A SYSTEM OF ACCOUNTS FOE COTTON WAREHOUSES. 



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(h) A statement that the receipt is issued subject to the United States warehouse 

 Act and the rules and regulations prescribed thereunder. 



(i) If the receipt be issued for agricultiu'al products of which the warehouseman is 

 owner, either solely or jointly or in common with others, the fact of such ownership. 



{j) A statement of the amount of advances made and of liabilities incurred for 

 which the warehouseman claims a lien : Provided, That if the precise amount of such 

 advances made or of such liabilities incurred be at the time of the issue of the receipt 

 imknown to the warehouseman or his agent who issues it, a statement of the fact that 

 advances have been made or liabilities incurred and the purpose thereof shall be 

 sufficient. 



{h) Such other terms and conditions within the limitations of this act as may be 

 required by the Secretary of Agriculture. 



{I) The signature of the warehouseman, which may be made by his authorized 

 agent: Provided, That unless otherwise reqxiired by the law of the State in which 

 the warehouse is located, when requested by the depositor of other than fungible 

 agricultiu'al products, a receipt omitting compliance with subdivision {g) of this 

 section may be issued if it have plainly and conspicuously embodied in its written 

 or printed terms a provision that such receipt is not negotiable. 



Compliance with all of the conditions of receipts issued under the 

 United States warehouse Act is not obligatory unless warehousemen 

 operate under that law. 



Either a negotiable or a nonnegotiable receipt may be issued and 

 it may be well to explain the two types. A negotiable receipt must 

 state either that the goods received will be delivered to the bearer, 

 or that they wiU be dehvered to a specified person or his order. 

 A receipt in which it is stated, either that the goods received will be 

 delivered to the depositor only, or that they will be delivered only to a 

 specified person named in the receipt, is not negotiable. 



A nonnegotiable receipt should always bear the words "Non- 

 negotiable" or "Not negotiable" written or printed upon its face. 

 Form 3D (page 21) shows a form of nonnegotiable receipt. 



In the case of a lost or stolen receipt, if another is issued, the word 

 "Duphcate" should always be marked across its face, and usually a 

 bond is required in order to protect the warehouseman from loss in 

 case of the reappearance of the original receipt. The practice in this 

 and other transactions in connection with the receipt necessarily 

 must vary in accordance with the State laws on the subject, and 

 every warehouseman must be careful to comply with the applicable 

 law of the State or other jurisdiction in which he operates. 



There is a wide variance of opinion among warehousemen as to 

 the relative merits of the one-bale and the multiple-bale forms of 

 warehouse receipts. The tendency in many of the well-organized 

 warehouses seems to be toward the use of the one-bale receipt, and 

 in most cases this form seems to be preferable to the multiple-bale 

 form. There are arguments both for and against this form. The 

 fact that the one-bale type requires more work in its issuance is bal- 

 anced by its desirability in the event that a person desires to sell or 

 transfer only one or a few bales out of a lot that would otherwise be 



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