The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1921-10-28
NOTE BOOK SKETCHES.
u. S. WAREHOUSE ACT.

regulations for tobacco warehouses
under the u. S. Warehouse Act, passed
in 1916 and amended in 1919. The pur-
pose of the act is to establish depos-
itories or storage for certain farm pro-
ducts, such as cotton, cheese, wool and
tobacco under government control and
with a government guaranty. Upon
application, warehouse company or
an individual owner of warehouse
may under certain prescribed regula-
tions obtain a government license to
conduct ''bonded warehouse" as q re-
pository for certain product for a
given time BY virtue of the license
the warehouse in reality becomes a
government storage plant for commod-
tiles, conducted under bond by the
owner or owners of the warehouse.
The application for license is made to
the secretary of the federal depart
ment of agriculture who through the
bureau of market furnishes the proper
application blanks. The secretary
through it's appointed representatives
makes an examination of the ware
house to determine whether it is suited
for the purpose of storage. In the case
of tobacco it must meet the require
ments of a safe storage of tobacco;
whether the warehouse man is solvent,
competent to conduct the warehouse,
and if his character as a man and a
businessman is guaranty behind the
other requirements. II the applicant
can not satisfy the department, the Ii
cense will not be issued. The ware
houseman must be able to show that
his assets above liabilities represent at
least $4.00 per each 1000 pounds tobac-
CO stored to the full capacity Of the
house The minimum assets must not
be less than $4,000, but it need not ex-
ceed $4,000. When the applicant has
received notice that license has been
granted, he must file with the secre-
tary of agriculture a bond covering all
obligations arising under the act and
during the period of the license. The
amount Of such bond to be at the rate
of $500 per each LOCO pounds tobacco,
but not in less sum than $4,000, nor
more than $50, ZOO. If the applicants
assets do not reach the required amount,
he may still obtain license by adding
%ha Iafn %O fhn Of fha
Additional conditions may require addi-
tional amounts to the size of the bond
at the discretion Of the department.
*#*
The second and most interesting
phase of the bonded warehouse propo-
sition is the
WAREHOUSE RECEIPT.
Upon accepting tobacco for storage
the warehouse man issues to the depos-
itor warehouse receipt. This receipt
must bear on the face of it name of
warehouse man, license number of
warehouse, date when license expires,
whether Incorporated or not, amount
of capital stock if Incorporated, amount
of bond, number of each package stored
Zone receipt to be issued for each pack
age or case), whether tobacco is insur-
ed by warehouse man, and against
what nature of loss, also 'sNot Nego-
TABLE,, s'Non-Negctiable," or ssNego-
table, as the case may be. The time
limit of storage is three years, but a
reissue may be made for another per-
iod not exceeding three years. If the
receipt is negotiable it shall bear form
of terms for Endorsement, showing ow-
nership of liens, mortgages or other
membranes upon the tobacco covered
by the receipt. The grade, type and
condition of the tobacco received must
also be stated. The warehouse mans
claims against the stored tobacco are
also noted on the receipt. There are a
number of points as to the duties of
the warehouse man, such as regards
his sureties, insurance, keeping of rec
ords, business hours, which we omit
here. Also specifications covering fees,
licensed inspectors, samplers, weighers,
classification of tobacco, standards,
ETC., which we shall not discuss this
time. The warehouse receipt under the
new act is more than receipt; each
receipt represents, not only the ac-
knoledgement of the warehouse man to
the depositor of tobacco of the fact
that tobacco is stored in the warehouse,
but it represents certain amount Of
actual credit to the holder of the re-
ceipt, an actual asset upon which, under
the government guaranty, a bank may
issue. credit to the holder in the amount
warrantedFby the nature Of che tobacco
and the market value of it at the time.
That the bank will play safe in extend
ing loans on the receipts is natural, but
q warehouse receipt will always repre-
Il