Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-07-07
CATHOLIC UNIVERSITY
AGREES TO TAKE PART
Brother of Dead Financier Also
Yields Claims Against Property.
COMPROMISE IS RATIFIED
Objections Must Be Filed in Court
Before July 2O-Trustee Holds
Out Hope of Even Larger
Dividend.

The general creditors of the
late Thomas E. Waggaman, for
mer treasurer of the Catholic
University OF America. who was
adjudged bankrupt in September,
1904, will get one-fourth OF their
money back provided they accept
the terms OF a compromise ef-
fected by H. Rozier Dulany, trus-
tee OF the bankrupt's estate, with
the Catholic University and John
F. Waggaman, brother of the de-
ceased, two of the principal credi-
tors.
Court Ratifies Agreement.
Mr.. Dulany today submitted the two
propositions to the court. Justice Stafford
signed a conditional order of ratification
This means that unless valid reason to
the contrary be presented to the court be-
fore July % the compromise will be con-
frmed and the trustee directed to put its
terms into execution.
The two creditors had claims aggregat-
ing more than $1.OOO,OOO- If they had
been able legally to sustain their claims
the general creditors would not have
received a farthing
Attorneys Maddox & Galley, counsel
for the trustees. in advising the accept
ance Of the compromise, pointed out that
much credit Is due the trustee for bring
ing abont such an arrangement from
what At first appeared oall observers as
q hopeless financial wreck.
The distribution to the creditors will be
delayed for some time. 1t is said, because
OF the remaining holdings at woodley
and Cleveland Park. and the realizing on
some Of the notes which figure in the
compromise. AS soon as the cash is
forthcoming from these sources payment
viii! be made, it is expected.
Terms Of Agreement.
By the terms of the agreement the Cath
Ole University accepts about $35OOO0 in
cash In lieu Of its claim of SS76 1886
John F. Waggaman surrenders claims
aggregating 1Uo,4s5-S2; agrees to pay
notes amounting to $12O.55O which he
had indorsed for the accommodation Of
THOMAS f. Waggaman; to satisfy other
notes made by him and indorsed by his
brother to the extent of $780, and to
assume entirely a trust of $50, 600 secured
on lots in Wesley Heights, owned jointly
oy the brothers. Mr. Dulany Is to can
eel notes of John f. Waggaman aggre-
eating SIS, 500, and to make no claims
against him on account of notes purport-
Ing To have been made by him.
Mr. Dulany advises the court that after
settling with the Catholic University and
Mr.. WaggaNan on the terms proposed
the proved claims against the bankrupt's S
estate will be reduced to 81. .392. 173OS. The
cash in his hands and the assets esti-
mated at a value far beloy the appraisal
made by the official appraisers. he says.
will net $534.O 900.
Twenty-Five Per Cent or More.
On this basis he figures a settlement
with the general creditors for - per cent
of their claims
Should the sale of the prope-,ies at
Woodley and Cleveland Park. together
with the notes 10 be received from the
Cathoiic University, under the compro-
mise. net larger sum than the conserva-
tive estimate now placed on them, Mr.
Dulany expects 10 be able to pay as much
- 80 per cent 10 the creditors.
Prior to 1902 the Catholic University
held twenty-five notes secured on List
No j. which figured so prominently in
the reports Of the bankruptcy proceed
1nss IN 1904. These notes aggregated
Ss16. 1898. the amount of the money
which had come into the hands of Thom-
as r. Wagsaman as treasurer OF the uni
versity.
IN lN2 the officials of the university
made demand on Waggaman TO take out
OF the securities. covered by list No. L.
notes aggregating the debt. Waggaman
acceded-
In l5S Jude Stealey OF Parkersburg
w Va, who held many notes. secured
III list No - fled a suit against the
Catholic University for the return of tie
securities. alleging. among other grounds
that he had az much right to lien on
the notes as had the university. The