, 1870-11-22
TUESDAY. NOVEMBER % 1s7o

otieato, m
TUESDAY, NOVEMBER %. 1870.
THE WAREHOUSE FRAUDS.
one Of the most important questions IN
queathed by the Constitutional Conyer
lion to the Legislature for settlement :
details, is that concerning Chicago eley,
tors By what specific remedies can di.
honesty in the management Of these cot
Germs ''e detected aud prevented, or pun
Nhed IN manner economical to th
saiprer SD to the community? The Who'll
dnhculty IN dealing with the subjec
grows out Of the assumption, whether it b,
true or not, that, frmn the great volume o.
The grain business transacted in Chicago
it is absolutely necessary to give railroads
and warehouses the right to mix the grain
of various owners. This right WAS
sanctioned aud fortified Ly the act of 1867,
and the 1,,ost Ec~olute aud persistent at.
tcH1p!s were ma.lc 10 resanction it in the
rew constitution. Prior to the net OF 1861, j,
had never heen sanctioned IN this country
l's any statute and only by few stsag.
Cling and exceptional Judicial decisions in
Ohio. Indiana, Wisconsin, and Illinois,
The common law has 1,een- and III. uho,o
sennr Of iulicial decisions IN N. Fsets,r
States still is, that the warehousemau or
hailct, who mingles the grain, or wool, OF
in a comn,on rr,xs ceases - ,,o 1,.;,ea S
and becomes n purchaser. he ia 7eanna5 -
have converted the goods 50 minp1ed il
his o~n use, and to he Responsible Tor The
price to the rrevions owner. oo7 rail.
rusd, and warehouses set ont With tha
theou that ther .re nD5ar M .on,o1
Inv ob]irstion as carriers to -e,s;~. ~
store Grain in bulk at all lint on,v in
sacks: that. if the shinneu ara r;l1-
ing to send it in sacks fhev
a.e still ready to comn,v vim
their common law OBLIGATION tn kaan
sen,ra,a tba ,,ra7n ,f ,,.r;,re .,vrn.r.. III
u m. eh;,,ns7. ~, .r,a,, - =, - s
c,.ir in in1t ,bar +ha,.tr -. 49,. -,
plied consent that thc uarehon sen,an sha1,
have powez to mix the grain Of rar;ons
ovusrs. that power being indisnens,b1a A.
they allece, to that mode Of doing bns;.
ness
The first and most rai1;col onezt;on. IN
consider is. whether this assnrnnt;nn IA
sound We perceive that out of this RIGHT
10 mix, grows the whole possibility of
fraud. II is an assumption propacated
sedulously by the railroads and elevators
themselves, and is to be serutinizad +be
,uo.e carefully. as it is ona which ID oye1r-
Avely for their benefit. Is it true
then that the grain storage business in CHI
cage requires this right to mix the grain Of
different o~ners7 1t does not require it at
Buffalo, Or Rochester, or New York. It no
where requires II in England, vet very ex.
tensive graiu uarts exist both at New York
And Iiyernoo7 Va nf t1,asa Woe+a-,
ssates. and especially here at Chicaeo. hava
invented q new law of bsilment, in xhich
the bailee is conceded to have a nouar The
exercise Of which in New York or ENGLAND
would he either conversion or q crime
The warehousemen, who aloneare interest.
ed in claiming this right. assert Tint AT tb,s
special locality business cannnt 1,e doro
without it. Is this assumntion trne9
Our grain arrives in bulk. in cars of sso
to en-, bushels each. ana each chr renresents
The grain of one firm or owner. lin vera
n,articsh1a N ,,ro,.;3o hing .~1,;,h ..,,1a
bold pu]v a car.Ioad II world ra,+.in1r ho
nratticai,1*. In kten t1,a or.;, of s.c1, nruna~
.,;s,;nrt nnt ~ ,,,.4 ,ae.. ~ ,sa.a1.
0s e AA3oAo't