Upon payment of the debt the property must be returned with all interest or increase.

The bailor may make any disposition or transfer of the property not inconsistent with, but subject to, the rights of the bailee, and is entitled to the return of the property upon payment of the debt. The pledgee may sue for the debt, or by statute sell the property after notice, or sue for foreclosure of his lien. He can not take the property in satisfaction of the debt. If after sale there is a deficiency, he may recover the same from the pledgor; but the surplus, if any, must be turned over to the pledgor. The pawnbroker was the forerunner of the banker. The former takes chattels as security; the latter takes notes, stocks, bonds, and the like.

276. QUESTIONS

What is the largest and most important class of bailments? Define

a pledge or pawn. Illustrate collateral security.

Who has possession in the case of a pledge? What are the rights and duties of the pledgee? What are the rights of the pledgor? What are the remedies of the pledgee?

Describe the business of the pawnbroker.

that of the banker?

How does it differ from

AMBORLIAD

SALMON P. CHASE (1808-1873)

Educated at Dartmouth College, admitted to the bar in 1830, prominent in anti-slavery conventions, elected Governor of Ohio in 1855, nominated for President, appointed Secretary of the Treasury in 1861. Under his management the National Banking Act was passed which is still in force in 1913. In 1864 he was appointed Chief Justice of the Supreme Court. He presided at the trial of Andrew Johnson, President of the United States. His term as Chief Justice covers the Reconstruction period of American history. Many questions of great importance were settled during this time.

CHAPTER XXXVII

BAILMENT OF HIRE

277. CLASSES

278. HIRING OF USE

1. Duty of Hirer

2. Duty of Letter

279. HIRING OF CARE AND CUSTODY

1. Care

2. Warehouseman-Exception
3. Wharfingers

4. Safe Deposit Companies
5. Agisters

280. OTHER BAILMENTS

281. HIRING OF LABOR

1. Care and Skill

282. SPECIAL PROPERTY

283. COMPENSATION

284. MATERIALS USED

285. LIEN

1. Special Lien

2. General Lien

286. ENFORCING RIGHTS

287. RECAPITULATION

288. QUESTIONS

277. Classes. Bailments of this class are divided as follows: Hiring of use; hiring of care and custody; hiring of labor; and hiring of carriage.

278. Hiring of Use. In this bailment the hirer secures the use of personal property of another for a definite time, and for

which he pays a consideration. The business of the liveryman is the best illustration.

1. Duty of Hirer. It is the duty of the hirer or bailee to confine the use of the thing to the terms of the contract, yet a slight deviation would not make him liable for damages where he was not negligent. If a saddle horse was hired, the hirer would not be allowed to use the animal for draying purposes. Incidental expenses must be borne by the hirer, extraordinary expenses by the letter, or bailor. The hirer is bound to use ordinary care.

2. Duty of Letter. It is the duty of the letter to deliver the property at the agreed time, and in no way is he to interfere with its use by the hirer. The letter must keep the thing in condition for use, and must not so dispose of his interest so as to affect the rights of the hirer.

279. Hiring of Care and Custody. This is one of the bailments of hire in which proper care and custody is offered on one side for a consideration. To properly conceive of the magnitude of such bailments one has but to recall the immense business of the warehouses in all cities for the storage of goods, and trust companies that offer safe deposit places for valuables.

1. Care. The chief thing in this bailment is the use or security of the thing bailed, and since a consideration is given for this, only ordinary care is required. The relationship, except in so far as the degree of care is involved, is practically the same as in deposit. In this chapter will be discussed some business occupations confined to this class of bailment.

2. Warehouseman. A warehouseman is one engaged in the business of providing safe storage for property. He has been defined to be "A person who receives goods and merchandise to be stored in his warehouse for hire." The business includes the storing of grain (where the same grain is to be returned to the bailor), household goods, and commodities generally. There is no obligation on the part of the warehouseman to accept such goods. But in some states public warehouses have been licensed,