DEBTS OF ACTRESS

Evening Post, Volume CXXI, Issue 1, 2 January 1936, Page 4

DEBTS OF ACTRESS

GERTRUDE LAWRENCE CASE

With the consent of Miss Gertrude Lawrence, the actress, her discharge from bankruptcy was granted in London Bankruptcy Court recently, subject to judgment for £3000, says the "Daily Telegraph." Mr. Register Mellor said the trustee would not apply for leave to issue execution so long as £50 a week was paid during her present engagement and afterwards 25 per cent, of her earnings. • Miss Lawrence, whose full name is Gertrude Alice (Dagmar Howley, was described in the order of adjudication, made February^ 12 last, as of Cumberland Place, Regent's Park. • The Official \ Receiver (Mr. S. W. Hood) said Mils Lawrence had estimated her ranking liabilities at, £24,728. But according to the report of the trustee in bankruptcy the total of the proofs jof debt admitted and probable clainis was only £20,730, Miss Lawrence; having over-estimated by £"6450 the amount due for income tax and surtax; The trustee had realised £2067 and expected another £10. There were further possiblel receipts, mainly dependent on aniounts to be received from the future earnings of Miss Lawrence, who already paid £481 from that source.- Costs and preferential claims fq'r £2301 would absorb the whole of tbte present realisation.. In evidence j Miss Lawrence had stated that in September, 1932, when she was in fin|incial difficulties, she formed Gertrude Lawrence, Ltd., to which she agreed to pay the whole of her earnings to "discharge her past and future debts. \ . ■ * AVERAGE INCOME. With others in February, 1933, she formed a florists' company, and of this she was a director, without remuneration, until the ..receiving order was made. In her deficiency account Miss Lawrence estimated income tax and surtax at £14,662 and loss on sale of her jewellery at £13,000. She con-1 sidered she hadij a surplus in assets of £16,657 in February, 1932, and estimated her subsequent earnings at £19,088, from which she deducted £8645 for professional expenses, publicity, and gifts.to professional people. She had also received £6900 as gifts end £1288 from her share of the profits on the play v"Private Lives." Miss Lawrence's income from all sources between February, 1932, and the date of her failure was £20,080, an average of £6693 a year. Her household and personal expenses were £26,744, and the expenditure On-de-pendent relatives £3389, or an average total expenditure of £10,044 a year. The -surplus of FebruaryYl»32, included jewellery valued at' £16,250. In the following May ' the jewellery was pawned for £2000. In September, 1932, the pawn-tickets were given as. security for a loan of £1000, and in February, 1934/ all: the jewellery, was. sold by the ,pawnbrokers -to cover their debt...."'.V. Y:'Y 'V.'l."'. :.- . V , Sir Patrick Hastings, K.C., for. Miss, Lawrence, said the fact of her being represented that day would entail no professional expense to herself or her estate. One very large' liability arose from a legal decision regarding taxation on American earnings of another actress. It was more or less an unexpected liability. Now she had nothing except her earning power. She was fulfilling an engagement which had just begun. '.Miss Lawrence offered to submit to judgment for £3000 as a condition of repeiving a discharge. • . .» ■ £80 A WEEK. She would set aSide £50 a week from her earnings, and > should the engagement end she undertook to set aside 25 per cent, of anything she earned in any circumstances: to meet the judgment. If the present engagement lasted she- would have paid £2500 in one year. ;.' ■ . Mr. Stable, K.C., lor the Trustee, in Bankruptcy, said Miss Lawrence, had hitherto most punctiliously: carried out her engagement to set aside part of her .earnings.'"' ~ ~: t Mr Registrar Mellor* said Miss Lawrence admitted: in;her public examina-; tion that her position was due. to what she "herself .called.; "gross extravagance." But extravagance was to some extent a.question of ; degree, and one did not expect, people in the dramatic profession to be as careful in their expenditure as those in other classes of life.. V..■