THEATRICAL BANKRUPTCY.

Hawera Star, Volume XLVIII, 4 October 1924, Page 15

THEATRICAL BANKRUPTCY.

H. G. AIUSGROVE’S AFFAIRS. The financial affairs of Harry George Alusgrove, the well-known theatrical manager and* enterpreneur, were investigated in . the-. Sydney Bankruptcy Court recently’. Mr Musgrove’s estate v’as sequestrated in June on t-lie petition of Wirth Bros (Ltd.), circus proprietors. The bankrupt’s liabilities are stated at. £4130 and his assets at £2474 10s. -' Mr Musgrove stated under' examination that lie had never been bankrupt before, nor had he assigned his estate. Hq originally started as an accountant with his uncle,, George Musgrove, theatrical manager, now retired, and "lien he left there he went as clerk in a newspaper office:. From there, he went to West’s Pictures, and lie had been in the picture shop* and theatrical business ever since. The cause of his bankruptcy was that he guaranteed a brnk overdraft for First National Exhibitors of Australia, and the First National Exhibitors of New South Wales,-for ait amount of £9074. These companies leased films from "America and rented them to exhibitors in Australia. . Finally’,'said Air Musgrove, the'.companies went- into liqiiida'tipn, their failure being due tV overcharging of the American companies.""' To secure the overdraft he had to .mortgage 50,000 shares in Musgroves Theatres (Ltd.), lessees of the Tivoli Theatres. Qf these shares 30,000 had been unencumbered. His shares were sold when tin bank foreclosed for £17,800 to, lie uudcrstoiocll, J. C. Williamson (Ltd).), which amount lie considered was far below. their value, considering that his , partners sold 120,000 shares for £78,000. His shares were worth £30,000 at least.

Last year, proceeded Air Alusgrovo, lie liad a venture with J. C. Williamson (Ltd.) in the pantomime- “Aladdin,” at the Hippodrome for four weeks. There was a loss of £2500 on the venture, and Wirth'Bros., f'rcm whom flic building had been rented, sued him fur his half share and made him baukrup'. His salary as managing director of Musgrove’s Theatres (Ltd.) \vas £IOOO a' year and £IOOO a year for director’s fees. He was also director of the'First National Exhibitors of Australia and of New South Wajes. and for these lie received fees up to March, 1923, when the- companies went into liquidation. For the past two years,, Air Alusgrove added, his income and drawings •were about £3OOO a y’ear. His unsecured liabilities were £4130, and he could, liave paid them if Musgrove ’s Theatres (Ltd.) had .paid 'dividends-,, which they’liad withheld. Tie reckoned that at the date of bankruptcy’ the dividends due to him -were about £SOOO. The directors had decided to pay’ no dividends till the debenture holders had been paid.