E NEY GENERAL 

.4%-rOlaS~ cac.XBRA& February 21, 1964 

Hon. John C. White 

Commissioner of Agriculture 

Opinion No. C-219 

Capitol Station Re: May a public warehouseman 

Austin, Texas charge the owner of stored 

cotton for services performed for compressing the 

cotton, and related quesDear Mr. White: tions e 

We acknowledge receipt of yo,ur request for opinion on 

the above subject matter construing the Texas Markets and Warehouses Law, codified as Articles 5562 et seq. of Vernon’s Civil 

Statutes. Your letter and the questions propounded to us state 

in part as follows: 

Jr., 

“The attached letter from Mr. George H. Traylor, 

President of the Lubbock Cotton Exchange outlines 

in detail an apparent growing problem in the cotton 

industry. Briefly, it concerns the practice of a cootton warehouse applying hi-density compression to a 

bale of cotton without the owners’ permission for the 

sake of conserving storage space. A compression charge 

is then added to the storage bill. 

“Our specific questions are as follows: 

“1. Does the Markets and Warehouses Law contain 

a provision which would forbid the warehouseman from 

altering the size or changing the original description 

of a stored commodity without the owner’s permission? 

“2. If the answer to the above question is negative, does the law forbid a warehouseman to charge the 

owner of stored property for a service that was performed solely for the convenience of the warehouse?” 

As both questions are inter-related we will answer both 

questions together. 

The statutes pertaining to warehouses and warehousemen 

do not contain any provisions specifically allowing or forbidding 

warehousemen to compress and charge for compression of cotton stored 

with them by the owners. However, considering the statutes as a 

-1054- 
Hon. John C. White, page 2 (C-219) 

whole, to be hereinafter discussed, we feel the charge is an authorized one 0 

Article 5570 states in part as follows: 

“On application of the owner or depositor of 

the property stored in a public warehouse,,the 

warehouseman shall issue over his own signature, or 

that of his duly authorized agent, a public warehouse receipt therefor, to the order of the person 

entitled thereto; which receipt shall purport to be 

issued by a public warehouse, shall bear the date 

of the day of its Issue, and shall state upon its 

face the name of the warehouse and its location, 

the description, quantity, number and marks of the 

property stored. Where such receipt is for cotton 

it shall state the class and weight, and the date 

on which it was originally received in warehouse, 

and that it is deliverable upon return of the receipt properly indorsed by the person to whose 

order it was issued, and on navment of all chars s 

for storape. and insurance. which charnes shall Ee 

stated on the fact of the receiot. e . .‘I (Emphasis added), 

We interpret this provision to mean that when cotton 

has been deposited for storage, the warehouseman must issue a receipt therefor which should completely itemize all char es in 

connection with the storage. The issuance of this rece f pt by the 

warehouseman and the acceptance thereof by the owner governs the 

charges which the warehouseman may collect and for which he may 

claim a lien. All charges, including any charges for compression, 

must appear on the face of the warehouse receipt. At this time 

the depositor is aware that the warehouseman proposes to charge a 

fee for compression, and therefore he is on notice of such charge. 

If the depositor chooses to take his commodity to a warehouse not 

charging the compressing fee, he is at liberty to do so. 

We do not base our decision on Article 55’70 entirely. 

Under the terms of Article 5574 a warehouseman returns goods left 

with him only after presentation and return of the warehouse receipt “and the tender of all D oner warehouse charees unon the 

pronerty represented by it Lthi receipL/.14 (Emphasis added). 

Our Uniform Warehouse Receipts Act provides in Article 

5613 that the warehouse receipt shall state the rate of storage 

charges, and the liabilities incurred for which the warehouseman 

claims a lien. Article 5638 of this Act states in part as follows t 

-1055- 
Hon. John C. White, page 3 (C-219) 

"Subject to the provisions of the second succeeding article, a warehouseman shall have a lien on goods 

deposited or on the proceeds thereof in his hands, for 

all lawful charnes for storane and preservation of the 

goods; &so for all lawful claims for money advanced, 

interest, insurance, transportation, labor, weighing, 

on ina and other charaes and exoenses in relation 

go" szzh goods; . . .I) (Emphasis added). 

In light of the statements made above we must answer 

your first question in the negative. We find implied authority 

in the statutes discussed for the warehousemen to charge for compression as it is a charge necessitated by the large amount of 

cotton to be stored by them, and further because the charge is 

one specified on the warehouse receipt. Your second question is 

also answered in the negative. 

SUMMARY 

The issuance of a receipt by the warehouseman 

and the acceptance thereof by the owner governs the 

charges which the warehouseman may collect and for 

which he may claim a lien. All charges, including any 

charges for compression, must appear on the face of 

the warehouse receipt. 

Yours very truly, 

WAGGONER CARR 

Attorney General * 

FDW:wb 

By&<r% 

Assist&t 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

Paul Phy 

Jerrv Brock 

Paul Robertson 

W. 0. Shultz 

APPROVED FOR THE ATTORNEY GENERAL 

By: Howard N. Mays 

-1056~