The Western Gazette 25 Sep 1925 Fivehead Farmers £7000 deficiency Silvester Henry PIMM

The Western Gazette Friday 25 Sep 1925 Page 11


FIVEHEAD FARMERS AFFAIRS


£7,000 DEFICIENCY.


HEAVY LOSSES ON STOCK.


BOUGHT TO DRAPER BROTHER'S ORDERS.


FORGOTTEN £2,000.

Silvester Henry PIMM, of Swell Court, Fivehead, farmer, underwent his public examination in bankruptcy at Yeovil Bankruptcy Court on Thursday, before the Registrar (Mr. H. MOORE WATTS). Gross liabilities were stated to be £8,227 4s 10d, of which £7,942 14s 2d, due to unsecured creditors, was expected to rank for dividend. There was a deficiency of £7,105 12s 4d. Defendant, in his statement of the causes of failure, said “I have always been handicapped by lack of capital, and in addition have suffered heavy losses through bad seasons.”


FINANCED BY OVERDRAFT.

The Official Receiver's remarks said the debtor was 59 years of age, and stated that he took over the farm attached to Swell Court about eight years ago. Apparently he had no free capital at the time, and he was financed by a bank overdraft, guaranteed by a relative, in respect of which there was now due over £7,000. Proceedings were taken for recovery, and it was in consequence of these that the petition was filed. Just prior to receiving the order, a distress warrant was levied for the half-year's rent due at Lady-day last, amounting to £235 and costs, and the usual undertaking has been given in regard to this, so as to avoid a sale taking place. The assets, apart from the farm stock and effects, consisted almost entirely of growing crops, and it appeared desirable in the interests of everybody concerned that the farm should be continued, in order that these may be harvested. Temporary steps with this end in view had already been taken, pending some definite resolution by the creditors as to future action. No books of account whatever had been kept by the debtor, nor apparently had he taken steps from time to time to ascertain his financial position. He stated he only became aware of his insolvency about three months ago, but having regard to the figures now disclosed it was difficult to understand this. The furniture at Swell Court, with some few exceptions, was claimed by defendant's wife on the ground that it was purchased out of her own separate money, or, alternatively, represented presents to her. This was a matter which would require close investigation.


FORGOTTEN £2,000.

Questioned by the Official Receiver (Mr. Tilney BARTON), debtor said he was brought up as a farmer, and first farmed at Highbridge. Before going to Swell Court he farmed at Langton Herring, near Weymouth, and came out short of money. On the suggestion of his brother, he went into a larger farm at Swell Court, which was about 500 acres in extent, with £520 rent. His brother told him to take it if he liked it, and stood guarantor at the band for an unlimited amount. He admitted that the first cheque drawn on his opening an account with the Midland Bank was for £1,675, to pay off an overdraft at Lloyds Bank. At the end of his first year's trading at Fivehead there was an overdraft on the Midland Bank of £1,700.

The Official Receiver: In October, 1916, you paid in £2,000. What was that for? Did your brother give you a cheque for £2,000? - Not that I am aware of.

It is not the sort of thing you would forget. Cannot you explain it? - No, I cannot.

When one asks a question and you answer as you do, one can understand while you failed in business. - I have forgotten a lot through worry.


DRAPER WHO DIRECTED FARMER.

By Midsummer, 1917, you were overdrawn £2,349, and had only paid in £450. Can you explain that? - Probably it went in the purchase of cattle.

That is what I thought. By Christmas, 1917, you were overdrawn £2,735; 1918, £3,844; 1919, £4,400; 1920, £5,830; 1921, £7,135; June, 1922, £7,462; and June, 1923, £6,914. Do you remember why the account was then closed? - No, I don't – Under further questions, debtor admitted that his brother died about that time.

It is a most instructive fact that from February, 1923, when you had to rely on your own resources, you were never overdrawn? - Because they would not allow it.

Although you were not only living but paying the bank interest, how do you explain it? - By reducing stock to meet my liabilities.

It looks to me as though all the time you had your brother at your back practically as your banker, you over-bought and had heavy losses on stock? - It was my brother's mistaken kindness. He always came down when the weather was fine and said: “You must have more stock.”

And against your better judgement as a farmer you allowed your brother as a draper to dictate to you? - The money was his. I had to buy cattle and sell at a sacrifice to his orders.


WIFE AS BREAD-GETTER.

Asked how he came to open a banking account at Langport with a cheque from his wife, debtor said he drew the cheque from an account with the Midland Bank, Dorchester, paid it to her, and she transferred it back to him. He could not get on with the Midland Bank after his brother's death. They returned cheques when his account was only £3 short, and he closed the account. His wife made money by taking paying guests and keeping poultry, and had paid many debts for him. He had never given her anything for food. She had bought the furniture, all he possessed previously having been sold after his first wife's death. There had been heavy losses on teazles, which was a catchy crop, and he had lost stock from various unavoidable complaints.

Cross-examined by Mr. J. P. EMETT, of Bristol, for the trustees, debtor could not recollect giving in 1910 a mortgage for £700 to his brother. He might have received that sum.

Mr. EMETT: Did your brother pay off an overdraft of £500 on the Wilts and Dorset Bank? - Debtor: He must have done if it was done. - His son had made him a loan of £500. In 1923 a Mr. KNAPMAN, of Salisbury, made an inventory and valuation of his effects on the farm, but he did not know by whose instructions – he presumed his brother's executors'. The valuation was £6,156, but it included cattle, pigs, and sheep which did not belong to him.

Mr. EMMETT: Why did you not tell the valuer they did not belong to you? - Debtor: I was not asked any questions. He agreed this stock was worth about £700. His implements were valued at £1, 350. He did not admit that the figures were taken from his own estimates for Inland Revenue purposes. They were now worth about £400.

Mr. EMMETT: Since August, 1923, your assets have depreciated or been made away to the extent of £5,000? - Debtor: To meet my liabilities. Mr. KNAPMAN's figure was absurb. I asked for a local man to make the valuation. He had no intention to mislead the Bank or the executors. He was annoyed, and gave the valuer no information.

Mr. F. W. WILLMOTT (Taunton), on behalf of the debtor, asked for the examination to be closed, and to this the Registrar consented.

 

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