Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-09-14
Early Decision Expected in
Waggaman Litigation.
PROCEEDINGS TODAY
INITIATION THAT DEFENDANT
WILL BE ADJUDGED BANKRUPT.
Discussion by Attorneys Of Phases Of
Case Under All of tho
Petitions.

Justice Anderson, sitting In the Supreme
Court of the District of Columbia, today
ordered that all securities and property
OF Mr.. Thomas E. Waggaman. involved in
the pending bankruptcy proceedings be
taken charge OF by the United States
marshal. to be held by this officer until
MIR. Waggaman shall have been adjHdi-
Gated bankrupt and trustee selected by
the general creditors. The order was signed
at o'clock.
This action Is the direct result. and. in
fact, the only result, of the petition first
filed against Mr.. Waggaman In bankruptcy,
and which has occupied the attention Of
the court for ten days. The petition was
not dismissed, nor was Mr.. Waggaman ad-
Judged bankrupt, but the proceedings are
to remain in status quo until action Is
had on what Is known case No. 361, the
rule in which Is returnable September II.
and which may be acted upon September %,
allowing the lapse Of the five days re-
quired by law.
This is the petition filed by Attorney J. j.
Darlington and others, alleging MIR. Wagga-
debts as the ground for adjudication, and
Justice Anderson intimated that Mr.. Wag-
gsman would be declared a bankrupt when
answer Is made in this case.
In giving his decision, which was listened
to attentively by a large audience of attor-
neys and others who have followed the case
through Its several stages. Justice Anderson
explained that he did not care to take posi-
tive action in the first bankruptcy case.
filed by Attorney Jackson H. Ralston, be-
cause the ground set forth in the petition
was that Mr.. Waggaman committed act
of bankruptcy in making a deed of trust to
the Catholic University He said that from
expressions of counsel on both sides It was
clear an appeal would be taken by the
attorneys on the losing side. and that this
would delay the final adjudication months
and perhaps years Judge Anderson ex-
planned that in order to adjudicate Mr..
Waggaman a bankrupt in the first case he
would have to regard the effect of the deed
as making a preference, and this would be
strenuously fought by counsel for the uni
versity.
Second Suit in Bankruptcy.
The second bankruptcy suit was not actes
upon because of the necessity of first prov
ing certain claims OF the petitioners to ascer-
tain whether the amounts set forth were suf-
ficient to bring the cause within the jurisdic
ton of the court. The trouble here was
stated as the delay which this proving
would require Then. touching upon the
third suit, which in the petition sets forth
) the act of bankruptcy the admission
made by Mr.. Waggaman in his amended
answer the court held that there seemed TO
BE- nothing in the way of adjudication unde"
that petition. The only thing claimed In
the petition being admitted by Mr.. Wag-
gaman. the court said 1t could act with
poSitiVeness and clearness. with no fear of
appeal or other action which might delay
matters. So, while not specifically SEATED,
it was generally understood by the pau-
TONERS attorneys this morning that the
adjudication Will be made September %.
The appointment by the court of the mar
shall to take charge of the famous List No.
l. and such other securities as are involved
in the proceedings. in line with the Sug
gestion made by Mr.. Darlington, and ex-
planned exclusively in Yesterdays Star. The
ma jority of attorneys seemed agreed on
this point Mr.. Ralston said the marshal
would not be BILE to collect rents and pro-
test notes. but this authority, the court i'm
piled. would be found somewhere in order
that neither the estate nor the creditors
would suffer.
The Courts View.
1t is very clear in my mind said Justice
Anderson. that there should be only one
administration of this estate; that it should
not be broken up and part administered in
bankruptcy and part in equity. 1t is also
clear to me that the appointment must be
made in one of the bankruptcy cases Until
this is done, however, it is the plain duty of
the court to lay hands on such of Mr.. Wag
gaman's property is involved"
In the course of his decision the court
took occasion TO cenSure Mr.. Waggaman
and his attorney for making certain recon-
mendations as To the trustee. He declared
that the court did not recognize the right
of Mr.. Waggaman to make any recommen-
dations OF this character but that the trus-
tee must be chosen by the petitioning cred
itors. He said the admitted bankrupt had
no choice or say whatsoever in the matter.
The court said further that Il had not been
necessary for Mr.. Waggaman to file his
schedule of liabilities and assets, but that
such action might have thrown some light
on the case. Had the petition been voIun-
nf ifNv-x
filing of the schedule would have been es-
sentiaI
In concluding Justice Anderson said
Il believe that if the property Is taken
charge OF Immediately by the marshal the
interests of all creditors will be best sub
served The expense will be small. when
compared TO the magnitude of the estate
and the marshal can do everything neces-
sary to collect rents and notes due. l will
say, however that If the opposing counsel
are not disposed TO hasten the selection of
trustee, after an adjudication is had, that
Is If the court believes there is any unneces-
sary delay in this regard. it may have TO
appoint receiver after all and proceed
with the administration of the estate
Consolidation of Two Causes.
At the conclusion of Justice Anderson's
opinion the attorneys discussed before the
court the ACCESSIBILITY of a consolidation of
the last two causes, under the last num-
Der but this was not done, ii is stated be-
cause the last case is perfectly clear, while
the other case is tainted by the fact that
the claims of the petitioners have not been
proved The case upon which action will
probably be taken is known as Bankruptcy
No. 3tl, in re Waggaman, the petitioners
being the Columbia National Bank NJ
Agnes Gardiner and John Walter ST. The
attorneys are ]. J. Darlington b. F.
Leighton, II. W. Sohon, c. c. James and
Joseph ID. Sullivan.
The answer OF Mr.. Waggaman in case No.
$50 was hled this morning when the court
convened at 1890 o'clock by his attorney
MI irving Williamson. The answer was
pra tucally the same as its predecessors
setting forth the fact that the funds are
safe IN the hands Of Mr. Waggaman and his
clerks, and that the lists of securities will
not be tempered with As in his other an
s"ers Mr.. Waggaman asked. If a trustee
D. appointed. that a trust company be Sc
ietteu- MS was the suggestion which the
court censured in it's opinion later
Mr.. Ralston, who represented the petit
tonefS In this case, cited the fact that
n hn ,Afn