Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-08-16
Provident Relief Association
Is Taken Into Court.
FAILS TO PAY DIVIDENDS
Stakeholder Declares Earnings Am.
pie for That Purpose.
FAMILY AFFAIR, SHE SAYS
Alleges Members Of Board of Dj.
rectors Secure the Profits by
Indirect Means.

Alleging that John Brosnan. presi-
dent of the Provident Relief Associ-
alton of CIT F street northwest. and
Timothy Brosnan, his brother, treas
urer Of the company. are conducting
the concern as a family affair to the
exclusion of her rights as a holder Of
forty-one shares Of the capital stock
of the association. Mrs. Catherine Rich
ards today asked the District Supreme
Court to name q receiver for the asso-
citation. She requests that the affairs
of the association be wound up and
distribution of the assets made among
the stockholders.
Although the company does an annual
business Of 100000 she alleges the board
Of directors refuse to declare a dividend.
She alleges this action is taken to pre-
vent her receiving any income from her
holdings and for the purpose OF forcing
her to sell her stock to the Brosnans at
figure she considers inadequate.
Accuses Board Of Directors.
Mrs. Richards AYERS that while the
board of directors-composed of John and
Timothy Brosnan, brothers. John Bros
nan, jr.. son Of the president, and Thom-
as w. Bramhall, his son-in-law-refuse
to make or declare dividends. they ac-
complish the same results so far as they
are personally concerned, by making, she
charges, extra allowances to themselves
for salaries; by the creation among them
selves of unnecessary offices, carrying
with them additional compensation; by
the use and occupation OF the corpora
tions real estate at nominal rent; by pay
ing excessive rent for its home ofiice and
by manipulating the indefinite items OF
expenditures appearing in the annual re-
ports
Mrs Richards tells the court that the
west. worth 5000. in which Timothy
Brosnan lives and for which he pays only
$50 a month rent. Premises n L street
northwest. she says, was purchased Tor
$1,000 with the company's money, and Is
occupied by John Brosnan and John Bros
nan, jr.. at a monthly rent of $50. Tim
othy Brosnan. she declares, owns the Of
flee building in which are located the COM
pany's offices. but despite demands OF the
plaintif and her counsel she has been un-
able to learn what rental Is charged the
association. She alleges that he Is receiv-
ing an amount In excess OF the rental
value OF the property.
Brother Took Forty-one Shares.
The Provident- RelSef Association. ac-
cording to the bill filed by Attorneys
George C. Gertman and John Ridout,
was incorporated February q. 1893,
with a capital stock Of $4,000. divided
into 200 shares of $25 each. William
O'Mealey. a brother Of Mrs. Richards.
subscribed to forty-one shares Of the
stock. and was vice president and
director of the company until 1902.
when he was made secretary. which
office he held until 1908. Her brother's
efforts. she declares, placed the COM
pany on a firm financial footing. and
then, she AYERS. the BrOsnans sought
to buy the entire stock issue. All the
subscribers sold to them. she says. ex-
cept her brother. and when he de-
clined. she alleges, he lost his ofice
and was dropped from the directorate.
Since that time all information OF the
company's business. she AYERS. was de-
MED her brother prior to his death April
o. 1908, and to her since. The brothers
holdings came to her at his demise.
Previous to her brothers removal. Mrs.
Richards says, the company paid divi-
dends. and in 1907 declared a so per cent
dividend, which was paid. She declares
the business is as good. IL not better. than
in that year. and that with proper man.
agement dividends should be annually
paid
She charges that the company has not
recently filed the annual reports required
of corporations in the District. and al
leges this as a part Of an alleged scheme
10 keep her in ignorance OF the real con-
dition of the company's business and to
coerce her to sell her stock at q sacri-
flee.