Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-03-02
NOTES MADE BETTER
OUR TOBACCO MEN DISCUSS THE
FORM OF CERTIFICATEs.
REGULATIONS MADE MORE STRINGENT
A Series of Resolutions Adopted,
Looking 10 Making, This Class of
Security More Valuable and Guard
Ing Against Abuses.

The called meeting of the Richmond
Tobacco Trade held yesterday. with
President James ~ Boyd In the chair,
was well attended, and close attention
was paid to the proceedings, bearing on
lettering the value Of the tobacco note
and the security Of tobacco as collateral.
Mr. w c. Bentley had prepared n
paper-a series of six resoutions-which
were offered and discussed seriatim and
which. as appear herewith, were adopted
with but slight alterations and additions.
To every tobacconist Interested here
the resolutions are self-explanatOry. For
long time an indefinite status of the
tobacco-note security has been bar to
business, even when money was plentiful
and banks seeking good loans. which was
lucidly explained by Mr.. John p. Branch
president Of the Merchants Bank, who
stated that government bonds and cotton
certificates were considered prime securi-
". and that tobacco was better security
than wheat or corn, ETC., when the Trade
laws properly protected 1t by negotia-
| Dility, etc.
AS the Tobacco-Trade Association Is
not tncorporated-a fact 10 which the Dis
patch called attention yesterday-the
| trustee stub of the bonds required was
left TO the trust company issuing the
! bonds
Mr.. w. T. Hancock moved (seconded by
Mr.. r. G. Morton) that the tobacco ware
houses should place over the entrance OF
the main doors: This is licensed ware
1 sa1
| Mr.. l.. b. Vaughan of Crenshaw's
Warehouse. complained of the burden
| imposed on the warehouses already, in
cost OF sampling and sealing tobacco and
thought that Inspector w. NJ. Bridges
| should bear part of the latter burden of
expense to which the Inspector replied
| that decreased fees from the inspections
! would not begin to admit of such an eX-
pense on him. and he named quite small
| sum as the income from his office for the
| past six months.
THE RESOLUTIONS ADOPTED.
The resolutions adopted by the meeting
were as follows:
Resolved, l, That the proprle scrs of all
warehouses open for the storage of leaf to
! bacCo and stems i'm this city shall, on or by
| May LIST next, take out a regular city and
! State license, as prescribed by law, for
regular hypothecation warehouses and
| shall regularly keep such licenses in force
until the Tobacco Trade of this city is
duly notified in writing thirty days be-
| forehand Of purpose TO discontinue such
licensed warehouse and that a sign be
placed over the main entrance Of each
warehouse, Licensed Warehouse"
2. That the prOprietors of all ware
houses, as described in above resolution
No. !, shall have the words Negotiable"
and Licensed Warehouse" printed or
stamped across the face of all inspection
|
5. That the negotiable certificates issued
by any duly licensed warehouse, as here
inbefore described in resolutions Nos.
and 2, shall not be recognized by the men,
bers of the Tobacco Trade of this city
until such warehouse shall have furnished
to any responsible trust company as trus-
tee a satisfactory bond for not less than
5000. nor more than $4,000, for the full
protection of the holders of such certih-
Gates; the amount and terms Of the bond
of each warehouse to be fixed by the
Board of Directors of the Tobacco Trade.
4. That the proprietors of any warehouse
who shall remove any package or pack
ages of tobacco or stems from any given
warehouse to another warehouse. as de-
scr. BED on the negotiable certificate is
sued for the same, without previously
giving notice in writing TO the holders OF
the certificate or advertising in our daily
morning newspapers for three times a
week for thirty days before such contem-
plated removal, shall be fined by the To-
bacco Trade of Richmond 81 per package
for each one removed without such given
notice.
5. That any warehouse authorities who
may have at any time been found guilty
of issuing duplicate negotiable certificates
for the same tobacco, whether from care
lessness or Otherwise, shall be liable to the
Richmond Tobacco Trade on their bond
to the trustee for any loss that may be
sustained by the holder OF any such du-
plicate receipts.
g. That any warehouse proprietors who
may at any time be found guilty Of an in
fraction of any OF the foregoing five reso-
buttons, If, upon notification from the To-
bacco Trade of Richmond, Va. fails, |
within two days after such notification, |
to remedy such infraction. shall, in addi- |
tion 10 the penalties prescribed herein. |
be dropped from the list OF members of |
the Tobacco Trade. and the fact posted |
on the Exchange bulletin-board.
7. That the foregoing resolutions shall |
go into effect on the first day of May.
WILL HELP THE BUSINESS.
A well-known tobacco man, discussing |
this meeting yesterday with a Dispatch |
man, said:
1T might be well suggested that what
soever will strengthen this market by |
safety rules. throwing every safeguard
around the tobacco note as a security
enhancing its borrowing power and nego-
liability makes business for the trade,
and that as surely rebounds to the bene-
fit of the warehouses The Tobacco Trade
has always been singularly competent to
enforce its chief rules, and while ordi-
nances and customs have been rarely bro
ken, 1t was evident at this meeting that
the more rigid rules adopted were neces-
sary, while they in great measure re-
suited in the demands Of the banks for
their collaterals being put in better shape,
which should have been done long ago,
as has been suggested from time TO time
by members of the trade. One thing
touched upon by Mr.. Branch incidentally
justifies further attention of the trade
since the sample is all right, the Inspector
and the warehouses both bonded, what
is to establishers the value or condition
of the tobacco by sample?
Loans are made on the value OF the
tobacco, variable In itself as to markets,
when safe in order as to keeping quail
ties. At present the banks select their
own yaluers, often from their own direc-
tory and friends and where each bank
has such 1t would seem far better for the
trade or the president to appoint such
periodically, as to their fixtures for office,
cooperating with the banks, and which
it is competent for the trade TO do.
Tobacco having no fixed or positive
value is not salable at fair value at auc-
tions always. or rarely so. but its real
value on the other hand is less fuctuating
and sudden. and IL is among the best
collateral handled and is a cash article
ordinarily. While Richmond now, as al
ways, has first-class inspection market
and low charges. there are within the
last year or two inspection markets large