Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-12-01
Catholic. University Loses in
Waggaman Surety Case.
LOANS AT ITS OWN RISK
Bondsmen Absolved When Notes
Were Accepted by Trustees.
OPINION BY JUSTICE ROBB
Appeal to United States Supreme
Court Expected-District Milk
Case Among Others Disposed Of.

The Catholic University of America may
not recover against the estate of the late
DR. Daniel B. Clarke the s21e.eGO penalty
of the bond ct the late Thomas e. Wag-
ganan. treasurer of the university. ac-
cordng to the opinion of the District
Court eff Appeals. rendered today by Mr.
Justice Rebb. The appellate court sus-
tains the action Of Justice Wright of tue
District Supreme Court. who directed a
verdict in favor Of the sureties on the
bond. An appeal by the university to the
United States Supreme Court will pYoba-
bly, he taken:
Although the bond was for 100000 the
university Sought to- recover only S79.-
523 Al, representing money for investment
received BY wagg81nan Subsequent to the
execution of the bond:
Justice Robb holds that n Waggaman
did invest the money fntrusted TO him
and did surrender the evidences OF the
liable under the bond in the event Of
disaster. for the bond did not attempt to
guarantee the safety of the loans. IT
merely guaranteed that money coming
into Waggaman's hands for investment
would be accounted for.
Justice Robb's Opinion.
"koaning the funds of the university"
says the court. ITO himself upon made
uuate security was not in good faith
investing such funds, but if the university
with full knowledge OF the facts receg-
niaed and adspted such loans it could not
subsequently question Waggaman's au-
thority to make themj nor could the uni
versity repudiate the transactions in part
and ratfy them in part.
eve are impressed with the contention
e fhn O
when the university. under the conditions
disclosed by the record. accepted and re-
tained the notes and collateral security
evidencing tfle loans. the making of which
IL now contends constituted breach of
trust ii absolvea the sHreties on the bond
from further liability. Knowing ali the
facts. the university. instead of repndiat-
ing the acts Of Waggaman constituting
breach Of his bond. deliberately adopted
another course. accepted and retained the
notes and obtained from Wsggaman addi-
tiena1 security that they would be paid.
1T thereby adopted and ratified his acts
and cannot now be heard TO say that the
loans were made without authority. The
university also. after knowledge of
breach of trust by Waggaman. without
notice to the sureties. agreed with Wag-
gaman to defer the collection of its
claim against him to g. day certain"
The court concludes that tbs sureties
were clearly entitled to be consulted be
their interests was made, ana not being
consulted are justified i'm standing on
the letter OF the bond.
Milk Case Appeal Dismissed.
The appellate court. in an opinion by
Chief Justice Shepard. dismissed tn ap-
pea! OF the District Of Columbia from the
Judgment Of the Police Court finding VIII
liam F. Burns, a milk dealer not guilty
Of violating the law in offering for sale
milk which contained less than 31s per
cent of fat. The court held that 1t was
without Jurisdiction. relying on Its pre-
vious opinion in the Evans case. in which
1t held that the United States had no
right OF appeal from judgment OF &C
quittal in criminal case.
The Police Court held that the act OF
February II. 1898. relating to the sale
of adulterated food was repealed by the
pure food act of June 30, 1906. 1T Is
Unfortunate" says the chief justice,
that the Police Court did not content
itself with quashing the information and
Diminishing the prosecution, in accordance
with its view of the law, without going
further and adjudging the defendant not
guilty While it seems probable that the
court took an erroneous view of the law.
we are without jurisdiction to express
an opinion upon the question by reason
Of the judgment actually rendered"
Other Gases Disposed Of.
The District Commissioners may insti-
tute land COMBINATIONS in their own
names but when the act under which
proceedings arc had requires the petition
to be flied within thirty days the time
computation must include the date of the
act. declares Justice Robb In an opinion
sustaining the dismissal of proceedings
to condemn certain land.
The property sought to ne coTi""1ned
helonping to Eliza beth Moore and others
who opposed procee lings under a petition
filed thirty-one days after the passage OF
the act.
Other opinions rendered today incluGe,
Rondinclla agt. Southern Railway Cor
nany affirmed: Movers agt MAYHEM. at
tirmed: Cosey agt. Smith. dismissed: llor-
ton ast thinner, decision of commits
sioner of patents affirmed.