Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-10-10
RULINGS BY REFEREE
Method of Procedure in Wag-
gaman Case.
THE INQUIRIES MADE
DEFINITION OF CREDITOR IN
BANKRUPTCY PROCEEDINGS.
Riggs Bank Denies It Holds Securities
Proceedings Today in the
Equity Court.
THE INQUIRIES MADE

Mr. Andrew Y. Bradley the referee in
bankruptcy in the waggaman case. has
been besieged by many inaurers I'm CON-
nection with the details of the litigation
number of attorneys have inquired whether
Mr.. Bradley proposes to have the schedules
printed, and they expressed themselves as
anxious that this be done. They were in
formed by Mr.. Bradley that he could find
| no authority for printing the extensive lists.
II Is stated that many inquiries have also
been made as to whether it Will be neces-
sary for attorneys-at-law to present let
ters of attorney" from their clients whose
claims are entered on the schedules The
letters of attorney are said to be some
thing on the order of powers of attorney.
Ihe reason given for these inquiries is
whether or not it will be necessary for the
attorneys to secure such authority in order
to enable them to vote for the election of
trustees, which will take place at the first
meeting of the Waggaman creditors
When asked about these matters by
Star reporter today Mr.. Bradley stated he
had been informed that IT had been the
practice for referees to allow ATTORNEYS TO
vote without such authority. The law of
lS3S, section 56 a, provides he said that
creditors shall pass upon matters submitted
to them at their meetings by majority vote
in number and amount of claims of ali cred
itors whose claims have been allowed and
are present, except as herein otherwise
This section, ,MrxesaIes-adSsa. provides
that the exceptroA" refers to secured cred
itors, who are not allowed to vote for trus-
tee, except in far as the amount of their
claims exceeds the value of securities held
by them
Word Creditor Defined
The definition of the word Creditor" as
n cd In pbo &c SaIo
Creditor shall include any one who owns
demand or claim provable in bankruptcy,
and may include his duly authorized agent,
attorney or proxy"
Mr.. Bradley stated further that all the
| authorities he had examined on this SUBJ
ject are to the effect that the latter part of
the last section does not apply to attorneys
representing their clients at the first meeting
of the creditors for the purpose of voting.
And shall therefore require attorneys.
he said Ito produce either general or
special letter of attorney as prescribed by
the forms provided by the Supreme Court
of the United States.
'"rhe text books cite cases. one of which
is of quite recent date, to the effect that
were IT not for the forms prescribed by the
Supreme Court in such cases. and for the
precedents contained ia. the reports, the
court would hold that fSn attorney -at-law
had the implied authority to vote for his
client at the first meeting of creditors,
but in view of the fact that these forms
have been prescribed ara the
have decided that these letters of attorney
are necessary, the judge who decided the
case adhered to the precedent established.
1t is on those authorities / propose to base
my action"
Proceedings in Equity Court.
The equity cause of r. Irving Bowie
against Cecilia NJ. Coughlin, Samuel Z. AL
len. jr., Thomas E. Waggaman and John
w. Pilling being reached today in Equity
for a rule to show cause why Wagyaman
and Pilling should not be removed trus-
tees of subot II, square "a. this city,
Justice Anderson ordered that Mr.. Wagga-
man be removed as trustee. William e.
Ambrose was appointed trustee in his
stead and 1t directed that Mr.. Pilling
continue as the other trustee. The trus-
tees, after giving bond in the of 1850.
are to sell the real estate in accordance
with the terms of the deed of trust.
The order removing Mr.. Waggaman as
trustee was signed with the consent of his
counsel.
sale of property in which Mr. Waggaman
was interested since the announcement of
his failure. In the bill of complaint which
filed by Charles II. Merilat, VIM. Z.
Ambrose and Joseph K. Roberts. as attor-
Eeys for Mr.. Bowie, it was alleged that the
complainant had invested 81 900 through
Mr.. Waggaman and that it was placed on
note given by Cecilia Coughiin to Samuel
Allen, the note being secured by a deed of
trust on lot Il. square "A, situated near
9th and n streets.
Thomas e. Waggaman and John w. Pill
ing were named trustees under the deed
OF trust. 1t was averred that Cecilia Cough
lin was the record owner of the properly,
but that the real owner was one or both
of the trustees. and that the complainants
money had been used by Mr.. Waggam1n
unknown to the complainant, for the pu--
pose of speculating in real estate whereas
the complainant had regarded him solely
hlt tncr no nor
the properties on which the money was
loaned.
Belief That Assets Are Overestimated.
With the exception of an order OF the
court removing him as trustee in connec-
ton with certain property in square a.
and the filing of a deed of assignment,
dated in 1888, of part of ''Woodley" to him,
there were no developments today at the
City Hall in the case of Thomas E. Wag-
gaman Members of the bar interested in
the matter continue to assert that the
value of the assets has been largely over
stated Nothing of importance is expected
to occur prior to the meeting OF the unse-
cured creditors. the 2lst instant, for the
purpose of electing a trustee.
Default in Payment Alleged.
Default occurred in payment of the inter-
est. IT was charged. and it was asked that
the property be sold and any surplus turned
over to the court for further direction as To
disposition If there should be surplus.
and that IL there should be deficiency
that all the defendants be held for the
same. Mr.. Pilling. in his answer, denied
that he was in any way interested in the
property. and said he was made trustee
without being consulted.
1t is explained that under the decree
signed today the property will be SOLD ana
questions of liability as to deficiencies or
disnosition of the surplus left until 1t is
learned how much is realized. Mr.. Wag-
gaman in his answer. stated that one OF
fhe houses in the row on which the mort
gage exists had been sold for $2.2Jo, aad
fhat he believed the property worth the
total incum brance of 81. 500. besides interest
and costs.