Section 54.-[Delivery of Goods without Obtaining Negotiable Receipt.] A warehouseman, or any officer, agent or servant of a warehouseman, who delivers goods out of the possession of such warehouseman, knowing that a negotiable receipt the negotiation of which would transfer the right to the possession of such goods is outstanding and uncancelled, without obtaining the possession of such receipt at or before the time of such delivery, shall, except in the cases provided for in Sections 14 and 36, be found guilty of a crime, and upon conviction shall be punished for each offense by imprisonment not exceeding one year, or by a fine not exceeding one thousand dollars, or by both.

See note to Section 50.

Section 55.-[Negotiation of Receipt for Mortgaged Goods.] Any person who deposits goods to which he has not title, or upon which there is a lien or mortgage, and who takes for such goods a negotiable receipt which he afterwards negotiates for value with intent to deceive and without disclosing his want of title or the existence of a lien or mortgage shall be guilty of a crime, and upon conviction shall be punished for each offense by imprisonment not exceeding one year, or by a fine not exceeding one thousand dollars, or by both.

See note to Section 50.

PART V.

INTERPRETATION.

Section 56.-[When Rules of Common Law still Applicable.] In any case not provided for in this act, the rules of law and equity, including the law merchant, and in particular the rules relating to the law of principal and agent and to the effect of fraud, misrepresentation, duress or coercion, mistake, bankruptcy or other invalidating cause, shall govern..

A similar provision is commonly inserted when an attempt is made to reduce to statute form a topic of the law, as in the Negotiable Instruments Law or the Sale of Goods Act.

Section 57.-[Interpretation Shall Give Effect to Purpose of Uniformity.] This act shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.

This section introduces a new and necessary principle of construction. It would be unfortunate for courts of each state to follow the general rule of construing the law with reference to previously existing rules in that state-possibly rules peculiar to that state. The courts should in view of this section consider not primarily the law previously existing in one state, but in the states generally.

Section 58-[Definitions.] (1.) In this act, unless the context or subject matter otherwise requires

"Action" includes counter claim, set-off and suit in equity. "Delivery" means voluntary transfer of possession from one person to another.

Fungible goods" means goods of which any unit is, from its nature or by mercantile custom, treated as the equivalent of any other unit.

"Goods" means chattels or merchandise in storage, or which has been or is about to be stored.

"Holder" of a receipt means a person who has both actual possession of such receipt and a right of property therein. "Order" means an order by indorsement on the receipt. "Owner" does not include mortgagee or pledgee. "Person" includes a corporation or partnership or two or more persons having a joint or common interest.

To purchase" includes to take as mortgagee or as pledgee. "Purchaser" includes mortgagee and pledgee.

"Receipt" means a warehouse receipt.

"Value" is any consideration sufficient to support a simple contract. An antecedent or pre-existing obligation, whether for money or not, constitutes value where a receipt is taken either in satisfaction thereof or as security therefor.

"Warehouseman" means a person lawfully engaged in the business of storing goods for profit.

(2.) A thing is done "in good faith" within the meaning of this act, when it is in fact done honestly, where it be done negligently or not.

The only one of these definitions requiring comment is that of value, which follows the Negotiable Instruments Law and applies the rule generally prevailing in regard to bills and notes to warehouse receipts.

Section 59.-[Act Does not Apply to Existing Receipts.] The provisions of this act do not apply to receipts made and delivered prior to the taking effect of this act.

All

Section 60.-[Inconsistent Legislation Repealed.] acts or parts of acts inconsistent with this act are hereby repealed.

Section 61.-Time when the Act Takes Effect.] This act shall take effect on the

nine hundred and

day of

one thousand

Section 62.-[Name of Act.] This act may be cited as

the Warehouse Receipts Act.

DRAFT OF AN ACT TO MAKE UNIFORM THE LAW OF

BILLS OF LADING.

[To be further considered by Commissioners on Uniform State Laws.]

Be it enacted, etc., as follows:

PART I.

THE ISSUE OF BILLS OF LADING.

Section 1.-[Persons Who May Issue Bills.] Bills of lading may be issued by any common carrier.

Section 2.-[Form of Bills.

Essential Terms.] A bill

need not be in any particular form, but every bill must embody within its written or printed terms

(a.) The date of its issue,

(b.) The name of the person from whom the goods have been received,

(c.) The place where the goods have been received,

(d.) The place to which the goods are to be transported, (e.) A statement whether the goods received will be deliv ered to the bearer, to a specified person, or to a specified person or his order,

(f.) A description of the goods or of the packages containing them, and

(g.) The signature of the carrier, which may be made by his authorized agent.

A carrier shall be liable to the holder of a negotiable bill for all damage caused by the omission therefrom of any of the provisions herein required.

Section 3.-[Form of Bills. What Terms May Be Inserted.] A carrier may insert in a bill, issued by him, any other terms and conditions, provided that such terms and conditions shall not

(a.) Be contrary to public policy or to the provisions of

this act,

(6.) In any, wise impair his obligation to exercise at least that degree of care in the transportation and safe-keeping of the goods entrusted to him which a reasonably careful man would exercise in regard to similar goods of his own.

Much litigation has arisen over the point involved in 3 b. The provision as drawn is in accordance with the weight of authority (6 Cyc. of Law, 393) and is similar to the corresponding section of the Warehouse Receipts law.

Section 4.-[Definition of Non-Negotiable Bill.] A bill in which it is stated that the goods received will be delivered to the consignor, or to any other specified person is a nonnegotiable bill.

Section 5.-Definition of Negotiable Bill.] A bill in which it is stated that the goods received will be delivered— (a.) To the bearer,

(b.) To the consignor or his order,

(c.) To any other specified person or his order, or

(d.) To the order of a specified person,

is a negotiable bill.

No provision shall be inserted in a negotiable bill that it is non-negotiable. Such provision, if inserted, shall be void.

Section 6.-[Negotiable Bills Must not Be Issued in Sets.] Negotiable bills shall not be issued in parts or sets. If so issued, the carrier issuing them shall be liable for failure to deliver the goods described therein to anyone who purchases a part for value in good faith, even though the purchase be after the delivery of the goods by the carrier to a holder of one of the other parts.

The issue of bills of lading in parts has been often condemned. It is a direct invitation to fraud in the case of negotiable bills, for one part is as much an original as another. Moreover, it is impossible to guard against the fraud, for it has been held that one who has contracted to buy goods and pay the price on transfer of the bill of lading must pay on having one of a set tendered him. He cannot demand all