A holder in good faith of a warehouse receipt is entitled to rely on the statements it contains. So warehousemen should be careful not to issue receipts except for goods actually delivered to them, nor should they deliver goods to any one except upon surrender of the receipt. Otherwise, they might have to deliver a second time and have to buy the goods themselves with which to do so. Of course, if 1,000 bushels of wheat are deposited the warehouseman does not have to deliver the same identical wheat, but he must deliver 1,000 bushels of the same grade. The warehouseman is justified in delivering the goods (1) to the person lawfully entitled to the possession of the goods or his agent; (2) a person who is either himself entitled to delivery by the terms of a non-negotiable receipt issued for the goods, or who has written authority from the person so entitled either indorsed upon the receipt or written upon another paper; (3) a person in possession of a negotiable receipt by the terms of which the goods are deliverable to him or order or to bearer, or which has been indorsed to him or in blank by the person to whom delivery was promised by the terms of the receipt or by his mediate or immediate indorsee. If the receipt has been in any way altered the warehouseman is liable only according to the original terms. If a receipt has been lost the warehouseman may be ordered by a court to deliver the goods, provided that loss or destruction of the receipt is proved and that the person to whom the goods are then delivered furnishes a bond to protect the warehouseman from loss in case the original receipt should ever be presented. The warehouseman is liable, unless the receipt specifically provides otherwise, for any loss or injury to the goods caused by his failure to exercise such care in regard to them as a reasonably careful owner of similar goods would exercise. Banks lend money on negotiable warehouse receipts covering staple commodities, and can safely lend on non-negotiable receipts

Non-Negotiable Warehouse Receipt

East And West Warehouse Company

No.................. New York,................................ 192..........

Received On Storage In Warehouse, 100 Main St., New York City

From....................................The Following Packages (Contents And

Condition Of Contents Unknown) EX................................................

Said To Contain The Goods Described Below.

Marks

Number

Packages Kind

Description

Which Will Be Delivered To The Depositor On Payment Of The Charges

Specified Hereon.

Advances Made Labor In And Out Per Storage Per Month Per

East And West Warehouse Company,

.......................................................................................

President

The Words "Not Negotiable" Are Required to Be Printed Across the Face of the Non-Negotiable Warehouse Receipt.

Negotiable Warehouse Receipt

East And West Warehouse Company

No.................. New York,...................... 192.....

Received On Storage In Warehouse, 100 Main St., New York City,

From................................. The Following Packages (Contents And

Condition Of Contents Unknown) EX.............................................

Said To Contain The Goods Described Below.

Marks

Number Packages Kind

Description

Which Will Be Delivered To Order On Payment Of The Charges Specified

Hereon And The Surrender Of This Receipt

Advances Made Labor In And Out Per Storage Per Month Per

East And West Warehouse Company,

.....................................................................................

President only when the goods are stored in the name of the bank. The loan should be made only when the character of the merchandise has been examined by the lending bank and it is entirely satisfied in this respect. Stocks. - A certificate of stock represents part ownership in the property of a corporation and entitles the owner to his proportionate share of the assets and of the profits. Stock usually has no maturity and the owner must depend upon the liquidation of the business or the sale of the stock to recover the money represented by the value of the certificate. Stock is generally divided into two principal kinds - common and preferred. The former has control of the business by electing the directors. The latter is usually preferred as to assets in case of liquidation and in the distribution of earnings up to an agreed percentage. The preferred dividends may be cumulative, which means that if the earnings within a certain period are not sufficient to pay the preferred dividend for that period, then the back dividends on the preferred stock must be paid from earnings of subsequent periods before payments are made to the common stockholders. Stock certificates must be signed by the authorized officials of the company, bear the corporate seal, and specify the number of shares and name of the owner. Ownership may be transferred by indorsement and delivery but the transfer is considered incomplete, as a rule, until properly recorded on the books of the company. Dividends are payable by order of the board of directors, or by the terms of the stock certificate.