Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-07-07
university answered the suit and issue
was Joined, but no decision was ever
reached
Bill of Sale on Art Collection.


Bill of Sale on Art Collection.
In November. 1901. waggaman had
given bill of sale to the univ ersity of his
famous art collection. No record of the
transfer was made until about the time
of Waggaman's failure.
Shortly after Mr.. Dulany was appointed
trustee the art collection was removed to
New York and sold, under an agreement
with the university that its lien, II any,
should be transferred to the proceeds Of
sale. The sale netted $3OO,OOO. which sum
Mr.. Dulany. by careful Investment. has
augmented to 1896 900. almost enough to
satisfy the university's claim as reduced
by the compromise.
In February, 1905, Mr. Dulany. as trus-
tee. filed suit to set aside the bill or
sale. on the ground that it was not
recorded within the time prescribed by
law. In its answer to this proceeding the
Catholic University set up the claim that
the sale was not absolute, as IL purported
to be, but was only to operate as a
mortgage for additional security for the
money due to the university. Issues
were Joined in this case, but no further
steps taken.
July %, 1904, shortly before bankrupt
proceedings were instituted against him,
Mr.. Waggaman and John Ridout, as
trustees. holding title to the Woodley
property. executed a deed of trust to Sc
cure the university the full amount of the
Waggaman Indebtedness.
In this property Thomas E. Waggaman
owned eleven-sixteenths, subject to en-
cumbrances amounting to $4,000.
Mr.. Dulany also sued to set aside this
conveyance After litigation lasting for
three years, Justice Barnard, about a
year ago, decreed the trust should be
set aside a preference.
From this finding the Catholic Univer-
sity appealed. The case is pending in
the Court of Appeals.
Attempts at Compromise.
For several months Mr.. >DuIany and
his counsel, Maddox & Galley, have been
striving to put an end to these various
litigations and to arrive at an agreement
to settle the university's claims.
June % last Attorney George E. Ham,
ilton for the university made the PROPOSE
tion to return to Mr.. Dulany the uncol-
lected notes taken from "list No. T. in
1902 if the trustee would allow the uni
versity to retain the sum of $94, ,5O7. so.
which it had collected from the securi-
ties, and pay in addition $4,000 in cash.
On this basis Mr.. Hamilton offered to
withdraw all claims of the university
against the bankrupt's estate unless 1t
was shown, on final settlement, that the
portion of their claims, when the uni
versity is to figure pro rata in the ex-
cess.
In concluding his offer Mr.. Hamilton
says:
In taking this position the Catholic
University believes that 1t is surrender
ing legal rights and claims in amount
much greater than the sum received, but
for the purpose of terminating litigation
and also because of sympathy for the
general creditors. II Is willing to adjust
on the lines indicated"
Sacrifice by Brother.
Attorneys Maddox and Galley. in speak
ing of the settlement offered by John ".
Brauner, as representative of John F.
Waggaman, praised the terms proposed.
Mr. Waggaman. they said, virtually sur
rendered $4,000 to the creditors Of his
brother.
John F. Waegaman withdraws his
claim of s10s. 49,. 81 proved in the bank
ruptcy proceedings. agrees to pay the
notes of Sl20550. which he Endorsed for
Thomas E. waggaman, and which were
by local financial institutions
prior to the failure. and all of which
were proved and allowed az claims
against the estate Of the bankrupt
He also agrees to satisfy notes drawn
gaman, aggregating $S8,95O. also proved
as claims against the bankrupt. and to
assume his brothers half Of the $80.OO0
joint indebtedness on lots in Wesley
Heights.
On his part Mr.. Dulany agrees to hand
over to John F. WAegaman for cancella-
tion notes Of the face value of $63.300.
Among these are notes amounting to
$4,000 held by the Catholic University.
which the latter tried to establich In
court. A verdict in favor of John F.
WaggamaN was directed by the trial
court. but on appeal this judgment was
reversed. and the case stands on the
calendar for retriel.
John F. Waggarhan. under the compro-
mise, retains his fourth interest in Wood
ley. after the payments of the trusts on
the property. and a half interest In the
Wesley Heights lots. belonging to him
and Thomas E. Waggaman In equal
shares. AS to all other claims, John F.
Waggaman Is to release the trustees
from all obligations to the bankrupt es-
tate. and Duiany will make no furt.:er
him.