The Miranda brothers had acted as overseas sales agents for Brewster before trouble over their dealings in Bolivia sent them to prison at Lewisburg, Pennsylvania. The Navy then removed James Work from the presidency and installed a Naval Academy graduate who appeared capable of reforming the company in spring 1941. About five months later Work regained influence, the Miranda brothers were free, and the reforming president was removed in favor of leadership acceptable to the old group. Stockholders responded with a $10 million lawsuit alleging close dealing and inflated commissions. The reversal shows why an isolated management appointment could not fix Brewster without durable control over ownership and governance.
Notable Point · 51:10-52:43
A Navy management reform lasted only months
The Navy briefly replaced Brewster's leadership, but James Work and the Miranda brothers regained influence before shareholders sued over the restored arrangements.