The weekly times-record. (Valley City, N.D.) 1912-1922, 1916-01-20
Grain and Elevator
Rulings Of Commission

recent rulings Of the railroad com
mission, in the matter of grain and
elevators. These have never before
been published:
In a number of cases where grain
dealers have ceased business through
sale of elevator, retirement, or in case
of fire or insolvency, they have ex'
3 perienced difficulty in calling in out
:, standing storage tickets, particularly
, on a rising market, the ticket holders
, desiring to hold for higher prices. The
railroad Commission has ruled that a
dealer under such circumstances may
deposit in the name of the ticket hold
: er in some local bank of good repute
the value of the outstanding grain on
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 warehouseman's account
after the warehouseman has gone out
of business. In several instances ele-
vator companies have failed or an ele-
vator has burned and it's 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 to
! be paid. The railroad commission
holds that the date the warehouse was
closed or burned shall be the date
for redemption 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
warehouses and grain therein have
some times attempted, through assign
ment by mortgagor, to collect the in
surance on stored grain. The railroad
commission holds that insurance on
stored grain in the warehouse, or in
transit, is trust fund for the benefit
of the owner of the grain.
According to recent ruling of the
railroad commission warehouses can
not charge storage on grain or for
: elevating it during the first 20 days, if
the warehouseman buys the grain. If
the grain is redelivered 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 stor-
ed 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
the state in the near future, and rule
will be laid down as to whether or not
storage charges shall be made compul-
sorry in all cases. The law is ambig-
uous on this point.
Section 3112, compiled laws of 1913,
prohibits the issuance by. grain eleva-
tor companies of storage tickets ex-
cept for grain actually delivered. Ere
quently banks or others have advanc-
ed money on storage tickets issued as
security for the loan by the elevator
company which did not represent an
actual delivery 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 hold
ers 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 commits
sion will use its good oIiues in collect.
ing from the surety fsce from charge.
In this way delays and the expense Of;
costly litigation have been obviated
to both parties to the issue during the
past two or three years.
The bond furnished the state by ele-
vator companies is supposed to take
care Of all stored grain received by d
company. 1t frequently happens that
the thrush of grain to the elevator
makes it necessary to ship out some
of all of the stored grain, and a ques-
ton has arisen to what extent this
may be done. The railroad commission
takes the view that elevators NAV shin