Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-09-06
era, creditors move uneasily in their

eral creditors move uneasily In their
seats.
Mr. Gardiner asked the court to appoint
receiver In equity. that the lienors
might have preference over the unSe-
cured creditors in the settlement OF the
estate.
Prefers Trustee in Bankruptcy.
Mr.. Williamson declared that the credit
ors not secured by list No. l far outnum-
bered those secured by that list. He asked
/ for the appointment of trustee in bank
ruptcy. SO that the estate could be admin
istered by one person, for The benefit of all
creditors. and guaranteed that the notes
now in the custody of Mr.. Waggaman's
clerks would be preserved and guarded.
and turned over to such trustee absolutely
as they are. He claimed receiver would
only increase cost and accomplish no good
whatever.
In response to a question why the sched
uie of Mr.. Waggaman's assets and liabili-
ties had not been fled Mr.. Williamson said
such action was not necessary. Subsequent
argument brought out the statement that
certain checks given by Mr.. Waggaman in
July last were returned by the bank, mark
ed NO FUNDS. 1t was also intimated that
the transfer on the deed of trust to the
Catholic University of America for nearly
Sh".WD was an attempt to prefer that in
stiiution as against the other creditors.
Mr. Hamilton and Mr.. Bonaparte both
answered this in the negative. but had no
proof in court to support their statements,
whereupon Justice Anderson issued the or
der giving them until day after tomorrow
at 10 O'Clock to file such papers and proof
as they wish to make matters of record.
The Answers Filed
The answers of Mr.. Waggaman in both
bankruptcy and equity proceedings follow:
Bankruptcy - That said petitioner is
mistaken In supposng that any one
liable OH the notes referred to has
access thereto The fact is that
SAID notes are in charge of one
clerk. who is not a party to any of the
notes nor In any way interested except in
the preservation thereof Said notes
entirely safe in his custody until the ap-
polhtment of trustee in bankruptcy and
for the reasons heretofore set forth in his
answer filed in the Equity Court and he
submits that there is no necessity what
ever Tor the appointment of custodian or
receiver.
NO payments are being received on ac-
count of the securities and they remain as
they were before the institution of bank
ruptcy proceedings and will remain in the
trustee. Respondent further says that the
allegation that he is a hopeless bankrupt
and without further interest in the preserya-
ton OF his estate Is most unjust and is abb
soiutely without foundation insomuch as
he believes that said estate will pay in
full and leave surplus if properly admin
lstered and not burdened with useless costs
or commissions.
1t Is true that in this matter he suggest
ed the appointment of a receiver. but that
vas not because such appointment was
necessary. but for the purpose of avoiding
dual receiverffiship and increased costs He
tten prays that this rule as to a receiver
may he discharged
Answer to banks. in equity-Responden
admits that he is indebted to the petition
ing creditors in the amounts set forth in
SAID petition. and that said debts are rep
resented by the notes therein recited Re-
spondent is without funds at this time to
tS hn oh
present payment of the debts of other cred
itors. who by reason of the institution of
TINS proceeding are pressing for the settle
ment of their demands.
But respondent believes that with proper
management his estate will yield a suffi-
cient amount to pay all claims against him
and leave surplus. He admits the exc
cution of the deed of trust referred to in
said petition. and says that the same
was given and received by the Catho-
lie University as additional security
spondent Of the institution of bankruptcy
proceedings in considera ton of the time
allowed. as respondent thought he would
be able to meet the payments therein spe-
clfled and that the agreement would be for
the benefit of his estate. the fact being
that portion of the fund thus additionally
secured was used in and for the develop-
ment of Woodley Park.
University Able to Meet Expenses.
Doctor Stafford, rector of st. Patrick's
Church. in speaking of the condition of the
Catholic University in view of the Wagga-
man affair, said that there mi ght be for a
time shrinkage in the funds in conse-
quence of the Waggaman trouble, and per-
haps temporary suspension of interest;
but. admitting all that, al the next meeting
of the university board it could safely and
truly be said there would not only be
money enough to meet the current ex.
penses of the university but something
lett over Tor sinking fund. and that
dollar of trust money would be invested
in frst-class securities. Doctor Stafford
further said that in this matter he was
speaking with authority.