The Washington times., 1904-09-11
TRUST DEED NOT
BANKRUPTCY ACT
Catholic University Defends
Waggaman's Course.
CARDINAL GIBBONS REPLY
Treasurer Claimed He Was Worth a
Million Above All Claims
Against Him.
CARDINAL GIBBONS REPLY


Against Him.
There is one thing made plain by the
answer of the Catholic University oi
America. made yesterday by Cardinal
Gibbons in connection with the proceed 4
ings in bankruptcy against Thomas r
Waggaman. the treasurer Of the irsu-
tuition Nearly year ago the univer-
sity became dissatisfied with his man
agement Of it's funds.
The Institution at the time called upon
him TO deliver over the securities held by
him for 1t. and again. in May last. call
ed upon him for additional security for
its funds
These demands were made upon Was-
gaman by representatives OF the Catho-
lie University. Notwithstanding his state
ment that ne was perfectly solvent and
worth s.. 600 over and above all claims
against him.
Record Withheld.
The university authorities consented
TO Withholding from record the deed Of
trust given as additional security IN
July last. only so long as there should
b. no apprehension OF proceedings
against him tending TO show his insol-
vencv
Thea nswer of the Catholic University,
which was filed yesterday by Messrs
Hamilton & Colbert. of this city, ard
Charles j. Bonaparte OF Baltimore. viii
be considered in connection with Wag-
gamau's reply to a rule TO show cause
why a receiver should not be appointed
TO take charge Of his estate. when the
matter comes on FOR hearing Monday be
fore Justice Anderson.
Not a Preferred Creditor.
Cardinal Gibbons denies that the deed
OF trust given by Waggaman, as addi-
tional security TO protect SS76,16Ss IS WAS
an act OF bankruptcy or made for the
purpose or with tho intent Of making
the university a preferred creditor.
II is explained that the deed Of trust
referred TO was made by Waggaman 10
secure the Catholic University IN the
amount of $3.50. 16S. SO. representing certain
notes. which were described and which
he guaranteed the payment OF by his in
dorsement
Cardinal Gibbons further says that
Waggaman. al the time OF the execution
or the deed Of trust, was treasurer OF
the Catholic University. as he had been
for many years. From 1892 at various
times, money 20 the amount named Eas
placed in Waggaman's hands for in
vestment, il being part Of his duty to
receive all money paid 10 the university
AS capital, and 60 invest II TO the best
advantage.
Called to Account.
The cardinal goes on TO state that
-arrs.- lie
called upon Waggaman TO deliver over
the securities held by him for it, anc
TO assure # against loss. b. reason o.
the investments made.
Upon examination Of these securitie,
by a committee appointed by the unI
yersity. the cardinal says. they wer'
considered unsatisfactory and insult
hent Ia the early part OF May 1904
the committee requested Waggaman q
give other and additional security for II
funds.
When this request was made Wagga
man stated TO the committee that IN nj
opinion the securities given were ample
but he was DESTROYS Of doing all ia hi
power 20 comply with the wishes OF IN
university. and would consider their re
quest In short time he informed IN
university what could be done in tina
regard
Million Over Liabilities.
At an interview on this subject. in r.
Spouse 10 a question BY one Of The com
mittee. Michael Jenkins. Of BaltiInor,
Waggaman stated that his financia
condition was excellent. and that owe
and above all liabilities he was wort
considerably more. certainly not less
than 100000. under the most consery
alive estimate
II is further stated Wassaman wa
then asked as TO the use Ee made q
moneys placed in his hands for invest
ment by the university. He answere
that nearly the whole OF 81 had bee
used I'm the acquisition and developme-
OF suburban property. and IN very larg
part in recent improvements in WOodlC
Park. This statement the Cardinal say
~ tue.
Title Demanded.
The committee. it is averred, infOras
Mr.. Waggaman that the title 10 Il
property made valuable through the e.
penditure Of the Cniversitys none
should as a matter OF conscience al
equity. be vested I'm the university.
some one who would hold title for
The university contended that IL W
In reality the owner Of the property
To this Mr.. WaRgaulan objected on
on the ground that the conveyance
the university or z trust for his
debtedness TO the university would Ia
a tendency TO embarrass financially al
business man In Washington. lie prOI
ised however. 90 consult his attOrn
and expressed the hope that in a Il
days arrangements might be made
accord with the request OF the III
versity.
Trust Agreed Upon.
Afte- considerable negotiations. pr
cipally with Irving Williamson, att
ney FOR Mr.. Waggaman, It was agrt
that the trust referred 10 should
given. This trust provides FOR an ext
sion Of the time Of payment OF some
the notes representing the Indebtedness
Waggamszn to the university. and
further condition that the deed Of IN
would not be recorded until ninety Ga
from July -. 1904.
IL was distinctly impressed upon
committee by Mr. Waggaman that Wit
that time he would have the ability
only 10 make payment Of the note {!
due. but 20 pay OF I'm large part, IL
altogether his entire Indebtedness TO
university.