New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-08-24
CATHOLIC UNIVERSITY HIT
TREASURER BANKRUPT.
Such Is Declaration of Banks in Pc
tjtlOn against WaggamaR.
lFuon THE TRIBUNE RUzzAU.I

Washington, Aug 23-The Catholic Universf-
" Of America one of the most important de-
nominatonal institutions of learning in the
United States is threatened with a staggering
financial blow. the immediate result of a joint
petition filed In the Supreme Court OF the Dis
trict of Columbia praying that Thomas E wag-
gaman. treasurer OF the university. be declared
a bankrupt and that on that ground deed of
trust. executed by Mr.. Waggaman in the amount
of SSI6, l6S 96 TO secure the university against
loss resulting from unfortunate investments OF
the universty's funds be set aside
In the absence or any statement from Mr
waggaman who. both personally and through
his attorneys refuses TO furnish TO the public
any explanation Of the peculiar legal proceed
ings of the last TWO days IT is. Of course, i'm
possible to Judge whether the university will
suffer the threatened loss or of the extent of
the loss which must ensue if the petition OF the
three national banks he granted.
II is a fact. however. that loss of any mag
nirude would prove serious for the university,
y hich has never been a financial success. hav-
ing been conducted on a higher plane than ex-
stng demands for advanced education seemed
10 warrant. Recent figures concerning the
status OF the university are not available but a
statement furnished The Tribune correspondent
in November. 1892 placed the assets Of the in
.titution, 'conservatively estimated" at slight
" upward Of S20O0O0O and the net liabilities
at Sl34OO6
Friends of the university and OF Mr. WaggG-
man still hope that the present embarrassment
in which the treasurer finds himself may be
successfully tided over II ts pointed out that
his credit has always been OF the highest, that
he still has immense real estate interests. and
that temporary assistance which it is hoped Will
be secured would enable him to realize on some
Of his holdings and thus enable him TO prove
loss.
SECURITIES DEEMED UNSATISFACTORY.
Irving Williamson. attorney for the Catholic
University. said to-day. referring TO the deed
OF trust for upward Of $S76,O
The deed was fled by Mr.. Waggaman and
John Ridout. as trustees. merely as an addl-
tioual security for the investments made with
the money belonging 10 the university The
amount mentioned in the deed represents the
exact amount the university has intrusted 10
Mr.. Waggaman. MI Waggaman he received
this money, in smaller amounts OF course, made
what he thought were good investments. secur-
ing himself against loss in the usual manner.
In readjusting the accounts OF the institution
certain Of these securities deemed
salts 'actory. and Mr. WaggamaI 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 now doubly secured
against loss having recourse TO the deed Of trust
or 70 NE Waggaman's bOndsTlaE in case OF
trouble.
Quite apart from the sensation created by the
possible loss 10 the university the Institution
of proceedings looking &c legal declaration that
Thomas E Waggaman was bankrupt created
a big sensation in Washington Mr.. Waggnnan
has long been considered one OF the wealthiest
Of the residents OF the city. has been recognized
as an art connoisseur and has enjoyed the high
est confidence Of the financial institutions Of the
city, as is evidenced by the fact that II the
m uchf frn ha han Thafr Of0r
petition to the court Is demand note OF $4,000
made by Mr. Waggaman in 1895 and another
demand note made BY John F. Waggaman in
favor of Thomas z WaggaInan for $4,000 IN
January. 1904. The total holdings OF paper
executed or indorsed by Mr.. Waggaman on
which the Second National, the National Bank
of Washington and the National metropolitan
Bank base their petition. aggregate $51.50O.
Some time al 20 it was reported that Thomas E.
Waggaman had given 10 the Catholic University
his entire collection of pictures and his library.
and that a bill of sale including both conec-
tons had been recorded. II is asserted to-day.
however. that no transfer Of these assets was
made at the time. nor ever contemplated and
that the actual transaction consisted OF giving
these assets as further security for certain in
vesrmeuts OF university funds. made by Mr..
Waggamau. and which proved most satisfactory
TO the directors Of that institution.
HANDLED OTHER LARGE SUMS
Besides handling the finances of the uni
versity, Mr. Waggaman controlled large
amounts OF money IN the aggregate belonging
20 other persons. both IN this city and away
from here, and II Is said that to some extent.
az least Mr.. WRggamaus personal notes were
given as security to those whose money he con-
trolled. For some years he has been engaged in
extensive oper-l,Ious in The suburbs OF Wash
inKtou. and has had much capital tied up in real
estate.
The deed Of trust is executed by Thomas f.
Waggaman and John Ridout and conveys to
trustees OF the university property known as
"Waggaman." formerly WoodIey, and, il is eX-
planned IS intended secure curious aggre-
cation OF small notes made by Mr.. Waggaman
ir favor OF OF executed by others and Indorsed
70 the order Of the Catholic University