PICTURE PRODUCER'S VENTURE

Evening Star, Issue 23179, 31 January 1939, Page 8

PICTURE PRODUCER'S VENTURE

LOSS ON ' PHAR LAP'S SON ’ IMPORTER'S BANKRUPTCY The affairs of Harry Smith, described as an importer, of 315 Castle street, Dunedin, were inquired into at a meeting of his creditors this, morning. Bankrupt had, he stated, lost a considerable amount of money in the making of a moving picture, ‘ Phar Lap’s Son,’ further losses being incurred in connection with his importing business. In the filed statement the amount owing secured creditor was shown *-t £1,450, and to the unsecured creditors £1,445 Is 6d. The, assets, including property, were set down at £l,/50, the deficiency thus being £1,145 Is 6d. The only secured creditor was the National Bank of New Zealand, the principal unsecured creditors being Fritz Doring (Germany), £500; Mountfords and Sons Ltd. (Sheffield), £570; William Lench Ltd. (Birmingham), £B7; Guys Ltd. (Sheffield), £B7; Gain Forwarding Co. (Dunedin), £36; Paterson and Turnbull (Gore), £26; Stevenson (Mosgiel), £26 15s. Bankrupt, in his statement, said that about 1929 he obtained a position with Messrs A. Spafford and Co. Ltd., of Sheffield, as their employee representative for Australasia and New Guinea. Things were bad, and he then decided to try and train racehorses. At that time he was perfectly solvent and was worth about £2,000 in assets. Spaftords informed him i that he must give up the horses, and' he gave up training. He had several horses, including Queen of Song. He then began on the making of a motion picture, ‘ Phar Lap’s Son,’ and while it was still in the course of preparation he lost his job with Spaffords and continued with the picture, upon which he lost a large sum of money. At the same time he went on with racehorse training. After the picture had been finished he obtained other agencies from .Sheffield. This was in 1935, and his house was mortgaged at the time. Bankrupt obtained agencies from Germany, but the goods were not satisfactory. During the past three years he had not done at all well in the business, and things had gone from bad to worse with him. He had now no assets excepting . the house property, which was heavily mortgaged. Ho had been hoping that ho would be able to establish himself in business, but the restrictions upon importing had put a definite end to any possibility of that. Bankrupt added that he had lost considerable sums of money on the goods he had imported. At the present moment he was out of employment. While in business recently he had, for a period of six months, to pay a chauffeur to drive his car.

Asked if there were any other creditors to be added to the list, bankrupt said that he had put in securities at the bank as added security on the overdraft. The value was about £4OO. Previous to this Mrs Smith had lent bankrupt £3OO towards the purchase of the house at Mosgiel. This amount of £3OO was added to the list of claims.

In answer to the assignee, bankrupt said that when ho took on the making of the picture in 1936 he was financial. He had lost approximately £I,OOO on the picture. The list of creditors represented debts contracted l since 1930. He had books at his office. The furniture at the house belonged to his father-in-law.

Bankrupt, in answer to further questions by the assignee, said he had not kept ledger accounts in connection with the overseas business, but had all the invoices. Explaining in regard to another horse, Bellbird, bankrupt said he did not now own the horse. He could not say what it had cost him to live in recent times. In more prosperous times it would be about £3 or £4 a week. _ . Pressed as to what his domestic expenses had been during recent periods, bankrupt remarked, I could not say; I’m never ‘ mealy-mouthed ’ in that -way.” . The Assignee pointed out that it was not a matter of being “ mealymouthed,” but one of considerable interest to the creditors. Bankrupt: “They’ll all be paid. Bankrupt went on to say that he was not in receipt of any allowance or assistance of any kind from England. He considered that lie had underestimated the value of the house at Mosgiel. To the assignee bankrupt said his

expenditure on drink would not exceed 5s per week, and he did not bet. To a creditor, bankrupt said that his biggest loss had been incurred in putting the agencies on the market. la travelling New Zealand for this pnrpose it had cost him and his chauffeur £2O a week. This included his home expenses. Asked _ whether such an_ expenditure was justified, bankrupt said he considered it was. His books were' sufficiently complete for the assignee to ascertain the whole position. He wa*s willing, as soon as he was able, to make some arrangement for payments to creditors. There had been no waste or extravagance. The matter was left in the hands of the Official Assignee (Mr J. M. Adam) pending the disposal of the stock.