Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-09-08
Delay in Securing Decision
in Waggaman Case.
THE ARGUMENTS HEARD
CLASH OF INTERESTS OVER PRO
= POSED RECEIvERsHIP.
Additional Petition in Bankruptcy
Filed Today-Further Hearing
Monday Morning Next.

1lr. Thomas f. Waggaman to have him ad-
Judged bankrupt came up before Justice
Anderson of the District Supreme Court
this morning. and it was confidently eX-
pected that final action would be taken.
but after an argument lasting an hour,
further consideration of the case was put
off until next Monday morning at 10
o'clock This was done in order to allow
some of the petitionng creditors time to
file a supplementary petition OF answer
setting forth the 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 was 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. as that cause had been the hrst TO
be drawn to the attention of the court put
that if 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 i'll competent and
responsible hands. This adjudication must
be made carefully, and l can see no reason
why 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 was 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
an syx,,ar nv atyeya adj n1itt
bankruptcy was an act wholly unexpected
by him and counsel on his side when they
were given until today to deny the ale
cations that Mr.. Waggaman had committed
an act of bankruptcy in making the i'm
meuSe deed of trust over to the Catholic
University He explained that he 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 Mr.. Bonaparte created somewhat of
a stir among the attorneys by announcing
that according to the bankruptcy act the
court was not authorized to take final &C
ton until at least six days after the filing
of the defendants answer.
This was declared to be point not raised
before in bankruptcy proceedings and the
court immediately admitted the position to
be wen taKu1---A4ss- Mr.. Waggaman's answer
was flied Tuesday, September i would
be September Il or next Monday before
the matter could be adjudicated.
William F Mattingly, counsel for some OF
the petltioning banks, who are included
among the unsecured or general creditors
Opposition to the Delay.
Attorneys for the secured creditors or the
lienors. headed by Mr.. jackson H. Raj
ston, opposed delay strenuoasly
Mr. Ralston characterized the program of
Mr.. Bonaparte. Mr.. Hamilton and Mr..
hlatungiy as clever maneuvering, trifing
ir4Al son la fJa1o
court against accepting the suggestions of
these attorneys, Preached 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 athe condition of bankruptcy
prevails.
Your honor knows that an insolvent can
not be appointed as trustee. and surely if
this is so an inSolvent cannot be maintained
as a trustee. Can the court say that this
irsolvent Waggdm&n, who would not he
accepted in the first instance as a trustee
shall be retained indefinitely in that ca
pacity? Are our funds not in constant
danger? 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 il 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 one of grave i'm
portance to my clients. On behalf of the
secured creditors l urge immediate action
instead of a 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 UNI
secured creditor to the extent of nearly
$500 Oeo
Mr.. Waggaman's liabilities to the institu-
toh aggregate nearly s9O0,O00 it is under
stood and he was bonded only in the sum
OF $20O,OOo. In addition to this the univer-
sity has mortgage on Mr. Waggau,an's
ART gallery and library, il is said which
VIII protect another 100000.
III a receiver in equity is appointed the
university will be preferred only to the
amount OF It's security. sharing with all
other llenorS in this respect. If a trustee
IN bankruptcy is named the university will
nave a chance with all other creditors for
the entire amount of Mr. Waggaman's in
debtedness to it.
AS the larger creditors are influential in
obtaining the appointment of a trustee to
lhelr liking, 1t Is predicted that the whole
estate Will be administered according TO the
instructions which may issue from the at
torueys for the Catholic University AS
TINS 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 but will
he 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. fled in the Bankruptcy Court a new
petition asking that Mr.. Waggaman be ad-
judged bankrupt.
The petitioners allege that they have
claims amounting In excess of securities
held by them TO $500. and charge that
Thomas E. Waggamau is insolvent, and
that within four months next preceding the
date of this petition Thomas Z. Waggaman
committed 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 re-
ceiver for list No. T. of securities held by
him.
Their action in filing a new petition in