Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-09-05
Local Churches Not Affected
by Waggaman Affair.
DIR. STAFFORD'S VIEWS
CARDINAL GIBBONS NOT TO AID
CATHOLIC UNIVERSITY.
Statement by Mgr. o'Connell to Balti
more Newspaper Regarding Future
Of the Institution.


| Church in. America. and a number of other
| distinguished Catholic clergymen OF thl.:
| country may be obliged to acrIfice a great
| part OF their personal fortunes I'm order to
save the Catholic University i'm America
| from financial disaster Ii has been also
| suggested that practically every Catholic
| institution in the District. as well as a
number of prominent churches here may
! find II necessary to make similar sacrifices
| I'm the interest of the university
1t is declared that Cardinal Gibbons con-
siders the situation confronting the Catho-
lie University as extremely serious. and
that the archbishop OF Baltimore has called
the clergy OF his diocese to meet with him
for the purpose OF discussing the affairs
of the Institution. Cardinal Gibbons IL
ported as expressing himself willing 10
lose his own private fortune In the aid
OF the university. and IT Is reported that
he has strongly urged the same course
upon other Catholic clergvmen.
1t has been reported that ST. Patricks
Church of this city had nearly $4,000 In
Mr.. Waggaman's hands. and that other
churches have similar sums at stake. In
addition to the churches the Convent OF
the Visitation faces a probable loss of
$1J0.0o0. and other institutions have large
sums involved. according To reports.
In regard to St. Patrcks Church. Father
Stafford of that parish said today that the
statement about his church being involved
I'm the failure of Mr.. Waggaman to the ey-
tent OF sJ0.Ooo WIS without foundation. He
said that the failure will probably have
effect the finances of st. Patricks
Church. Father Stafford said he did not
think Mr.. Waggaman's failure would have
any effect any of the District parishes.
as he thought none of them Is involved In
the failure.
Father Stafford also stated that Cardinal
Gibbons will not be called upon to aid the
Catholic University by draft upon his
private means The institution he said
" n w 10 IA a al
Heaviest Creditor
As has been stated In The Star. the
Catholic University is Mr.. Wsggamans
largest creditor. he having had nearly
$4,000 OF the funds of that institution.
while his bond as treasurer IL for only
ST.. 900 The bankruptcy proceedings
against Mr.. Waggaman threaten to destroy
the UNIVERSITIES claim to rights a pre-
ferred creditor and to force II to share
an equal basis with other creditors of Mr..
According to dispatch from Baltimore
this morning. Cardinal Gibbons was re-
luctant to discuss the report that he would
sacrifice his own private fortune to aid the
university. He Is reported saying:
Il can neither affirm deny the state
ments made by the newspapers to which
you refer. My only statement to the pub
lie is that l will render all the assistance
In my power to retrieve the loss sustained
by the Catholic University. Beyond that 1
have nothing to say
The cardinal declined to state whether
not he intended to call the clergy OF his
diocese to conference for the discussion
of the university's affairs. He also refused
to speak reeardng the reported request
made by him to the Catholic clergy OF the
diocese for financial aid for the institution.
Mgr. o'Connell Quoted ~
Mgr Dennis O'Connell. rector OF tho
Catholic University. who was I'm Baltimore
yesterday. presumably to discuss the uni
versitys affairs. Is quoted in Baltimore
morning paper saying:
There is no truth whatever in the state
ment that will not he open and ready
receive students this year. How the
port gained circulation do not know; but
l. president of that institution. emphatf-
cally deny that there is any truth whatever
in the report.
1.-The bankruptcy of Waggaman. you
say. gave rise to this report? Well. there
may have been some rumor to the effect.
but. then. all the funds of the Catholic
University were not In the hands OF Mr..
Waggaman The last collection made by
the institution is still IN the possession OF
several Of the fathers, while sum 90
money belonging to the knights OF Column
bus given to the university is still intact.
The sum Ia quite large. and In most secure
hands at present
"A large amount of 1t is invested in
gilt-edged bonds. Several thousands of dol
lars. generally thought to have gone up in
the Waggaman crash, are also secure for
the university
1t is stated that the circumstances con-
nected with the handling of funds of tho
university by Mr.. Waggaman have caused
a feeling of uneasiness among the Ameri-
can hierarchy; that 1t can hardly escape Il
sweeping censure from Rome. for permit
ting church funds to become involved In
speculation.
With regard to this phase of the case
the following statement has been pub
lished
Rome's Interest in University.
Time and again Rome has had to inter
cede with the church in America in behalf
of the university. One Of the objects OF
Cardinal Satollfs visit here was TO increase
the prestige of the institution, which has
always been favored at Rome. and last
year the new pope In response to an appeal
from Cardinal Gibbons. issued mandate
making 1t obligatory upon every bishop IN
the United States to contribute certain
sum yearly to its support and maintenance.
''AlI of THESE efforts that Rome has made
are now nulifed by Mr. Waggaman's en-
baIrassment, and the consequent exposure
of loose handling of the university's
finances. That Rome will remain silent
under this aggravation is almost nconceiv-
able.
"As one result of the waggaman en-
barrassment. 1t is probable that a great
loan and investment company. similar to
those operating in Belgium and Germany.
will be organized to handle Catholic finances
In America. Such a proposition has long
been before the church authorities hsre and
found earnest advocates In the late Arch
bishop Corrigah, Archbishop Ryan and
others of influence"
Regarding the Funds.
The interesting report has come out that
since the accession of the present rector
of the university, Mgr. OConnell. in April.
1908, the university has not intrusted any
moneys to Mr.. Waggaman and the fnan-
cal board of the institution has taken
charge of its investments. Since Apr.L
1903 the university has received from vari-
Gus sources 100000 which has not been
placed i'm Mr.. Waggaman's hands. and this
amount, saving portion which has been
spent for current expenses. is available
endowment to produce the income required
to maintain the university.
So far as can be ascertained the indebt-
edness of Waggaman to the university Is
$4,000. which Il believed to be amply Sc
cured.
Drop in Russian Securities.