The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-07-23
WAREHOUSE ACT IS
TO PLEDGE CROPS
FOR SHORT LOANS
New Law Secures Integrity to
All Certificates of Grain in
DepoSitorieS for Local Or
TRANSIT Oceanic Trade.

WASHINGTON, July 23,--The central
purpose of the United States warehouse
act which became a law on Aug. IL,
1916, is to establish a form of ware
house receipt for cotton, grain, wool,
tobacco and flaxseed, which will make
these receipts easily and widely nego-
table as delivery orders or as collat-
eral for loans and, therefore, of definite
assistance in financing crops. This
purpose the act aim to attain by IL
censing and bonding warehouses under
conditions which will insure the integ-
rity of their receipts n make these
receipts reliable evidence Of the con-
dition, quality, quantity, and owner
ship of the products named which may
be stored with them.
The secretary Of agriculture is given
general authority to investigate the
storage, Wa~rehousing, classification,
weighing, and certifying Of cotton, wool,
grains, tobacco and flaXseed, and to
classify warehouses for which licenses
are applied for or issued.
He may issue to warehouHemen H.
censes for the conduct of warehouses In
which such products may be stored for
interstate or foreign commerce, and
also of warehouses located in places
under the exclusive jurisdiction OF the
United States in which such products
may be stored. Persons who are not
WarehouSemen may also be licensed,
subject to the same requirements as
licensed wArehopseufeIIy to accept such
products fors tEtofakefI in warehouses
owned, operated or leased by any state.
Licenses may be issued for periods not
exceeding one year, and are renewable
upon showing satisfactory to the secre-
tary Of agriculture. A fee not exceed
ing 81 may be charged for each license
or renewal, and, In addition. a reason
able fee for each examination or in
Il snppftnh of n NVn rahnta &c mazda ttnp,, m
plication Of the warehouseman. II is
not, however, compulsory hat any
warehouseman be licensed by the sec
rotary Of agriculture. The system is
wholly permisslve.
Every applicant for a license as a
warehouseman must agree to comply
with the act and the rules and regu-
lations prescribed under 1t. He must
give n bond, with other than personal
surety, to secure the performance OF
his obligations as a ~warehouseman I'M
der the laws Of the place in which the
warehouse is conducted, under his con-
tract with his depoSitors, and under
the United States warehouse act, The
right Is given to any person injured
through its breach to sue in his own
name on the bond for any damages sus-
tanned by him. When such bond has
been given. the warehouse may be des-
ignated as bonded under the United
N"N' ""l SiiCNaSV W."
Licensed Warehouses.
The secretary of agriculture is au-
thoriZed to inspect warehouses licensed,
or for which licenses are applied for
to determine whether they are suitable
for the proper storage of agricultural
products; to prescribe the duties of H.
censed warehousemen with respect to
their care of, and responsibility for,
agricultural products, and to examine
agricultural products stored in licensed
warehouses. Deposits Of agriculture
products in such warehouses are made
subject to the act and the rules and
regulations under it.
Licensed warehousemen are not per.
mitted to discriminate between persons
desiring to store agricultural products
in their warehouses. All agricultural
products, except ,fungible products
tsuch as grain and the like), Of the
same kind and grade. for which separ.
ate receipts are issued, must be so kept
that they may be separately identified
and redelivered to the depositor, Ware
hpusemen may mix grain and other
fungible products, ordinarily mixed In
storage, when they are Of the same kind
and grade and are delivered from the
same mass, but may not mix such
products when they are of different
grades.
Warehouse Receipts.
Original receipts must be issued fol
all agricultural PRODUCTS stored in Ii.
censed warehouses, but only when such
products are actually stored at tn,
time Of the issuance OF the receipts
Additional or further receipts for thu
same products may only be issued II
place Of lost or destroyed receipts, anC
then only under specified conditions.
Tho act enumerates certain facti
which must be stated in all receipts
issued by licensed warehousemen. The,
! must show ta) the location of tn,
warehouse, (b) the date of issuance