The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-10-02
people fell over one another In their an xiet y
70 hand him money TO invest.

Up 70 this time be had made II his In
variable practice I'd secure investors by
straight out mortgages on the property
purchased for them, but as he acquired more
and more unimproved and consequently un-
productive holdings. and real estate gener-
ally began to deprsciate. he changed his
tactics. To some investors he gave col
lateral notes, to others his own personal
notes and to others simply receipt for
the money deposited with him.
He also purchased property and placed
! 1t In the names OF clerks In his ONCE. hay
ing them make out notes, which he in
dorsed. This latter fact Is tho principal
reason that Mr., Waggaman's creditors
have for believing that the item Of personal
gain did not enter into his latter day specu-
lations.
In making himself responsible for the pay
ment Of these notes made out by his en-
ployees and indorsed by himself he Is
believed to have pledged practically the
whole OF his large personal fortune.
But the results were the same as II Mr..
Waggaman had conducted a straight out
get rich quick scheme.
As a result OF his heavy dealings MIR.
Waggaman found himself land poor, and
there apparently is no doubt remaining
that during the last few years he robbed
| Peter to pay Paul, that he took the money
OF one investor to improve property held
in his own name, that he took money placed
with him by one client to reimburse another
client or to pay interest on the various
notes or mortgages outstanding against
! himself. The funds OF the Catholic Uni
versity in his hands, as treasurer OF the
institution, were used In this way. as was
Il u Iii 20 IAN
| and rich alike.
From time to time In recent years, as his
condition grew more unstable and his habili-
ties more involved, he shifted, without the
knowledge Of the investors concerned, the
various properties and securities in his
hands and juggied and turned and twisted
| the various lines OF his business activity in
such way that the unravellng OF the tangie
| will prove an almost endless task.
/ Apparently, during the past year or two
Mr.. Waggaman realized his condition but
hoped against hope working and waiting
for the miracle that alop" could save him
from bank ruptcy. Som" lime ago, in final
and desperate endeavor to redeem his fallen
fortunes, he invested heavily in an Alaska
gold mining company He was also inter-
ested in Greene Consolidated Copper. But
like everything else he touched Of late
these ventures proved unfortunate and
only involved him deeper.
For the past ten years j. W. Pilling OF
Washington has been associated with Mr..
Waggaman in business. 1t was generally
supposed that Mr. Pilling was partner OF
the latter as the firm name was Thos. +.
Waggaman i Co.. but since the bank ruptcy
proceedings were instituted this has been
denied. Mr. Pilling asserts that he was
not Mr.. Waggaman's partner, but merely
Joint owner with him Of various real estate
properties.
\. At any rate. Pilling had no more idea
than the business world Of Washington
that of recent years the Arm Of Thomas Z.
| WagRaman h Co. was tottering to Its fall,
and through his Endorsement Of various
notes for Mr.. Waggaman he will probably
b, heavy loser as result Of the failure.
This fact exempliTes in great measure
the manner in which Mr.. Waggaman con-
Quoted his business. The general office
o his firm, where the ordinary routine work
was transacted was on the first floor OF
his + street property. Mr.. Waggaman's
private Office was upstairs on the second
floor. his principal assistant being the di-
yorced wife Of his brother, Pierre Wagga-
man. and il is not too much to say that
until recently Mr.. Waggaman alone was
the ONLY person who had any accurate
knowledge OF the financial condition OF the
firm.
The Catholic University is Mr. Wagga-
mans largest creditor, as about 5000 0C0
Of the funds of the institution were in his
hands for Investment. The legal battle
no to date has been largely due to the fact
that some time before his failure Mr.. Wagga-
man secured the university by deed OF
trust on Woodley Park, his suburban prop
erty. which it is now asserted was pur-
chased with university funds. although
the land was acquired about five years
before Mr.. Waggaman became treasurer
OF the institution. The other creditors
Of the Waggaman firm allege hat in making
the deed of trust Waggaman illegally
made the university preferred creditor.
In addition to the university there are
known private creditors who are secured
in some measure by assets scheduled in
what is known as List No, L. and other
creditors, whose funds in Mr.. Waggaman's
hands are not secured at all except by his
receipt or personal note According to
nresent indications this means that credit
ora in this class will not receive 10 cents on
the dollar.
Stories OF hardship and suffering that
will result from the Waggaman failure are
coming to light daily. Only last Wednes-
day a retired Government clerk who lost
a., no-the savings OF lfetime-in the
crash, made an attempt to commit suicide,
He was a Catholic and he trusted Wagga-
man because OF his church connections.
There are many persons in Washington
to-day who have probably lost everything
thew had in the world through the Wagga-
man failure and who in the face OF the court
proceedings and the admissions OF the prin-
cipal himself still refuse to believe that the
man who was recommended to them by their
parish priest, the man who was treasurer Of
the Catholic University, who for years was
the custodian OF the Peters pence fund,
who stood high in the ranks OF the laity Of
the church and who was the friend and
business adviser Of Cardinals and Bishops,
has proved unfaithful to his trust.
There is one old woman in Washington
who until her SEVENTEEN birthday, several
vears ago, was employed in dry goods
store in this city. She was devout Catholic
and for forty years her little savings we're