The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-09-11
THOS. e. WAGGAMANS FAILURE.
Recording OF Deed Of Trust in Favor OF
Catholic University Was the Cause.

WARRINGTON, Sept. 10.-The story Of
how the present financial embarrassment
OF Thomas E. Waggaman, reputed to be one
OF the wealthlest citizens of Washing ton
was brought about was told to-day for the
first time In an answer filed by the Catholic
University Of America in the Supreme Court
OF the District to petitions Of creditors OF
Mr.. Waggaman that he be declared bank
rupt.
The recording OF deed OF trust by Mr..
Waggaman for $s7e,18s In favor Of the
Catholic University, of which Mr.. Wagga-
man was treasurer, was the cause of the
legal action that has been taken against
him by banks and individuals. who desire
either that receiver be appointed to take
charge Of all interests. or that he be declared
a bankrupt In its answer the university
declares that the deed OF trust given to it
as security by Mr.. Waggaman was not for
the purpose OF making the university pre-
ferred creditor. and asks that the bank
ruptcy petitions be dismissed.
1t Is declared by the university that the
amount for which the deed Of trust was
given represented the aggregate of it's
funds deposited with Mr.. Waggaman for
investment The interest, 1t Is said, has
been paid promptly. Mr.. rWaggaman was
called upon In the latter part OF last year
to deliver the securities to the university,
committee representing the university.
whose purpose was to have him give addi-
tional security for the funds Of the uni
versity placed in his care:
Mr. Waggaman declared to che committee
that the securities were ample, that his
financial condition was excellent and that
the surplus OF his assets over all liabilities
was u 900 900. The committee questioned
Mr.. Waggaman as to the use made by him
Of the funds received from the university,
and he explained that nearly all of 1t had
been used in purchasing and developing
suburban property.
Mr.. Waggaman objected to the sugges-
ton Of Charles j. Bonapartc, q member
erty improved by the Use OF the university's
money should DO vested In the unive rsity.
Mr., Waggamans objection was made, he
said, only on the ground that conveyance
embarrass any business man. and he asked
time to consider the matter. Later on,
Mr.. WaEgaman agreed to give the trust
on condition that 1t would not be recorded
until ninety days after July 10, 1904. He
said that thin that time he would be able
to pay Of a large part and perhaps all Of
his indebtedness to the university. An
arrangement was reached that the trust
should not be recorded prior 70 Oct. Is,
unless thu filing Of suits caused Mr.. Wagga-
mans financial condition to become
impaired.
II IL stated by the university that when
II received the deed OF trust as additional
security for the money placed In Mr.. Wag-
gaman's care II had no know ledge Of his
financial embarrassment or any legal pro-
oecdings to be brought against him. Cardi-
nal Gibbons, as chancellor OF the unive rsity,
signed the answer.
Another petition for the appointment OF
a receiver for Mr.. Waggaman's property
was filed this afternoon by the Columbia
National Bank, one OF his creditors,
Disturbed Conditions I'm Paraguay.
WASHINGTON. Sept I0-The State De-
partment received a cable despatch to-day
from United States Consul John N. Ruffin.
at Asuncion, Paraguay, saying that the
conditions very much disturbed. GVI1l