Savannah morning news. [volume] (Savannah) 1868-1887, 1886-08-13
QUESTIONS OF FINANCE.
PAPERS READ TO
THE BANK ERS.

II. H.
81 ofLading as Documents of Title-Dsn
81 ~ar of False Bills and of Bills Issued
p.fore the Receipt of the Property
They Gall For.
RosToN. Aug. 12.-At the Bankers
convention to-day the following officers
we're elected: Logan c. Murray, Of New
York. President; Lowell FL. Camp, of Mil
waukee, Vice President.
udge John Lowell, of Massachusetts,
read paper on bankruptcy Legisla-
tono and communication was read
from United States Treasurer Jordan
abowing the present coinage and value of
silver.
George Hague, General Manager OF the
g Merchants' Bank of Montreal, read a pa
per on "The System of Branch Banking
81 in Canada"
The Executive Council submitted re-
port, which was unanimously adopted,
appealing to all boards of trade, cham
HI bers of commerce and civil and political
associations to make persistent efforts tor
the repeal of the law authorizing the
MI coinage OF silver dollafs or suspension
81 of coinage.
# A resolution was adopted tavoring leg
7 islatlon to remedy defective treaties
which prevent the return of tugltives
from justice.
BILLS OF LADING.
The following is brief extract from
the address of NJ. e. X. Olmstead, of New
"a York, upon bills of iading as documents
8 Of title In the rapid growth of modern
81 commerce we are often reminded that
III bills of ladiug constitute the basis OF
atf5.
# taut banking transactions These instru-
81 ments have many commercial and legal
I'll p9lDts OF interest, not within the range Of
81 my present purpose. which 10 to consider
81 certain indrmties, or possible ln1rmitles,
ri to which they appear t. be liable, when
M regarded as muniments of title for bank
II ing purposes. 1t will not, indeed, be ad-
81 visaDle tn pass over altogether the long
Ia contest between shippers and carriers in
"a yoving the interpretation of these instru-
"A ments, since developments consequent
"a upon this controversy affect the question
4 now under discussion, but shall touch
q upon tlat part or the subject lightly.
n The negotiable value of bills of lading,
Fl or their value as documents of title, de-
Il pends largely upon three conditions,
# namely:
/. Safety in relying upon the belief that
81 the property has been actually received
by the carrier as represented in the bill.
2. Certainty that when properly in
dorsed and delivered they will convey an
# indefeasiole title to the property.
3. The preservation of the carriers lla-
bility for all risks of transportation not
Il capable OF insurance.
DANGER OF FALSE BILLS.
The first of these conditions of safety is
violated by the issue of false bills of
lading. The risk, as you know, is one OF
nnf np11Dr rnia oil nnrin A
Of the kind, originating in Texas, has
come to a decision in the Superior courts
Of mat State, uutaVOrable to the security
Of dealing in this class OF documentary
title.
A station agent of the Texas and Pa.
edc Hallway Company, in Texas, in COL
usion with a cotton buyer, issued a
fraudulent bill of lading for 800 bales OF
cotton which had never been received.
The buyer drew on New Orleans for the
yaiue of the cotton, with bill of lading at
Iached, ,and the drawee paid the draft with
our any SUSPICION that the bill OF lading
was fraudulent. OF course no cotton
# was delivered, and suit was brought
against the railway company for it's value,
the plaintiff cOntending that the rail-
way company were estopDed from deny
lng the representation OF their agent,
upon which an innocent third party
had acted, tnat the cotton had
oeen received into its custody. The
United States Circuit Court, district of
IeNas, gave judgment for the defendant,
ana though full report of the decision
mas not cone under my observation, there
Is no difficulty in making the suppOsition
mat the court had in mind an established
ptIhclpe in the law of agency, that prln-
clpai 10 NOT bound by an act of his agent
o"ypnd the sphere of his duty, as well as
lIe rule IN the law of shipping, stated
WIN us notifications, by the United
sIeS supreme Court In the case OF the
DeaWare ii Wall, 519 }, in the following
language:
h'iIs Of lading, when signed by the
master, duly executed in the usual course
BUSINESS, bind the owners OF the vessel,
% .ue Roous were laden on board or were
"C,uaIly delivered into the custody OF the
al"sleri nut 1t Is well settled law that the
5o ""eLs 'i,, are not liable if the party to whom
", orV olIl OF lading was issued had no goods,
" lue goods described In the bill OF lading
%e'e never put on board or delivered into
az custody OF the carrier or his agent"
i seems as II a great deal might be
u against this classification of au
cl,C cssnC act as one not binding on his prin-
o,ra' ouJ without entering into the legal
,"lneht ind good deal Of force in
way D"s o prominent New York banker,
,r'' IN conversation on the subject,
tbo oeu ths greater equity of casting Lpon
fai,ACC carrier the loss caused by an un-
,,aa.'9i agent, whom ne himself has
ra1S''uu Ieeu IN position TO commit the fraud,
,b3I, lhan compelling it to be borne by
nabI1' party Innocent of fault, and inca
'V vi protecting himself.
RESPONSIBILITY OF CARRIERS.
NJ '1 st1' UERested that BANKERS at the point
W M 'pmeht aud issue OF shipping docu.
u,tiI may refuse To give them currency
erfy a"'Iahed by inquiry that the prop
carria.a' ua' been actually received by The
espan' p"J the experience OF bankers,
nra.,ioall IN small places, is against The
fen,e CauOlllty OF such inquiry without OF.
OFF, " uGn customer in good standing
stron,o olli OF lading for negotiation. A
makir P'lC OI Ihe argument in favor OF
ofthnis, carriers responsible for the ac
is te. "Rents under such circumstances
SOM ~ gestOn from the same excellent
tect t6ot''uoI 'uoI tne carriers may easily pro.
their uehselyes by requiring bonds OF
mey,iea AGENTS, commensurate with the
at suit.uue OF the business done
the Ne point in question, al
local hoame same time making the
In tbo o"nN M responsible to a certain degree
exam,le exercise OF due diligence, as for
tho sbjt, IN making inquiry whenever
or slnieht appears unusual in amount
ping noISt.er, Ii at small cotton ship