Vice-President, Swedish American Nat. Bank, Minneapolis

COMMITTEE

ST. PAUL, JULY 9th and 10th,

1907

и

REPORT OF THE NEGOTIABLE INSTRU

MENT LAW COMMITTEE.

Mr. J. A. Latta, Chairman.

At the Annual Convention of our Association last year the Committee on Resolutions recommended,

"That whereas twenty-four states have adopted the Negotiable Instrument Law, we recommend that this convention appoint a committee of three to investigate this law and report the result of such investigation to our next convention."

The recommendation was adopted and in accordance. therewith your committee beg leave to submit the following report:

While in a general way the origin of the law is understood it, perhaps, is desirable to review its history. In 1889 the American Bar Association appointed a standing committee on Uniform State Laws, consisting of one member from each state of the Union. In 1890 this committee reported that the state of New York had passed an Act authorizing the governor to appoint three commissioners for the promotion of uniformity of legislation in the United States, "and especially to consider whether it would be wise and

practicable for the state of New York to invite the other states of the Union to send representatives to a convention to draft uniform laws, to be submitted for the approval and adoption of the several states, and to devise and recommend such other course of action as shall best accomplish the purpose of this Act."

The Committee of the American Bar Association recommended the passage, by each State and by the Congress of the United States for the District of Columbia and the Territories, of an act similar to the New York Act. It was also urged that the members of the Association use their best endeavors in their respective states to secure the passage of an act similar to the one passed by the state of New York.

From 1891 up to the present time similar commissions have been appointed from different states so that now commissions exist in thirty-three states of the Union and the District of Columbia. These state commissioners have, ever since 1891, met in annual conference for the purpose of promoting uniformity of legislation throughout the United States particularly in the laws on commercial paper, marriage and divorce, descent and distribution of property, acknowledgement of deeds, execution and probate of wills. So that the subject matter has since that time been entirely in the hands of these state commissioners.

The initial step with reference to the enactment of a uniform law on commerical paper was taken by the Con gress of State Commissioners on Uniform Laws at its session in Detroit in August, 1895, when a resolution was adopted providing that the committee on Commercial Law be requested to procure a draft of a bill relating to commercial paper, based on the English statute on that subject (Bills of Exchange Act) and a copy of the same be sent to every commissioner on Uniform State Laws, and that the committee be authorized to expend $2,000.00 in the preparation, printing and mailing of such a bill. This committee employed John J. Crawford, Esq., of the New York bar, who had given special attention to the law relating to commercial paper, to prepare such a bill. This he did and this bill was carefully revised by the committee and copies thereof were sent to each commissioner.

MAY 14 1908

At the annual Conference of Commissioners in August, 1896, this bill was presented. Mr. Crawford was present and the entire Congress of State Commissioners considered the bill, section by section, during a three days' session of the conference. With certain modifications it was unanimously adopted. The commissioners of the different states were requested to have the same adopted by the legislature of their respective states. The first state to enact this bill into a law, now known as the Negotiable Instrument Law, was Connecticut, April 5th, 1897. During the same year the measure was enacted into a law in New York, Colorado and Florida. The example so wisely set has been followed by other states so that it is now in force or has become a law and will soon be in force in thirty states, two territories and the District of Columbia, namely: Arizona, Colorado, Connecticut, District of Columbia, Florida, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Missouri, Montana, Nebraska, New Mexico, New York, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

The following is from the report of the Judiciary Committee of the House of Representatives at Washington to that body, which was adopted as the report of the Judiciary Committee to the United States Senate, and on which report Congress passed this law for the District of Columbia.

"It is a careful revision and adaptation of the English. Bills of Exchange Act of 1882, which is now the law of every English speaking country in the world except our own. The production of a single mind, however learned and skilled, may well be regarded with distrust, but the product of scores of lawyers of Great Britain best qualified to know the law on the subject, tested by fourteen years of successful experience, and revised by commissioners from twenty states in this country, by the experts who had written on the topic, may surely inspire the confidence that the work is thoroughly done."

It may be safely said that there is not an important pro vision in the bill which is not supported by some well considered decision of an American court of high authority, or