Deanna Durbin really did save Universal from bankruptcy and enabled it to remain a big studio. By the mid 30s most of the big directors that had been at Universal eg Milestone, Browning and Wyler had gone. Only James Whale remained but his prestigious horror films were behind him. Deanna and Judy Garland appeared in a short "Every Sunday" and initially Garland was suggested for the role of Penny in "Three Smart Girls". When Garland was unavailable Universal switched to Durbin. Initially she had been definitely a supporting player but her potential was so vivid that the script was rewritten to make her the star. Directed by Henry Koster the film had a European touch.<br /><br />The film starts with a beautiful panorama of a lake in "Switzerland". The "three smart girls" of the title - three sisters, Joan (Nan Grey), Kay (Barbara Read) and Penny (Deanna Durbin) are sailing with Penny giving her glorious voice to "My Heart is Singing". All is not too well on the home front - their father is planning to remarry a younger woman (Binnie Barnes) so the three girls with the help of their trusty nurse (Lucille Watson) decide to go to New York and reunite him with their mother. Lucille Watson is best remembered for her role as Robert Taylor's stern mother in "Waterloo Bridge" (1941).<br /><br />Donna is a gold-digger who, along with her scatty mother (Alice Brady), is determined to marry Judson Craig (Charles Winninger). For someone with no film experience Deanna is wonderful as Penny, a typical pesky, over enthusiastic kid sister and she is as pretty as a picture. When she sings "Someone to Care for Me" to her father you will just melt - what a glorious voice she had. She also has one of the funniest lines in the film. When her father consoles her with "I'll take you to the zoo tomorrow", she replies "Oh I can see enough monkeys around here"!!!<br /><br />With the help of Bill Evans (John King) they decide to hire a "count" (Mischa Auer)to romance Donna. They arrange to meet at a nightclub but due to a mix-up Lord Michael Stuart (Ray Milland) is mistaken for the count and Donna falls for him (she thinks he owns half of Australia!!!) The plan backfires as he falls for Kay and Donna wants to hasten her marriage to Judson.<br /><br />Penny decides to take matters into her own hands and runs away. She is taken to the local police station where she charms the cops with her rendition of "Il Bacio" (she is trying to convince them she is a young opera singer.) Everything ends happily with their mother (Nella Walker) sailing over to patch things up with their dad and in the meantime Donna makes the acquaintance of the phoney count (Mischa Auer) and sails off to Australia with him.<br /><br />Highly recommended.