BANKRUPT AT 22

Sun (Auckland), Volume III, Issue 624, 28 March 1929, Page 13

BANKRUPT AT 22

“IRRESPONSIBLE,” SAY CREDITORS MUST MAKE PAYMENT Judged by his creditors and by the official assignee, Mr. G. N. Morris, to be irresponsible, a bankrupt grocer, Eric Frank Cate, aged 22, is wanted by his creditors to pay 10s in the £1 before he applies for his discharge. Strong dissatisfaction at Cate’s conduct of a grocery-business at Otahuhu was expressed by his creditors this morning. Air. Morris, too, was at a loss to understand how £1,200 became owing by Cate in 15 months. Cate could give no explanation as to how the money had gone. Cate’s total debts were £1,638 19s lOd, and his assets £437 0s Bd. He owed over £341 to his father, and admitted to the assignee that no payments had been made to lessen that amount. Cate attributed his failure to lack of experience and price-cutting. After business at Mangere Crossing, he began at Otahuhu in December, 1927. After searching questions had been put to Cate by his creditors, Air. Morris stated plainly that there would probably be little to be gained were the case to go before a court. This was on account of Cate’s youth. Cate said he was married and had one child. Bankrupt, under examination, said that he drew £5 a week from his business on an average and occasionally an odd pound or two. He did not take out a balance sheet and had only a “rough idea” of how to go about drawing up a balance sheet. “I cannot account for the oss and do not know where my money has gone,” Cate admitted. Air. Alorris: It is not satisfactory to tell your creditors that. Between December last and January you got over £IOO credit from one firm. Did you tell the firm your position? Bankrupt: I had no accurate knowledge of my position. Cate then admitted that one firm had stopped his credit. “This boy has been too young. He was barely 21 when he began business,’’ Mr. Morris said to the creditors. “There is no doubt that bankrupt has been irresponsible.”