Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-08-23
A BIG DEED OF TRUST
Mr.. Thomas E. Waggaman
Files One for Record.
CATHOLIC UNIVERSITY
TO BE PROTECTED BY ITS TREAS
URER.
National Banks File Proceedings in
Bankruptcy and Seek to Have
Deed Set Aside

A persistent rumor has been current since
yesterday morning to the effect that tho
financial affairs of the Catholic University
| Of America are in somewhat of a tangle,
due to alleged bad investments on the part
of the treasurer of the institution, Mr..
Thomas E Waggaman From one source
came allegations of a far more serious
nature, involving the disposition Of nearly
s1,0O0.000. said to have been intrusted to
Mr.. Waggaman for investment. As a re-
suit of a thorough investigation of these
rumors, The Star is able to announce with
positiveness that the art collection and
library, supposed to have been donated to
the Catholic University by Mr. Waggaman.
has never changed ownership nor was a
change of ownership ever contemplated. 1t
was learned today that the library and art
collection were merely given as security for
certain investments made by Mr.. Wagga-
man for the university, which. 1t was stated
today. We're very unsatisfactory to the
trustees of the university.
These rumors coupled with the pub
lished statements of transfers of prop
erty and execution Of deeds of trust ag-
gregating more than $S15oO0 in favor OF
the Catholic University, reached the ears
of the officers of several local national
banks. who today capped the climax by
filing joint proceedings in bankruptcy
against Mr.. Waggaman. alleging insol-
vency and inability to pay debts. 1t is
understood to be the intent of the ma
tional banks interested to have the deed OF
trust filed by Mr.. Waggaman yesterday
for $S16 16s. 90 in favor of the university,
set aside, as well the deed conveying
his F street property and his residence
property on Q street to DIR. Daniel y.
Clarke for $4,000.
Renewal Of the Bond.
From information obtained today it APP
pears that DR.. Clarke. the father of Mr..
Wagganan's first wife. went on Mr.. Wag-
gaman's bond when the latter first assum-
ed the duties of treasurer of the Catholic
University. A few years ago, Ii is said,
another bond was executed. and DR.. Clarke
was again named as bondsman The deed
transferring $4,000 worth of property to
DIR. Clarke was dated in 1898. and Mr..
Waggamans new bond is understood to
have been furnished about that time The
coincidence in time is considered by some
interested parties significant.
An effort was made this morning to in
terview the rector of the Catholic Univer-
sity, Mgr. O'Connell, but he was out OF
town. No other officers of the university
could be found, except the secretary who
is also Mgr. O'Connel's private secretary.
de declared the story to be entirely new
to him. and said he was ignorant of any
or the transactions between the institution
and Mr. Waggaman. He declared IL TO be
matter of which only the trustees OF the
university or the attorneys for the institu-
ton could speak authoritative Conse-
quently reporter for The Star called upon
Mr. Irving Williamson. one of the attor-
neys, who has an office in the Columbian
building At first Mr.. Williamson was sur
prised at the trend of the rumors and de-
clared them unfounded. He admitted the
ming of the deed of trust. however, secur-
Ing SSI616S96 to the university
Amount in Mr.. Waggaman's Hands.
This was filed by Mr.. Waggaman and
Mr., John Ridout." said Mr.. Williamson. "as
trustees. merely additional security
Tor the investments made with the money
belonging to the university The amount
mentioned in the deed represents the exact
amount the university has intrusted to
Mr.. Waggaman. Mr.. Waggaman as he
received this money, in smaller amounts Of
course. made what he thought were good
investments. securing himself against loss
in the usual manner. In readjusting the
accounts Of the institution, certain of these
securities We're deemed unsat factory and
Mr.. Wagganan was asked to make "a deed
of trust, covering the entire amount That
is the deed which was placed on record
yesterday, and its only significance is that
the university is doubly scored
against loss, having recourse to the deed
of trust or to MIR. Waggamans bonds nan
in case of trouble.
Have you Mr.. Hamlton?' con-
tinued Mr.. Williamson. referring to Mr..
George E. Hamilton. the other of the at
torneys for the university.
i
porter called on Mr.. Hamilton. and he
sured the reporter that the statement made
by Mr. Williamson practically covered the
ground
Il don't know that I can say anything
more reflected Mr.. Hamilton. The deed
of trust is merely double security, and has
no further significance"
why Mr.. John r dout included with
Mr. Waggaman as one of the parties 10 the
deed of trust?" Mr.. Hamilton was asked.
Because the property was held jointly
tees" replied Mr.. Hamilton, but the
equitable title to the property is, l under
stand. with Mr. Waggaman."
What do you know of Mr.. Waggamans
present financial condition. asked the re-
porter.
THAT is difficult question" was the re-
ply Il have always thought Mr.. Waega-
man a man of ample means and CONSIDER
able property. OF course 1T may be with
him as it often is with landed proprie'ors.
that his property has deprecated or be-
come entangled i cannot answer your
question more fully
Dr. Clarke Declines to Talk.
When asked today regarding the pur-
port of the deed placed on record yesterday
by which Thomas e Waggaman conveyed
to him the property at 9l7 street and
also that at 1900 o street DR.. Daniel b.
Clarke explained that the transaction was
a purely personal matter.
'The public is entitled to what is on
record
is on record The Star is well Informed
as / am. Further than that the matter is.
as | remarked one that is personal TO me.
and regarding it the public has no rights
Record of the Trust.
Thomas E. waggaman and John Ridout,
trustees. late yesterday afternoon placed
on record a deed of trust, conveying to
George E. Hamilton and Irving William
son, trustees, certain property formerly
known as Woodley Park. now called Wag-
gaman and Ridout. trustees. addition to
the city of Washington. Ii is explained in
the deed that Thomas E Waggaman is
lust indebted unto the Catholic Univer-
sity of America In the full sum of SS76.-
16S SO, for which Mr.. Waggaman has made
or caused to- be made or indorsed to the
Catholic University of America the follow
ing notes:
One for $4,000 and two for 5000 each,
made by Cecilia NJ. Coughlin. payable to
Waggaman and indorsed by Waggaman to
the Catholic University
One for $4,000, made by e. T. Keller.