The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-10-04
BERKELEYA. A. IN TROUBLE
DIRECTORS OBJECT 10 THE PAR
NEWT OF Dividends.

Two Msmbe er the Board Bri.s Salt
Against The Others. Aiiesing Impair
NEST or the Assoeiatior's Capital stock.
Papers have been filed in the Superior Court
by Manierre Brothers, attorneys for Charles f.
Manierre. in an action brought to restrain the
directors of the Berkeley Athletic Association
from declaring dividends on the stock OF the
association and enjoining them from paying
dividends already declared. The action also de-
mands the repayment TO the association of any
dividends already paid out by the individual
directors, who voted to declare a dividend at q
meeting Of the Board early in the year. Mr..
Manlerre claims that the stock OF the company
has been impaired in the seven years OF its ex-
istence nearly one-quarter Of the original value,
S10T,500. The five defendant directors,
John NJ. Bowers, John Bloodgood, J. Clarke
Read, F. lie Roy Satterlee, and Thomas T.
Sturges, through their attorneys, Bowers &
Sand, deny the allegation of the impairment Of
stock, claiming that the property OF the asso-
citation on Forty fourth street has increased In
value and Is to-day worth much more than at
the time Of the associations inception. They
petition the court TO set aside the motion of the
Manierres. The case is set down for Oct. 10 be-
fore Judge Gildersleeve.
Charles 4. Manierre said yesterday afternoon:
II am a director In the association. as ia my
u NV dhu 4 hNlu y
of stock more than the entire amount held by
the defendants. We are also backed in our
action by a number of large stockholders,
s Should We have only r. JOHN %sn' $. White S9as the Es pr RIlsiiPiIi
ton; He at first got into II as stock;
holders, the parents of his pupils. They, of
SS%TsH; T%5' n Sil'iGE DO to 0a SSf sss 1s' tGSss 81 q The tSs
school in which their sons were being taught,
but when We outsiders. who put our money into
| thn affair Inaraly M n httGinana vantuFp found
that our President was deyoting himself to the
success of his own school on one side Of the
street to the sad neglect Of our association on
the other, we had an Investigation.
The result of the investigation was that we
capital had beefn impaired and q mortgage Of
SoO,000 rests on the property We found that
that he n!t %a : m esod rs T WSit nni nna an" nnf aiTh 10 ~;
association. Hc had the use Of the theatre for
his school one night, In each week, and we dis
which il WAS y rented y to outsiders. 81 course the
rent went to him. He acknowledged this charge
we deposed DR.. White from the Presidency of
the association. But since then he has been
One notable instance is j. Clarke Read, q teach
er In the school. and Whites brother-in-law;
b, uih nr aSS T%iss bas Is sn a business ST. %oS oorpe ssndiIs
representatives of his Berkeley School to all
parts of the country 70 athletic meets, and thus
and in other ways advertising his school. In
the defence's valuation Of the property they in
clude all the furniture at the original cost. The
years sI they have increased in Value to $1,000
That is absurd. The buildings. two gymnasiums,
and "a theatre. for which we can get no license,
worth more without them than with them"
Here Alfred Manicrre took up the story.
I'm November, 1892" said he. !" there was a
contest for the control Of the association, which
resulted in a compromise Board OF Directors,
and provided that White should take a lease OF
all property of the association for two years,
paying taxes, expenses, &c, and also pay TO the
association a sum equal to 4 per cent. Of the cap.
ital stock. Since then he has been running the
association solely for the benefit of j. :. White
and the Berkeley School. That isn't honest,
and II isn't lawful, as we propose to show him
by heading off his latest move through his di.
~rectors. to pay dividends when the capital stock
is impaired and there is no money in the treas
ury,. The spirit of the compromise has been
violated"
Dr. White said last evening: THE Berkeley
Athletic Association Is entirely separate from
the Berkeley School. Of which ! am prin.
cipal. I am not a director in the association
and have. nothing to 40 with its management,
except that two years ago leased these
buildings from the association and guar
anteed TO pay, besides the expenses, taxes
&c. four per cent. a year on the capita
stock, which is about $4,000. In the eighteen
months that ! have had the lease | have paid
$12. 900 and also all expenses. The money be
ing paid In. the directors are ready to declare Q
dividend, but the Manicrres got out nm injunc
ton restraining them from paying the money
and brought "A suit against them as individuals
! deny the allegation Of, acknowledgement which
they make against me-"