Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1916-01-13
fARMERS D[R[L|CT IN
PRESENTING \ ! !. TICKETS {!
Elevator Companies Scored by
People Ignorant Of the
Law
RAILROAD COMMISSION
GIVES MANY RULES
If One Patron Receives Free Stor-
age, All Must Be Given
Same Treatent.

The railroad commission Of thi
state in order to settle question:
which frequently arise and which ar
then referred to it for adjudication
has prepared a general letter to tn
public in which many of the shor
and simple rules of the statutes ar
set forth. The most important o
these questions are answered in orde
to bring the grain seller and th'
grain buyer in closer relations an(
prevent misunderstanding.
The rules are as follows:
In a number of cases where gran
dealers have ceased business through
sale of elevator. retirement, or in cast
of fire or insolvency. they have ex
pcricnced difficulty in calling in out
standing storage tickets, particular!
on rising market, the ticket holder:
desiring to hold for higher prices The
railroad commission has ruled that
|, dealer under such circumstances may
deposit in the name of the ticket hold
or in some local bank of good reputt
the value of the outstanding grain or
his storage tickets on the day he quit
business and the holder of the ticket
is compelled after due notice to accept
this price and surrender his ticket, as
the commission holds he cannot specu-
late on the warchouscnan account
after the warehouseman has gone on,
of business. In several instances elc-
vator companies have failed or all ele-
vator has burned and its owner has
not resumed business. A question has
arisen in such cases as to the date out
standing storage tickets became pay
able, as that date governs the price tc
be paid. The railroad commission holds
that the date the warehouse was closed
or burned shall be the date for re-
demption of tickets
Parties have frequently endeavored
to inspect the books OF elevator COM
panies for one reason or another. The
railroad commission has held that
such records are private and not open
to the public.
Parties holding mortgages on grain
wal ehouses and grain therein have
some times attempted through assign
ment by mortgagor. to collect the i'll
surance on stored grain The railroad
commission holds that insurance on
stored grain in the warehouse, or in
transit. is a trust fund for the benefit
of the owner Of the grain.
According to recent ruling OF the
railroad commission warehouses cannot
charge storage on grain or for elcvat-
ing it during the first 90 days, if the
warehousenan buys the grain. If the
grain is redelivercd to the holder Of
storage ticket these charges may be
made.
Heretofore the railroad commission
has held that where one elevator in a
town does not charge storage on stored
grain. competitors may follow suit
but in no case can free storage be
given one patron and not another. The
subject of storage will be made a
matter Of conference by the railroad
commission with the grain dealers Of
will be laid down as to whether or not
storage charges shall be made compul-
sorry in all cases. The law is ambiguous
on this point
Section 3112. compiled laws OF 1913.
prohibits the issuance by grain elevator
companies Of storage tickets except tor
grain actually delivered. Frequently
banks or others have advanced money
on storage tickets issued as security
for the loan by the elevator company
which did not represent an actual deli
very OF grain. The railroad commission
holds this to be an illegal transaction.
The railroad commission holds it to
be unlawful for elevator companies to
place on storage tickets any notation
modifying the grade fixed or liability
incurred.
Special tickets for grain stored in
special bins and in different color from
the ordinary ticket is permitted by the
railroad commission
Favorable decisions have been made by
the courts in cases brought by holders
of grain storage tickets against the bond
securing same. All ticket holders,
however. must unite in the suit. When
asked to do SO by the ticket holders
in cases of bankrupt grain companies,
the railroad commission will use its
good Offices in collecting from the
surety free from charge. In this way
delays and the expense Of costly litiga-
ton have been obviatcd to both parties
to the issue during the past two or
three years.
The bond furnished the state by clc-
vator companies is supposed to take
care OF all stored grain received by a
company. 1t frequently happens that the
thrush Of grain to the elevator makes
it necessary to ship out some or all of
the stored grain, and question has
arisen to what extent this may be done.
The railroad commission takes the
view that elevators may ship out stor-
ed grain to the amount Of the bond,
$4,000 and no more. and that when
ever the stored grain on hand and the
amount of the bond fails to equal the
amount OF all stored grain, additional
bonds must be furnished the state.
Stored grain shipped to commission
house having a private claim against
the warehouseman cannot be converted.
according to the ruling of the railroad
commission, to the, settlement of such
claim to the disadvantage of the owners
Of the grain and the surety company
bonding the elevator company.
According to the North Dakota law,
holders of grain storage tickets may
receive delivery at any grain terminal.
or may demand return of the actual