The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-09-30

statute creating labor and supply liens, and
the statute concerning warehouse receipts.
This interest has probably been height
ened with the public by the highly COM
mandatory editorial notice OF the case IN
the June number of the Virginia Law
Register In which the case Is reported.
and where It Is characterized by the ed
itor as being case OF extreme import
arce." and by the publication In your
paper by Mr.. William l.. Royal OF sew
eral notices OF the case, proclaiming the
decision as one Of the most important
rendered in recent years, and as one
worth millions OF dollars to Industrial
enterprises.
Under these circumstances. ] approach
The task OF submitting review OF the
grounds upon which the court rests It's
decision. and OF making some suggestions
az \, the correctness OF that decision
Nth misgivings, having been the com
missioner of the court whose decree con-
frming my report. was reversed. the ap-
peal presented several controversies. but
the leading one was conflict between
= supply claimants and warehouse receipt
/ claimants. And as to this the facts were
these:
THE FACTS or THE CASE.
The Gallego Mills Company, corpora
ton conducting a flour mill business. In
4 order to Increase its facilities Tor credlt
established within the mill what IT styled
Its .'warehouse." and upon the flour de-
nosited there. whether ground or bought
BY It, filed out warehouse receipts and
took them to bank and pledged them for
loans. In this process 1t became Indebted
to the Union Bank OF Richmond. and to
. the Savings Bank OF Richmond IN the
aggregate sum Of about 1900. The ap-
pellants who had furnished -four bags to
tho mills, claimed lien therefor under
tho statute, and the question arose wheth-
er they, by virtue of the supply lien
statute, were entitled to the proceeds OF
sale OF the -four (amounting to about
$500 as sold by the receiver OF the COURT
OF the banks. by virtue OF the warehouse
receipts pleged to them as above. the
commissioner and the Chancery Court con-
f7rming his report. holding that Millhiser
&. Company were entitled to priority.
while the Court OF Appeals reverses that
decision, and holds that the banks are en-
titled to the -four.
THE COURTS MISTAKE.
The court places its decision upon the
ground that the banks were purchases
for value, without notice. and that 1t was
not a conflict between licnors, but be-
tween purchaser. on the one hand and
llenor on the other.
It Is in this particular that with great
cndence, I venture the opinion that the
court has made q mistake. Their Ian
guage page 1881 Is:
ut will not be commended that the reg
istry laws of the State have any appli-
cation to sale and delivery OF personal
property, and the question OF priority
\ can, ont, ~, sc between claimants as
sorting a lien upon the property OF their
debtor.
ut Is not e lien that the appellees are
asserting upon the flour and wheat In
question, but the legal title. the right OF
property made complete by possession
and for value In due course OF trade
With entire respect for the court, I
shall undertake to show that 1t was liens,
and only liens. which the banks (the APP
rellees) were asserting upon the -four.
On page ISL of the opinion the court
gives a copy OF the warehouse receipt
issued by the mills to the Union Bank.
tho same reading as follows:
1.-THE Gallago Mills Company,
Richmond, Va.
"No. Az Warehouse Receipt
1--WE have this day received In store for
and on account OF Union Bank Richmond.
N Va, one hundred 600 ss(patent marked
4 2l,33s) barrels -four, to be held subject to
! the order of said bank. and to(be delivered
only on the surrender OF this receipt.
i
&c. L. TODD, President.
III D. Riddick. Shipping Clerk Grain
Receiver"
The cour. does not give copy of the
note, which pledged the warehouse re-
ceipt. A copy OF the note given by the
mills to the Savings Bank OF Richmond Is
In the record which was before the Court
OF Appeals. and Is as follows (page 90
Sup Rec,):
"s15. 90. '.Richmond, Va. Feb. 4, 1897.
Fifteen days after date we promise to
pay to ourselves or order. without offset,
at the Savings Bank of Richmond at
Richmond, Va, for value received having
deposited MS collateral security for the
payment of this and any other liability
10 the holder thereof, the following prop
erty. with authority to sell, use. transfer
or hypothecate said collaterals, or any
that may be substituted thereof, or added
thereto. for which purpose hereby con-
stItute and appoint the cashier OF the
savings Bank of Richmond true and law
full attorney:
Warehouse receipt. No. 416, for one
hundred doo) barrels -four mkd. 90"
with the further right to call for add-
tional security, In case there should be
decline In the market value thereof,
and on failure to respond, said obligation
shall be deemed to be due and payable
! without demand or notice. with full
power and authority to the aforesaid at
torney to sell, transfer. assign and de-
liver the above mentioned security, or any
part thereof. or any substitute thereof,
or any additions thereto, at public or pri-
vate sale. at the option OF the said holder
or his assigns. on the non-performance OF
this promise, or the non-payment of any
OF the liabilities above referred to-. at any
time or times thereafter, without demand.
advertisement or notice. The maker and
endorser of this note hereby valves any
benefit of exemption under homestead or
bankrupt laws as to this debt,
THE CALICO MILLS CO.,
"By G. L. Todd. pt.
'THE GALLEGO MILLS CO.,
"By W. r, Todd. Act. Sec. & Treas
ut should be explained that the note
and warehouse receipt given by the mills
to the Union Bank and those given by
the mills to the Savings Bank are ex-
actly alike, both being written on printed
forms. where amounts and names were
n