The Washington times., 1904-10-08
Creditors Fearful They
Viii Meet With
Losses.
MR.. SOHON'S OPINION
Lawyer Points Out Weak
Places in Bankrupt
Schedule.

The climax OF the interest in the fail
ure OF Thomas T. Waggaman has un-
doubtedly been reached by the pubIica-
ton OF the long-expected lists OF his
assets and liabilities. Not only the ag-
gregate amount. but the details. show
what has been asserted all aloug-that
this is the worst failure in all respects
In the history OF this city.
In the list OF creditors all classes ap-
pear, from the servant girl. with her
pitiful savings Of $50 TO the Catholic
University OF America, which figures
as a creditor to the extent of over q
million. The question asked by every
body is, What viii be the ultimate loss
70 all these creditors?
The Assets OveTestimated.
The most conservative judgment Of
local hnauCieTs and real estate men Is
that the assets have been largely over
stated by Mr., Waggaman. perhaps, uu-
consciously. some say. For instance.
the property on Sixteenth Street ex-
tended and the Woodley Park holdings
do not, IL is asserted, represent, at this
time the money value ascribed 20 them
In the list CT assets
The same may be true OF other real
estate which figures In that list. Per
sons who claim TO have knowledge OF.
the Waggaman art gallery, and who are
recognized as pretty good Judges OF the
value OF paintings and other art treas
ures5 do not hesitate 70 declare that no
such amount as upward OF SsJ0. .009'
could be realized If the collection were
forced 70 a sale.
Needs Great Care.
II is agreed on all sides that only the
most careful management OF the estate
will yield even d fair percentage of the
claims against the bankrupt. The ut-
most Importance therefore, attaches 10
the selection Of the trustee by the cred
itors.
An enormous amount Of labor win be
involved in the settlement; the most del
icate questions OF law and fact viii have
10 be decided single mistake may
mean the loss of thousands OF dollars 10
some and of nearly everything TO others
lFOr this reason some OF the largest cred
itOrss especially the banks that hold
ANaggaman's paper, strongly favor the
selection not Of an individual, but a
trust company as such trustee.
no matter how skilled, cautions, and
honest an individual may be, they say,
the administration OF such an estate Dy
one man involves elements of uncertain
ly which would be eliminated IL ~ were
cOunded 70 the charge or a trust com
pany.
Suppose. they say, John Brown is Sc
lecL5d and takes the matter in hand
suppose further. that after having at
tended 20 the business for six months
OF q year. he dies. what then2 The
whole aualT must De gone over again
by his successor and thus not only is
valuable time lost and a settlement de-
-ayeds but another complication is added
10 the many already existing
Trust Company Best.
d.
a trust company all this would be OBJ
waited Such a concern is ready and
for just such work as would
be thrown upon it; its officials are Ia
miliar with the management and set
uemenJ OF large estates they have the
entire machinery needed in such a case.
they are habitUalIy conservative, and
their resources are ample TO assure all /
creditors that their interests viii not Doe /
ieopardized in any direction.
It is safe 20 assume, therefore, that
at the meeting Of creditors 20 be held
.Ie latter part OF this month the banks I
-eEre-elEtd there viii advocate the Sc
lection OF trust company as trustee lu I
preference 20 any individual, however /
trustworthy.
another question is involved in the /
selection or this trustee AS the case /
now stands Le is 10 De chosen by the /
aaa r.a-la-H b-ll1- III L--HlE ellD-l4 I
-- preferred creditor whose status Is .
hanged ly action of court I'm setting /.
aside fl deed or through some other /.
lo-rss. ana DE were Ihus thrown into /
-e franks of the unsecured there would !
arise new complication, one probably /
nor 10 De ciseutaugled except by adj /
llllpHal litigation. Indeed, law suits /
.4HlineTaoie are likely 10 be the crop
nat viii spring from the seed s0wu by /
-lis failure
Banks Among Creditors.
Although several OF the banks and
rust companies OF the city figure as
reditors in the list. they either have
lo individual interest 10 protect or are
To- "eu secured iu other ways as 10 feel [
nurely safe as 10 the outcome. as Tar
s they are concerned The National
safe Deposit, Savings, and Trust Com
,auV. fOT instance. IS Ia the 1f-f aa 4.
reditcr 90 the amount of about $4,000
ur the money IS really owing 90 some
f It's depgsitors. whose notes. from
tagEamau, were simply placed jr