Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-03-30
COMMERCIAL FACILITIES.
Text Of the New Law Making Ware
house Receipts Negotiable.
A System that Originated with the
Nashville Cotton Exchange.


house receipts negotiable, was, with the
omission Of one section, that uTsed by a
committee Of the Nashville Cotton Ex-
change, appointed for the purpose, consist
ing Of J. +. Wheless, 7. B. Sample, l. X.
Chase, w. NJ. Duncan and B. Lanier. The
section omitted from the original draft, Of
which the chrirInan Of the committee was
the author, is as follows:
"Be it further enacted, that the vendor Of
any species Of produce or merchandise, for
cash, shall have a lien upon the same for
the period Of three days afler delivery there
of. So much Of the act passed Feb. 10,
1868, entitled an act for the protection Of
merchants, factors and cotton brokers, is
hereby repealed"
The same bill was presented to the 3Sth
General Assembly, but failed, we believe,
for want Of time. Now that it has become
a law it is Of such importance to our whole
commercial community, that we make
room for its full textile following being
a correct copy Of the law, as approved by
the Governor:
An Act to define the rights and duties and reg
ulate the liabilities Of warehOusenen and fac
tors.
Section l. BE it enacted by the General
Assembly Of the State Of Tennessee, that
hereafter in this State all or every person
or persons, firms, companies or corpora
tiOns, who shall secure cotton, tobacco,
corn, wheat, rye, oats, hemp, whisky, or
any kind Of produce, wares, merchandise,
or any description Of personal property,
whatever, in store OF undertake to receive
and take care Of the same, shall be deemed
a warehouseman.
Sec. 2. Be it further enacted, that no
warehOusemah or other person shall issue
any receipt or other voucher for cotton, to-
baeeO, grain, merchandise, or property Of
any kind to any person, persons, or cOrpO-
ration, for money loaned or other purpose,
unless such cotton, tobacco, grain, mer-
chandisa, or property aforesaid, shall, at
the time Of issuing such receipt, be in Gus
tOdy Of such warehOuseman or other per.
son, and shall be in store OF upon the
premises and under his control at the time
Of issuing such receipt or voucher.
Sec. 3. Be it further enacted, that no
warehOuseman or other person shall issue
any second or duplicate receipt while any
former receipt for the same or any part
thereof shall remain outstanding or un-
Cancelled, without writing cross face Of
same duplicate"
Sec. Be it further enacted, that no
wsrehOuseman or other person shall sell or
encCmber, ship, transfer or in any way re-
move, or permit to be removed, transferred
OF shipped beyond his control, anything
hereinbefOre mentioned for which a receipt
shall have been given BY him, without the
written consent Of the person or persons
holding such receipt.
Sec. 3. Be il further enacted, that no
master Of any boat or agent Of any railroad,
transfer or transportation company or any
other person shall give any bill Of lading or
other voucher for a-y cotton, tobacco,
grain, or property Of any kind, by which it
shall appear that such prOdJce, MERCHANDISE
or property, has been shipped on board Of
any boat, railroad or other company, or We
hicle Of transportation, unless the same
shall have been actually received in depot,
or delivered 10 such boat or other vehicle TO
be carried or transported as expressed in
said bill Of lading or other voucher.
Sec. 8. Be it further enacted, that the
aforementioned receipts Of any warehouse
man or other person or any bill Of lading
given by any boat, railroad, transfer or
transportation company, may be transferred
by endorsement thereon, and any person 20
whom the same may be transferred, shall
be deemed and taken 20 be the owner Of
the produce, merchandise or property there
in specified, so far as to give validity to any
pledge. lein or transfer made, or Created by
any such person or persons; but no property
shall be delivered eNcept on suFrsrleF and
cancellation Of the said original receipt,
bill Of lading or other voucher, or the en-
doTsement Of such delivery thereon in case
Of partial delivery, all such receipts OF bills
Of lading which shall have the words not
Negotiable plainly written or printed there
on, shall not be subject to the provisions Of
this act.
Sec. :. Be it further enacted, that no
warehOuseman or other person shall pledge,
hypOthecate, or negotiate any loan upon
any receipt fO- produce, merchandise OF
other property to a greater amount than he
has actually paid or advanced thereon.
Sec. s. BE it further enacted, that any
WarehOuseman or Otner person who shall
violate any Of the provisions Of this act
shall be deemed guilty of a criminal Of
fense, and UpOR indictmenJand conviction
thereof shall be fined in any sum not ex-
eeeding five thousand dollars, or imprison-
ment in the penitentiary Of the State for
not more than five years, or both, and all
or every person or persons aggTieved by the
violation aforesaid shall have the right 20
maintain an action at law against the per-
son or persons, corporation or corporations,
violating any Of the provisions Of this act,
to recover damages which he or they may
have sustained by reason of such violation
as aforesaid, before any court Of competent i
jurisdiction, whether such person or per-
sons Aforesaid shall have been convicted Of |
fraud under this act or not.
Sec. 9. Be it further enacted, that all the |
provisions of this act shall apply and be |
applicable to bills of lading and to all per
sons or corporations; that agents or ser |
wants that may issue bills of lading OF any |
kind Of description the same as though the |
words Forwarded and bills Of lading" |
were mentioned in - section of this act. |
Sec. 10. Re il further enacted, that all |
receipts, bills Of ladiug or other vouchers, |
issued by any warehOuseman, fOrwardeT or /
other person, boat, railroad, or other trans /
fer company, as by this act provided, shall /
be negotiable by endorsement thereon, in /
blank or special endorsement, in the same /
manner and to the same extent that bills !
of exchange or prOmsisOry notes are.
Sec. II. Be it further enacted, that no /
printed or written condition or clause, |
which may in way limit the liability inn
posed by this act, shall be Of any effect or /
force whatever.
Sec. u. Be it further enacted, that who |
soever shall buy any cotton, tobacco, or |
other produce, merchandise or property for |
cash or shall procure an advance upon such |
property, and shall sell, hypOtheCate, or |
pledge the same 70 another, and use the |
proceeds thereof for any other purpose, |
than the payment Of he seller, vendor, or |
party advancing thereon, Or shall ship, con- |
vey, or otherwise make way with or shall
deliver to another any such cotton, tObac- /
CO, or other produce or merchandise, with
out payment to said seller or vendor, or
party having advanced thereon, shall be
guilty of a felony, upon conviction thereof
shall be punished by fine in any sum not
over five thousand dollars or Imprisonment
in the State prison for not exceeding five
years, or by both such fine and imprisOn-
ment.
Sec. Is. Be it further enacted that if any
merchant, broker or WarehOuseman under /
taking to execute orders for the purchase Of
produce or merchandise shall, with the in
tent to cheat and defraud, draw a bill Of
exchange upon his principal or his agent |
for a greater sum than the reasonable cost |
or value of such produce or merchandise, |
with reasonable charges thereon, he shall !
be liable to all the penalties contained IN |
the eighth section Of this act. The public /
welfare requiring il, this act shall take ef- /
feet from and after its passage.