Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-09-08
CLASH OF INTERESTS OVER PRO
POSED RECEIVERSHIP.
Additional Petition in Bankruptcy
Filed Today-Further Hearing
Monday Morning Next.

file a supplementary petition or answer
setting forth thu written admission of Mr..
waggaman. made yesterday, that he is UNI
able to pay his debts.
In granting the additional delay Justice
Anderson said the matter of jurisdiction in
this case of vital and growing i'm
portance. and that it was clear receiver
must be appointed either in equity or bank
ruptcy. He said further that the petition
ers in bankruptcy would have first consider
alton, that cause had been the first TO
be drawn to the attention of the court, but
that If a temporary receiver and trustee
in bankruptcy We're denied, a receiver in
equity undoubtedly would be appointed.
Everybody realizes, said the court, the
great Importance of placing the admins
tration of this vast estate in competent and
responsible hands. This adjudcatio must
be made carefully. and | can see no reason
why a postponement until next Monday
should not be granted.
MI. Bonaparte's Argument.
The first hour of the court was taken up
with the signing of orders. not relevant to
the waggaman matter, and'it after IL
O'Clock when Mr.. Charles ]. Bonaparte of
Baltimore. one of the counsel for the
catholic University of America and the
Georgetown University, addressed Justice
Anderson in behalf of his clients.
He said the filing of the supplementary
answer by Mr.. Waggaman admitting his
by him and counsel on his side when they
We're given until today to deny the ale
cations that Mr.. Waggaman had committed
an act of bankruptcy in making the i'm
menSe deed of trust over to the Catholic
University. He explained that he was not
prepared to file answer in behalf of the
Institution until this new phase of the case
could be considered, and for this reason he
requested .postponment till Monday
Then Mi Bonaparte created somewhat of
stir among the attorneys by announcing
that according to the bankruptcy act. the
court was not authorized to take final ac-
ton until at least six DAYS after the filing
of the defendants answer
rms was declared to be a point not raised
DeIore IN bankruptcy proceedings. and the
court Immediately admitted the position to
be ven taKrll--A4ssM Mr. Waegaman's answer
was flied Tuesday. September cit would
be September y next Monday, before
the matter could be adjudicated
The postponement was favored bv Mr. |
William f. Mattingly. counsel for some of
the petitioning banks, who are included
among the unsecured or general creditors
Opposition to the Delay.
Attorneys for the secured creditors or the
henors, headed by Mr.. jackson H. Raj
ston' opposed delay strenuoHsly
Mr.. Ralston characterized the program of
Mr., Bonaparte. Mr.. Hamilton and Mr..
hatunSiy as clever maneuvering. trifiing
ana unreasonable delay" and warned the
court against accepting the suggestions of
tHtSc attorneys, reached in private confer
ence outside the court room
When l came into this court two days
ago and referred to Mr.. Waggaman as a
hopeless bankrupt l was accused of harsh
ness. said Mr.. Ralston, "and yet not
twenty-four hours after | made that state
ment his attorney comes into court and
admits that the condition of bankruptcy
prevails
Your honor knows that an insolvent can
not be appointed trustee, and surely if
THIS Is so an lnsolvent cannot be maintained
as trustee. Can the court say that this
IL solvent Waggdm&n, who would not be
accepted in the first instance as a trustee
shall be retained indefinitely in that ca
pacity? Are our funds not in constant
dar ger? These delays may run along until
1t will be months before the estate is
placed in the hands of proper administra-
tors.
I'VE want protection. and we want it to-
day. and we most earnestly request the
court to name custodian for the securities
represented in list No. l.
I'VE feel that the securities should be
placed in safe hands at once as the estate
is large and the matter is ones of grave i'm
portance to my clients. On behalf of the
secured creditors I urge immediate action
instead of possible visionary receiver in
the dim future"
Expression of Opinion.
1t was the almost unanimous opinion of
local attorneys this morning that the petit
TONERS In bankruptcy will prevail and
that the estate will be administered as a
whole. all creditors, whether secured or
unsecured. receiving the same considera-
ton. This will be to the great advantage
of the Catholic University, which is an I'M
secured creditor to the extent of nearly
S600.Op0
MIR. Waggaman's liabilities to the institu-
ton aggregate nearly $500 900 il is under
stood. and he was bonded only in the sum
OF $4,000. In addition to this the univer-
sIty mas mortgage on Mr.. Waggaman's
art gallery and library, it is said which
VIII protect another 100000.
III receiver in equity is appointed the
university Will be preferred only to the
amount OF its security. sharing with all
other lenors in this respect. If a trustee
IN bankruptcy is named the university Will
nave chance with all other creditors for
the entire amount of Mr.. Waggaman's in
debtedneSs to it. 49,
AS the larger creditors are influential in
obtaining the appointment of a trustee to
lnelr liking, IL is predicted that the whole
estate Will be administered according to the
instructions which may issue from the at
torneys for the Catholic University As
this institution is in no great rush for the
cash. ii Is probable that the property In
Woodley and other improving sections Will
not be dumped upon the market bur will
be held until the demand puts up the value
TO where all creditors can realize 100 cents
on the dollar
New Petition in Bankruptcy.
Late this afternoon Attorneys Ralston &
Siddons and w. Gwynn Gardiner repre-
senting creditors of Thomas E. Wagga-
man. filed in the Bankruptcy Court a new
petition asking that Mr.. Waggaman be ad-
judged bankrupt
The petitioners alIege that they have
claims amounting In excess of securities
held by them to $500. and charge that
Thomas Il. Waggaman is insolvent and
that within four months next preceding the
date of this petition Thomas Z. waggaman
committed an act OF bankruptcy in admit
ting in writing his inability to pay his
debts.
The claimants in the petition filed today
are the same persons who filed the bill in
equity against Mr.. Waggaman, and who
have endeavored to have appointed a re-
ceiver for list No. 1" of securities held by
him.
Their action in filing new petition in
bankruptcy is in line with the contention
OF their counsel at the hearing before Jus
uce Anderson today. that the court was
without power to allow the filing of an
amended or supplemental petition in bank
ruptcy setting up acts of bankruptcy COM
united after the filing of the original petit
ton. 49,
Should this view of the law be accented
py the court, II rs sad. the original petit
tion filed by the local banks will have to be
set aside. and no adjudication in BANK