Warehouse

A building for the safe-beeping of merchandise. - Warehouseinan. One who receives and stores goods as a business for a compensation or profit. 2 A person whose business is the receiving and storing of merchandise for a compensation. Under dutieslaws, an importer who does not choose to pay duties may have the goods stored in a *' public warehouse " designated by law, there to remain, subject to the duties and storage fees, till withdrawn for consumption, exportation, etc. This "warehousing system," begun under the act of August 6, 1846 (St. L. 53\ was extended by the establishment of private bonded warehouses, under act of March 28, 1854 (St. L. 270).'> The object of the Warehousing Act of 1846 was to facilitate and encourage commerce by exempting the importer from the payment of duties until ready to bring his goods into market, All elevators or storehouses where grain or other property is stored for a compensationwhether the property stored be kept separate or not, are declared to be "public warehouses." * The act of April 35, 1871, intended to give effect to that article, is not repugnant to the Constitution of the United States. Where warehouses are situated and their business is carried on exclusively within a State, she may, as a matter of domestic concern, prescribe regulations for them, notwithstanding they are used asBrown v. Lull, 2 Sumn. 449 (1836), Story, J.; Harden V. Gordon, 2 Mas. 556-57 (l823); The Georgeanna, 31 F. R406(188r;; 3 Kent, 193. 8 Bucher, v. Commonwealth, 103 Pa, 534 (1883), Goi> don, J.; Pa. Act 34 Sept. 1866. 3 See R. S. §§ 2954-3008, cases. 4 See R. S. §§ 2964-65. Tremlett v. Adams, 13 How. 303(1851). See Hartranft v. Oliver; 125 U. S. 537-39 (1888): Act 3 March instruments by those engaged in inter-State as well as in State commerce; and, until Congress acts with reference to their inter-State relations, such regulations can be enforced, even though they directly operate upon commerce beyond her immediate jurisdiction.' The undertaking of a warehouseman is a contract for mutual benefit. Ordinary care toward preserving the merchandise is required of him. When a common carrier has transported goods, ready to be forwarded by another, he continues liable as a warehouseman only. ' Nor is it necessary that the goods be housed, in order to affect a bailee with the liabilities of a warehouseman; it is enough if they are actually in his custody for housing. A warehouseman has a lien for all reasonable charges.' A public warehouseman assumes an obligation to serve the entire public. He cannot escape this obligation by calling himself a " commission merchant." " In the ordinary railway transportation by cominon carriers of goods there is no obligation after the goods reach their destination but to place them safely in a warehouse."* State statutes largely regulate the rights and duties of warehousemen. Although their receipts for the property are made negotiable, they as bailees are not guarantors of the title to the property. A receipt in Pennsylvania, under the act of September 24, 1866, must be issued by the person in possession of the goods in his own right, and not by his agent." If a receipt is that of a warehouseman it is negotiable without regard to its form, and to destroy that negotiabilitj' notice to that effect must appear upon its face. But unless it is in fact a warehouse receipt no form will make it such.' In the absence cf statutory regulations, the delivery of a receipt payable to bearer, as collateral security, without indorsement, passes the legal title to the pledgee as if there had been an actual manual delivery. Although, to enable the transferee to sue on the receipt in his own name at law, a statute may require an indorsement to pass the legal title, and the holder of an indorsed r5ceipt is protected against latent equities, yet a transfer by delivery passes a special property and constructive possession sufficient to create a valid pledge as between the parties and as against a third person who has not acquired a prior or intervening right.' See Bailment; Carriee, Common; Lading, Bill of; Police, 2; Wharfinoer. 1 Munn V. Illinois, 94 U. S. 114, 123 (1876), Waite, C. J. 2 Pars. Contr. 139 3; 2 Kent, 565; Stoi-y, Bailm. § 444; Seals V. Edmondson, 71 Ala. 511 (1883); Bank of OswegoV. Doyle, 91 N. Y. 32 (18&3); 2 Kan. Law J. 99 (1885). = Nash V. Page, 80 Ky. 5.39 (1882); 103 Pa. 535. * American Union Express Co. v. Bobinson, 72 Pa. 278 (1872); Redf. Car., 33, cases; White v. Colorado Central E. Co., 3 Mc Crary, 559, 564 (1878), cases. 6 Mechanics', Sec. Ins. Co. v. Kiger, 103 U. S. 355 (1880); Adams v. Merchants' Nat. Bank, 9 Biss. 396, 400-2 (1880), cases. People's Bank u Gayley, 92 Pa. 527, 529 (1880). See also 6 Col. 366; 40 111. 320; 63 Miss. 86.