The Washington times., 1904-09-10
Cardinal Gibbons De-
clareS He Was So
Informed.
NO ACT OF BANKRUPTCY
Explains Circumstance I'm
der Which Trust Was
Given.

Cardinal Gibbons in his official ca
pacity as chancellor of the Catholic Uni
versity Of America, today denied that
Thomas +. Waggaman had committed
an act Of bankruptcy on July . last, to-
gether with John RidOut by placing on
record a certain deed Of trust owned
by Thomas Waggaman in the District
of Columbia known as Woodley Park,
Pretty Prospect. and Woodley.
This statement is made by Cardinal
Gibbons in his answer 70 the bank
ruptcy proceedings instituted against
Thomas Waggaman a few days ago by
three local banks which claimed TO be
creditors to the amount of about $4,000.
Not Preferred Creditor
1t is explained that the deed of trust
referred to was made by Waggaman to
secure the Catholic University in the
amount OF sS76, SO, representing certain
notes. which We're described and which
he guaranteed the payment of by mis- in
dorsement. 1t is also denied that Wag-
gaman executed this deed OF trust to
the university for the purpose of MAX
ing it a preferred creditor.
Cardinal Gibbons further saws that
Waggaman. at the time Of the execution
OF the deed Of trust. was treasurer OF
the Catholic University. as he had been
FOR many years. From 1892 at various
times, money to the amount named was
placed in Waggaman's hands for in
vestment. il being part Of his duty TO
receive all money paid to the university
as capital, and 10 invest 1t 70 the best
advantage.
Called TO Account.
The cardinal goes on to state that
in the latter part OF 1895 the university
called unon Waaganan TO deliver over
the securities held by him FOR Il. and
20 assure il against loss, by reason Of
The Investments made.
Upon examination Of these securities
by committee appointed by the uni
versity. the cardinal says, they were
considered unsatisfactory and insult
fient. In the early part Of May. 1904.
The committee requested Waggaman to
give other and additional security for its
funds
When this request was made Wagga-
man stated to the committee that in his
opinion the securities given We're ample.
but ne was desirous Of doing all In his
power to comply with the wishes Of the
university. and would consider their re.
quest. In a short time he informed the
university what could be done In that
regard
Million Over Liabilities.
At an interview on this subject. in re-
sponse TO a question by one OF the COM
mittee. Michael Jenkins. Of Baltimore.
Waggaman stated that his financial
condition was excellent. and that over
and above all liabilities he was worth
considerably more. certainly not less.
rr IL
ative estimate.
II is further stated WagCaman was
then asked as 10 the use he made OF
moneys placed in his hands for invest
ment by the university He answered
that nearly the whole Of It had been
used I'm the acquisition and development
Of suburban property. and IN very large
part in recent Improvements In Woodley
Park. This statement the Cardinal says
is true.
Title Demanded.
The committee. il is averred. Informed
Mr.. Waggaman that the title TO the
property made valuable through the ex-
pendIture Of the Universitys money.
should. as a matter OF conscience and
equity. be vested IN the university. or
some one who would hold title for IL.
The university contended that Il was
in reality the owner OF the property.
To this Mr.. Waggaman objected only
on the ground that the conveyance to
the university or a trust for his in
debtedress 70 the university would have
a tendency to embarrass financially any
business man in Washington. He prom
ised. however. 10 consult his attorney
and expresE the hope that in a few
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