George Lindemann Journal by George Lindemann "Corcoran’s Merger Plan Draws Fire in Court Hearing" @nytimes RANDY KENNEDY

George Lindemann Journal by George Lindemann "Corcoran’s Merger Plan Draws Fire in Court Hearing" @nytimes RANDY KENNEDY

The Corcoran Gallery of Art, above, is the topic of a contentious court battle in Washington. Credit Kevin Wolf/Associated Press        

WASHINGTON — Two widely divergent views of the financial troubles of the Corcoran Gallery of Art — which is seeking legal permission to alter its trust and dissolve itself through a merger with the National Gallery of Art — emerged in sometimes contentious testimony in the District of Columbia Superior Court on Wednesday.

The Corcoran, one of the nation’s oldest privately supported museums, has struggled for years to raise money. But the opponents of the merger plan — who include students at its art college and employees who say they could be harmed by the dissolution — during the hearing depicted a board of trustees that in recent years has done little to try to turn around the institution’s fortunes and has squandered money on consultants while not following their advice.

Andrew S. Tulumello, the opposition’s lawyer, cited a 2008 consultant’s study that found, as he described it, “that something was broken with fund-raising at the board level.” In the years after the study, the board never filled all 18 seats that its structure allowed. As Mr. Tulumello depicted the situation during his questioning of the museum’s leadership, the trustees seemed to function more as caretakers for an institution that was already assumed not to have a future.

Harry F. Hopper III, the museum’s chairman, who testified for a second day in support of the plan to dissolve the Corcoran as a stand-alone museum, said that a broken fund-raising mechanism was a symptom, not a cause, of troubles at the gallery. Years of poor finances, which had led to serious structural problems with the museum’s building, a landmark near the White House, became a spiral, scaring off significant donors. The recession, he added, made the climate for giving even more difficult.

“I personally had conversations with a lot of high net-worth individuals that were not presented to the board because they were not willing to step in because of the financial stress of the institution,” said Mr. Hopper, a venture capitalist. Of the gallery’s decision to spend hundreds of thousands of dollars on management consultants, he added, “The only way that we could get our hands on the situation — where we had a bank put us in default and freeze accounts — was to have a SWAT team come in from an outside firm.”

Earlier financial problems were only a “fire drill” for what the gallery encountered over the last several years, he said.

Mr. Hopper defended the board’s work to stabilize the museum. “When it looked like the institution was just having trouble finding the runway to exist, I think we did a pretty good job,” he said.

The plan for the National Gallery to absorb the Corcoran and for George Washington University to take over the Corcoran’s art college has been presented by officials of the three institutions as the only way to keep the heart of the Corcoran’s collection intact and to salvage its legacy.

Thus, the Corcoran is seeking court permission to alter the 1869 deed of its founder, the banker William Corcoran, who gave his collection and money for the “perpetual establishment” of a “public gallery and museum.” Opponents contend that the Corcoran would exist as little more than a name under the merger and that its historic building would no longer function as a museum.

Under the deal, announced in May, the Corcoran would cede its collection of more than 17,000 pieces, rich in American art, to the National Gallery, which would preserve a “Legacy Gallery” within the Corcoran’s building on 17th Street, and organize its own exhibitions of modern and contemporary art there.

Works that the National Gallery could not accommodate would be dispersed to other institutions, with a preference for keeping them in Washington. The Corcoran’s building would become the property of the university, which would use it for classes for students of the Corcoran College of Art + Design.

Judge Robert D. Okun will continue to hear testimony in the case Thursday and next week.

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