, 1873-11-09
The WAREHOUSE. QUESTION,

The WAREHOUSE QUESTION.
Tho x1ongt, (" Irregularities ,,--l.cttcr
from Stephen 6lnry, Esq.
10 hs Editor of Tbs Chicago Iffbunet
Brns think 1t fortunate, at least for hovs4
paperAmon, TINT tho testimony taken in tbh
11ongh cnso Is to ID printed, for batioyo 1t wlil
Hettls aoyornl q,loations On Which, judging from
your editorial this morning, n largc part OF tho
community arc at sea. Tho Testimony docs mol
discloss tho fact TINT all tho e!oyator.non in
Chicago hayo boon ongagod in Issuing or rcig.
onlug fraudulent roocipte. On tho contrary,
that no such thing hAd beon done Ut all, but thht
tho only otfenso WAS shipping out grain In houo
| cases without Promptly cancoiing Warehouse
fecofpte. Tho Testimony diHoloHos that all Of
thom occasionally dono this, and that in this
only 'ras the difficulty; and TINT. aB = general
thing, cancellations were promptly made.
Boo. Of tho Warehouse Inv requiroa all pub-
from tho Circuit Court, by giving bontls for s1o,-
duty, under penalty Of not less than 800 nor
moro than $500 for each day such business Is 80
carried on; aud. tho Court may revoke the
uconso. Doubtless the Legislature supposed no
ono would attempt to do bupinons Without 4
license, and henco failed to aillx poualty to any
OF the othor requirements Of tho Ian, except tho
issuing Of fraudulent receipts aud tho shipring
out Of grain without cancolng receipts. Ware
houHemon we're advised that they could rosist
the several other requirements Of tho law. aB It
wan inoperativo for want OF penalty.
SEQ. IL Of the law hxes tho maximum rate Of
storage at oents per buahoi for tho frat 80
days, Or parts thereof; and for overy l5 days, or
parts thoreof, after the first 80 days, At u cont
per b1lshe1. This section has boon completely
ignored, aud tho charge hAH boon oanta Tor I'd
days, and II cont for 10; days thereafter. Tho
old Board OF Commissioners ordered suit to bo
brought for violations Of this sootion, which was
oomtnencod bofore the fire, aud, when reached
IN the Circuit Court, waH thrown out AZ inopera-
tive for want Of penalty.
Information WIS hlod In the Circuit Court, in
September, 1871. agatnht Mum l. Bcott, for ro-
fusal to take out lcenso; and, when roachod in
1b72, m agreed case WAS made, with = view Of
taking 1t to the Supreme Court and tho Court
belo" flnod Mum Scott @1o0 This caso las
boon pending in tho Supreme Court since that
titno. It Was rumored, early last bpriug. that
doolsion had beeen maoO, and would ba published
IN June but, aftor the accession of the nav
Judges, tho Court ordered the case to be rear
guod. and decision Ia now expected by January
at fartheat.
Indictments wsro found, In 1871 and 1879,
against Hugh Mahor aud Munn d Scott Tor
shipping out grain without csncoling receipts
bat nothtng further has boon done-t officers
supreme Court. It Is hoped tho decision will
20 favorable to tho law. l suppose mono Of those
dagrant violations" Of tue law have been con-
donod by the delay, and that numerous proaecr-
ttonH may result
soo rs, which you quote, makes It a penL Of
fonHe for any Warohouseman to issue q
receipt Tor any property not actually In Btoro at
the time. Now, what ID moant by Il In store u?
Ibis section relates a. well to warehouHomen OF
Class Q, who take salt and pork, aud such kind
Qf DfQCGrtF. RtnrAvA Rttn1nua ~ ,;o
olasa wero to have his warehouse full, and should
employ canhl-boat alongside to carry on his
business Ia !; would putting the pork on
oloyators get full, and tho ''Central" and
and " Northwestern built cribs near by; which
were regarded as regular BY tho trade. It is
NaA Known to tho tradn that tho receipts they
grain that wont IN ntore, but only corresponds
Ing amount of tho eamo kind and grade that.
whllo train OF cars may bo unloading on ono
-s.de Of an elevator, the aame grain is being
spouted to vcaaol on tho other side. And more
particularly Is this tho case with caual-
grain: canal.boat sent to unload viii meet 4
vessel wanting the same grade Of grain sho llas
on board, and her cargo will be epoutod to tho
canal.cargo for this grain and tho elevator man
cancels corresponding amount of tho receipts
left by the yeasel-owuar. This ia q technical
violation Of tue lazy, which requires that tie old
I1s Hllt1l DG II1D uTH[ $QlDDGu. l$It
the demands OF trade, It ia oontondod, arc above
the law, and phrticalarly 30 when thore is 10
penalty to enforce it.
It may be safely asserted that tho chief, il mt
nosa IL Chicago is in tho strong intiucomont to
ship out tho grain in atoro without the cancella-
tion Ut receipts. Fraudulent recoipts, in NV
Judgment arc myth since the registration
syatem was adopted, and tho roisBuing OF old 70
ceoipts taken up is impossible without dosoctiou.
mo H1lcA discoveries have hnnu rnnf1e
Early IN September last, tho elevators hand
ling canal.Grain woro noarly full, aud tho room
Iney nae my were dcslrous ot koeping for rail-
boats unloadod. Hough / Do. made atrnngononts NJ Its
to unload soma twenty boats, mud, desiring to
keep the room they lad in the elevator for tho
railroads, they concluded to purchase aud ship
most Of these boat-loadB. It will not bo con-
provided they cancelod receipts for any Of the
boat-loads on which receipts had boon lssued-
not tile identical receipts, but for correspond
lng amount; They stated to me that, on some
o. as tho owners had to "delivor" the corn.
Ih9y would require to bo registered. /
told them I SAN no objection to regis-
tof1ng tho receipts, provided they promptly
Cancelled sn equivalent amount. On tho 9th Of
september, taoy commenced loading the
soloonor Annio Vonght; and, whom 3,654 bushels
mad been loaded, tho machinery in tho elevator
broke down. The whole proceeding must thon
1oAe ~ stop, uniesa they could employ tho
4oating- elevator to carry ont their ongaEenlontB
! thought In such IN emergency 1t would bo DO
3ng no injustice to any one, and no flagrant vio-
lation Of law, to regard the Aoater for this pur.
pose aa part and parcel Of tho Hough elevator;
aud that, the cancellations wore duly made, 1t
would be safe to register Bomo Of those
leads: There we're elgnt boat-loa.ls 30 tranB-
forred to tho Annie .Vought, OF which six boat
iosds @a were registered; and tho books Of Hough
q 70. SHOW that t{oy Ind purchased the receipts
IL $1.nA IL
ne1t, and that, within tho succeeding three days,
They had purchased for thosc shipnents 90, i0s
bushnls Of corn. Three mora yeesels rero loaded |
during The 11th, 12th, and 18Th Of September:
tslo cannl.boats woro duly unloadcd; consigncos
naa ooea greatly accommodated,-ha got the |
money for their corn, and the boats dis |
patched for more. In loading the laat three
ons referred referred TO- thirtoen boat
ooat-loads, and oil slese receinta hit ono
1ave Deeu duly returned to tho Houghs, and can
aad aa tbo fos sots s cne books
store ample to meet 1t. And hora comoa in t],c