Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-08
IT'S ANSWER RECORDED
CATHOLIC UNIVERSITY MAKES
REPLY IN wAGGAMAN SUIT

The Catholic University of America has
filed Its answer to the suit Instituted sew
eral months ago by H. Rozier Dulany.
trustee Of the bankrupt estate of the late
Thomas E. waggaman. to declare null and
void the transfer by Mr.. waggaman to
the university of his art collection
The trustee claimed that the proceeds n.
the collection. which had been sold in New
York. should be applied to the satisfaction
Of the claims of the general creditors OF
Waggaman. on the theory that the bill OF
sale to the university Is defective in that
there never was any actual delivery OF the
art treasures and pictures to the Catholic
University. The collection. II will be re-
membered, was found in an annex to Mr.
Waggaman's house. $500 street. when
Trustee Dulany took possession OF the es-
tate.
The answer of the university filed by At
torneys Hamilton. Colbert & Hamilton and
c. ]. Bonaparte. the latter being Secretary
of the Navy, declares that November %
1901. Waggaman and his wife executed an
instrument in writing, in the form of a bill
or sale of the art collection, absolute on its
face, but intended by the parties as further
security for money from time to time be-
fore placed by the university in wagga-
mans hands treasurer for investment
amounting to about $4,000
1t denies the allegation that there was
an agreement not to record the bill of sale.
but declares that when Mgr. OConnell was
made rector of the university In the fall
OF 1908 he ordered the paper placed OF
record, at the same time demanding the
transfer from Waggaman of all the securi-
university.
Denial is also made by the answer that
any debts of Waggaman were incurred on
the faith of his possession OF the valuable
he. act hatn fc Qta ed
that announcement had been made in the
public press that Waggaman intended to
donate his art collection and gallery to tho
Catholic University. Such disposition of
the collection. II Is averred, was generally
credited to Waggaman.
Was Thought Solvent.
There was no thought in the public mind.
1t Is asserted. at the time the bill OF sale
was recorded other than that Waggaman.
independently OF the art collection the
value Of which was known to but few, was
amply able to meet all the debts he had
contracted.
AS to the question OF actual delivery OF
the articles composing the collection. the
answer sets forth that at the time the bill
of sale was made and UP to the filing OF
bankrupt petitions against waggaman he
held the position of treasurer of the uni
versity and such officer was the Gus
todian OF its securities. and that FROM the
date of the transfer he held the collection
not In individual. but in his Official ca
pacity an officer of the university.
In regard to the allegation of the COM
plant Of Trustee Duany that the bill OF
sale made with the intent to delay.
hinder and defraud the creditors OF Wag-
gaman. the university In its answer AYERS
that the creditors for the most part re-
ceived promissory notes and certificates.
reciting that the amounts due them were
secured on real estate represented by notes
included in List of Notes No. l. and other
lists and that none Of the creditors relied
upon or had any reason to rely upon the
art gallery as security for their dealings
with Waggaman. -.
The bill OF sale. it Is pointed out, was
made three years before the failure OF
Waggaman and was placed on record ten
months before bankruptcy proceedings were
instituted.
Finally. 1t is stated there existed no Sc
crecy in regard to the bill of sale, and 1t
is contended the instrument is perfectly
valid in law, it being received by the
Catholic University of America in good
faith and for valuable consideration. with
out knowledge of any fraudulent intent on
the part of Waggaman. any such Intent be-
ing strenuously denied by the university au-
thorities