Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-09-13
PROGRESS MADE TODAY
Arguments Before Court iu
the Waggaman Case.
HIS FINANCIAL STATUS
PLEAS FOR CATHOLIC UNIvERs-
ITY AND OTHER CREDITORS.
Plea Against Charge That Deed of
Trust Was Made to Pre-
fer Creditor.
HIS FINANCIAL STATUS

ton, also of counsel for the institution, was
heard. and Mr.. William F. Mattfngly, rep
resenting some of the petitioning creditors.
addressed the court In rebuttal.
The arguments of the day developed the
fact that the Catholic University is not con-
cerned whether Mr. Waggaman is adjudg-
cd q bankrupt or not, provided the deed OF
trust for approximately 100000. given by
HIM security for the funds he held as
treasurer, is not affected.
This much was admitted by counsel who
went so far as to say that the validity of
the deed would be fought for on appeal If
necessary. They are willing Mr.. Wagga-
man be adjudged bankrupt on the ground
debts. but not on the ground that he COM
mitted an act OF bankruptcy in giving the
deed as a preference.
Regarded as Important.
What was characterized by many attor-
neys significant point was the APP
parent failure of the university counsel to
answer the statement made yesterday that
Woodley Park was purchased In 1887 by
Mr.. Waggaman. and that he received no
money treasurer of the institution until
1892. five years later. 8
Mr.. Bonaparte said Woodley was pur-
chased on the instaiment plan and that
some of the university's money did go to
the purchase. but by deferring this issue,
attorneys claim, he assumes the burden
or proof No proof was offered on this
point.
In opening court Justice Henderson said
Dy way of suggestion only that he would
be glad to entertain motion to consolidate
the cases of the petitioners. He said he
would not promise to grant such a motion.
but he would like to have counsel con-
slider it.
Developments later In the day showed a
dlsinclination on the part of the attorneys
for the petitioners to consolidate, and mo
Such step was taken
1t IS probable the court will be asked to-
morrow morning to defer final action I'M
III hearing is had on the petition flied yes
terday, the rule in which is returnable the
18th instant. If this Is done 1t WILL It Is
understood. be by mutual consent OF par
ties interested.
Court adjourned at o'clock today until
tomorrow morning at 10 o'clock.
Suits Filed Today. '.
In connection with the proceedings in the
Waggaman case a suit today was entered
in the Supreme Court of the District by
r. Irving Bowie; against Cecilia M Cough
lin, Samuel E. Allen, jr, Thomas E. Wag-
gaman and John w. Pilling. seeking to re-
move Waggaman and Pilling as trustees,
ana TO foreclose deed of trust given on lot
Il In square "A, situated on NJ street near
oath street.
The bill of complaint which was filed by
Attorneys Charles II. Merillat, VIM E. Am
brose and Joseph X. Roberts, as attorneys,
states that in 1897 Mr.. Bowie having money
to invest and having confidence in Thomas
E Waggaman as a real estate agent turned
over to him the sum of 1000 to be invested
in per cent real estate well secured
mortgage, Mr.. Waggaman to act as his
agent in the matter In return, it is set
forth, he received real estate trust note
for $1,000 made by Cecilia NJ. Coughlin,
September II, 1894 payable to the order of
Samuel E. Allen, jr., and stating that the
same was secured on lot Il, square "a.
A ha tn1a IN iS ha la
Cecilia NJ Coughlin was the record owner
of lots 10 to 70, in the square named. and
still is, and that September u, 1894, by
deed of trust duly recorded she transferred
all these lots to Thomas E. Waggaman and
John w. Pilling trustees to secure the
payment of $4,000 to Allen. the deed of
trust reciting that the trustees were to hold
the same until some sixteen notes aggregat-
ing in value $12,0O0 were paid, and that in
default of payment of principal or any in
stallment of interest at 8 per cent the
of the sixteen notes. namely. the com
plainant's thousand-dollar note and another
for $500, were secured on lot
Default Alleged.
The bill states that default has occurred
in payment of interest and that demand
for the principal and interest has been
made, but has not been complied with by
the parties. 1t is alleged that while COM
plainant took the note on the faith of the
record. and of his confidence in Waggaman.
he has learned recently that Cecilia NJ.
Coughlin and Samuel e. Allen, jr.. were
clerks in Waggaman's employ, lending their
names to enable Mr.. Waggaman to specu-
late in the lots with the monies of COM
plainant and others 1t further alleges on
Information and belief that John w. Pilling,
the other trustee, was interested with Mr..
Waggaman in these and other ventures in
which his name was used as trustee, and
is said to have been a member of the real
aCt RI "a n prryn yr,ay O.
Company. 1t is stated that Mr.. Waggaman
since has acknowledged his insolvency and
that for these and other reasons he and Mr..
Pilling no longer are proper persons to be
trustees. The bill therefore prayS that they
may be removed as trustees and that new
trustees be appointed and directed to sell
the lot named as advantageously prac-
ticable at public or private sale. 1t Is also
asked that in the event Of a deficiency. the
lot having an assessed value of about $500,
that all the parties defendant may be made
liable by decree for the amount of the de-
ficiency, and that II there be a surplus the
court shall direct how 1t shall be applied or
paid.
Later In the day Attorney Charles II.
Merillatt. counsel for Mr.. Bowie presented
the matter to the court and Justice Ander-
son issued a rule requiring the defendant
trustees to show cause why they should
not be removed and new trustees appointed.
Counsel Bonaparte Resumes.
Mr.. Bonaparte of counsel for the Catholic
University resumed his argument this morn
ing when court convened, at IL rs o'clock,
referring briefly to the point raised by him
yesterday. that no claim had been made by
Mr.. Mattingly that Mr.. Waggaman was in
Solvent at the time the deed was made He
showed clearly that the Catholic University
does not intend to relinaush the benefits
assured by the deed of trust without a
strenuous legal battle. He declared Mr.
Waggaman to have been acting as agent
Tor the institution, and that the title to
property purchased by the money Mr. Wag
gaman held as trustee, never having been
in Mr. Waggaman, could not have been
transferred by him to the university
good attendance of attorneys and others
evidenced an increased interest in the pro-.
eeedings. Mr.. Holmes Conrad, who, with
Mr. Bonaparte participated In the trial of
the postal fraud cases, was present and
Followed Mr.. Bonapartes argument closely
Mr. Waggaman's answer to the last pc
tition In bankruptcy, filed by M Agnes
Gardner, has been filed. Justice Anderson
named September % as the date for Mr..
Waggaman to show cause why he should
not be adjudged a bankrupt, under this
cause The answer sets up no new mat
ter. but express a preference that IL Mr.
Waggaman is adjudged bankrupt some
reputable trust company be appointed trus-
tee. 1t Is believed that this recommended
ton will be made by the petitioning credi-
tors In the present proceedings provided
fS