, Before the
Court Today.


futed several days ago to have Mr.. Thomas
l.. WagEaman declared bankrupt. The
petitioners-the Second National Bank. The
National Bank OF Washington and the Ma
t.rnal Metropolitan Bank-today asked that
a receiver be appointed by the court 10
take possession OF the assets of the bank
TCpt and collect and hold the same until
further order.
Accompanying the petition is a letter.
dated August q. 1904, signed by Mr.. Wag-
CANAAN and addressed to Attorneys William
+. Mattingly. John b. I.arner and Arthur
Peter The letter follows:
Il feel 1t my duty TO communicate with
YOU. as representing the petitioning cred
itors in the pending bankruptcy proceed
ings. My answer. which Is required to he
fled on September g. must necessarily ad-
nit the Indebtedness of the petitOning
creditors. and In view of the pressing de-
uands Of other creditors. it must show In-
ability on my part to make present pay
raent although I believe that IL my assets
are administered ny competent trustees. so
to yield the real value. all claims against
me will be settled in full.
On yesterday proceeding was filed.
being equity No. DISCO, in which several
PERSONS uniting set forth various claims
against me, and alleging that the debts
due them are secured by certain securities
embraced in list designated list No. l, ask
the court TO appoint receiver for the
notes and securities embraced in list No. !.
Many other creditors are likewise
secured on the notes embraced in this list.
and 1t seems to me manifestly unfair to
others concerned that these notes should he
segregated from my estate and managed
Independently OF the bankruptcy proceed
ing. Unnecessary costs may thus be Great
ed. and 1t appears to me that one admins
ration of the entire estate is much TO be
preferred.
Wants Debtors Interest Guarded.
1T is my earnest desire that those to
whom 1 am indebted shall feel that their
future interests are guarded by proper
administration of my estate to the end that
complioa tons and delay may be avoided,
and the safety of the assets assured. L
therefore request that you take immediate
steps to have a receiver appointed in the
bankruptcy case to hd3i the entire estate
together until the appointment of a trus-
tee, which under the law, cannot be had
for some weeks. / am satisfied that this
is the proper course to be pursued under
the circums tances, and for the benefit of
all concerned.
The petitioning creditors inform the
court that 1t Is absolutely necessary for
the preservation of the estate of Mr.. Wag-
gaman and to the best interest of the same
that a receiver should be appointed to take
charge of his business and property. This.
it is added Is recognized by MIR. Wagga-
tinuing, the petitioning creditors say.
The petitioners are credibly informed
and believe that the debts stated to be Sc
cured by the securities embraced In list No.
l are very large. being upward of S500,OOO.
and that the face value of the securities
in the list amounts to more than 81 .OO0,-
go.
''That other suits for receiverships are
probable, and the estate of the bankrupt
Will not only be embarrassed in admins
tration by trustee in bankruptcy, but in
yolved in useless and unnecessary costs and
expenses to a large amount
THAT there are other assets of the bank
rupt to a large amount on numerous items
of which creditors are claiming special
liens. and it Is largely to the interest of
the estate and the creditors that the entire
estate should be preserved for administra-
ton in the bankruptcy cause"
For Removal of Trustee
Ellen Mcmahon this afternoon instituted
proceedings in equity against Thomas E.
Waggaman. asking that MIR. Waggaman be
removed as trustee for the complainant
as TO property now in his possession, upon
which the complainant claims to have a
lien by reason OF certain notes. 1t Is also
sought to have Mr. Waggaman make dis
covery of the notes in the list OF notes
No L. and which of the same are held as
collateral security for notes owned by the
claimant.
1t is explained that Mrs. Mcmahon
placed in the hands of Mr.. Waggaman. for
investment. sums of money. as follows
March 6. 1901. 1890; October Z, 1901. $500:
June q 1902. s50O: May 81, 1903. $1,000:
March II. 1904 S1.1O0. and July IS, 1904,
500. Mr.. Waggaman delivering notes
therefor.
Continuing. Mrs. Mcmahon says that the
9th instant her representative called upon
the defendant for the payment Of interest
Waggaman declined to pay the same.
stating as his reason that all my affairs
are in the hands of the court. and l will
do nothing in regard to it,"
Mrs. Mcmahon, who is represented by At
torneys J. X. Polk and Wilson & Barks-
dale. charges that Mr.. Waggaman Is insoI
vent, and therefore Is not a proper person
to act trustee with reference to the
notes In question. She says further:
The makers OF the notes owned by the
cOmplainant-M. F. Riley, c. NJ. Coughlin,
A T.. Mullan and W. NJ. Sharkey-were at
the time of the making thereof, clerks of
the defendant and are without means to
meet the same, and that, in fact, the notes
Were executed at the instance of Wagga-
man by the said persons merely accom-
mediation makers for Waggaman, who re-
ceived all OF the money for investment pur-
poses. but who now refuses to disclose what
Investments he has made on behalf of COM
p!ainant."
Rule to Show Cause.
Upon the petition of Attorney ]. II. Raj
ston. solicitor for Susan W. Edwards JUS
tice Stafford this afternoon signed an or
der directing Thomas f. Waggaman to
show cause the LIST of September why he
should not be removed as trustee In the
case of Susan w. Edwards against Chap
man Maupin. This is an equity proceed
Ing for substitution of trustee. and an ac-
counting of rents and profits, instituted
November ., 1851
Intervening Suits.
Justice Stafford this afternoon signed an
order allowing Ida Burch Sarah +. Gardi-
ner and George I. Gardiner to intervene in
the proceedings in equity instituted last
Friday by NJ. Agnes Gardiner and four
others against Thomas Z. Waggaman.
The intervenOrs say they placed money In
the hands of Mr.. Waggaman to be invested
for them They ask for a discovery and
the appointment of receiver or receivers.
Attorneys w. @. Gardiner and Beach & Ma
Their represent the intervenors.
R1aze In thA Cornfrv