The herald and news. [volume] (Newberry S.C.) 1903-1937, 1917-06-19
THE STATE WAREHOUSE SYSTEM
ANALYSIS OF THE LAW


the Storing, Grading and Marketing
OF Cotton
It's purpose was "to protect the
people of this State from irreparable
loss, to provide some general plan for
warehousing, and to finance the crop
by converting cotton into a egotlable
security which will command respect
in the money markets OF the world.
1t was designed to establish Cot
ton Warehouse System within the
police powers of the State and for
the general welfare"
The administration of the system
was placed in the hands of the State
Warehouse Commissioner who was
elected by the General Assembly Tor
the term of two years.
The State Warehouse Commissioner
is required to give "a bond to the
State of South Carolina in the sum
of Fifty thousand dollars to guaran-
tee the faithful performance OF his
duties"
The Commissioner is empowered Ito
acuqire property for the warehous1ng
of cotton" and to supervise the ope-
ration of warehouses through bonded
managers.
The cotton stored N warehouse
connected with the State Warehouse
System is at al! times and automau-
ally covered by assurance.
"The Warehouse Commissioner shall
ACCEPT as authoritative the standards
and classifcations of cotton estaD-
lished by the federal government.
For all cotton stored in a State
Warehouse the Commissioner shall
issue a receipt under abe seal and
in the name Of the State of South Car
DINA"
Every bale of cotton stored in a
State Warehouse must carry tag
showing that it has been Legally
weighed" by the manager OF the
warehouse and that it has been
graded by "a Federal or State IN
spector."
The warehouse receipt issued for
the cotton must state the location OF ,
warehouse, name Of manager, or agent
of the warehouse, the mark on the
bale. weight, grade and whether long
or short staple, so as to be able 10
deliver on surrender of the receipt the
identical cotton for which it was
given"
"The said receipt carries the abso-
lutte title of the cotton" the receipt
is transferable by written assign
ment and actual delivery"
"The weights. classes and grades
of cotton on storage are under this
Act only guaranteed by the State IN
favor of those who loan money or buy
cotton stored in warehouses;
Cotton represented by warehouse re-
ceipt is deliverable only. on physl-
cal presentation Of the receipt Whlch
is 70 ~ r-erked cancelled when the
cc...a is taken from the warehouse.
ac.- manager or other employee OF
a State Warehouse who shall fraudu-
lently issue receipt, or duplicate re-
ceipt for cotton. or who shall deliver
cotton frnm warehouse without the
prod" IN of the receipt therefor. or
who fails 70 mark such receipt Can
celled' the delivery Of the cotton.
.psuosIIcEut 70 paug 1I!AeeV 90 lleQs
or both GOD md Imprisoned. "Anv
nersor ---,-~ ehall da9os;t or attennt 10
deposit cotton upon which a lien or
mortgage exists, without notifying the
manager Of the warehouse, shall beI
punished by fine and imprisonment
for period of not more than one:
wear. and a fine not more than one
thousand dollars"
Benefits to Farmers.
Under the unusual conditions which
have prevailed during the past three
wears the State Warehouse System
has been subjected to the severest
tests and has proven a success
great blessing to the cotton farmers
Of South Carolina. The benefits have
been manifold.
co The building Of warehouse IN
a community has aroused the spirit
of cooperation among the farmers
of that community. Mutual helpful
ness leads to unselfsh service and to
the actual practice of the great motto
of AGRICULTURAL cooperation: Cali for
each, and each for all"
(2) The concentration of all cotton
grown in community in local ware
house has made it possible and easy
for the farmers to make combined
sales, selling in hundred lots rather
than by single bales or in small lots.
(3) Each. bale as it is stored in a
State Warehouse is legally weighed
and carefully graded by a Federal or
State Inspector" the owner OF the
cotton is given a warehouse receipt
which accurately describes each bale,
so that 'the identical cotton" can
and must always be delivered upon the
surrender Of the receipt: thus the
owner can intelligently market his
cotton in and through State Ware
house and always sell at top-notch
prices.
(4) "The said receipt carries the
absolute title of the cotton and Isl
transferable bv written assignment
and actral delivery ''Sucn receipt
~ a