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Warehouse Receipts as Quasi-Negotiable Paper


WAREHOUSE RECEIPTS AS QUASI-NEGOTIABLE PAPER. Warehouse or elevator receipts for a stated amount of grain of a certain kind or quality are issued by the public warehousemen for grain stored with them, to be delivered to the depositor or his order on demand. These receipts, like bills of lading, represent the grain itself, and their sale or transfer operates a sale or transfer of the grain. By statute in some States, and also by custom these receipts have come to possess some of the qualities of negotiable instru ments. But in the absence of statute they are denied to be negotiable instruments, since they call for the delivery of goods and not the payment of money. (2d Natl. Bank v. Walbridge, 19 O. St., 419; Canadian Bank v. McCrea, 40 Ili., 281.) The receipt will not assist the bona fide holder to recover from the warehouseman, in case his agent issued it without getting the grain. (Burton v. Curyea, 40 III., 320.) And the warehouseman is not charged with the liability of a guarantor where the receipts are by statute made negotiable, (Hale v. Milwau kee Dock Co., 29 Wis., 492.)