place said building in repair and proper sanitary conditions, it is necessary that an appropriation be made for said pur pose; therefore, be it Resolved, That the Governor be requested to submit the matter of making a sufficient appropriation for the clean ing and renovation of said Capitol, in this called session of the Thirty-third Legislature, so that same may be one by the time the Thirty-fourth Legislature convenes in regular session. The resolution was read second time. adopted? Mr. Templeton offered the following amendment to the resolution: Amend by inserting at end of the resolution: "To appropriate money for insuring the Capitol building." Signed-Templeton, Fuller. The amendment was adopted. The resolution as amended adopted. MOTION TO RECESS. tablish a State warehouse system for the storing of cotton in bales, wheat in elevators, and other products of industry; prescribing the terms and conditions and rules and regulations under which such officer shall establish said warehouse system, conferring certain authority upon him with reference thereto and conferring authority upon incorporated cities and towns to contribute to the cost and expense of such system in their respective locations and conferring authority upon private corporations to make contributions for such purpose; authorizing the Commissioner to appoint managers at each local warehouse, fixing the bond and defining the duties of such managers; prescribing the terms and conditions of warehouse receipts to be issued by the managers of warehouses established by the Commissioner of Insurance and Banking, and prescribwas ing when and under what conditions such receipts may be issued and when duplicates may be issued; defining negotiable and non-negotiable receipts; prescribing when property placed in State warehouses shall be delivered upon the surrender of receipts, and all terms and conditions, rules and regulations governing State warehouses established by the Commissioner of Insurance and Banking; defining the liability of the State as a public warehouseman and permitting suits to be brought against it as such; prescribing the venue thereof; prescribing that the Commissioner of Insurance and Banking shall fix the charges for storage. and authorizing the Commissioner of Insurance and Banking to have all products stored in State warehouses nisured; defining what character of building Mr. Templeton moved that the House recess to 2 o'clock p. m. today, and the motion was lost. APPOINTMENT ANNOUNCED. The Speaker announced the appointment of Miss L. Gunn as stenographer. HOUSE BILL NO. 1 ON SECOND READING. The Speaker laid before the House, on its second reading and passage to engrossment, serve House bill No. 1, A bill to be entitled "An Act to preserve the credit of the citizens of the State of Texas generally and to prevent the sacrifice of a large may be used for warepart of the products of its industry; to house and storage purposes; providing assist in maintaining the solvency of the for the appointment of warehouse exbanks chartered by the State and to pre-aminers by the Commissioner of Insurintact the depositors' guaranty ance and Banking, prescribing their dufund; to maintain the integrity of the ties, conferring authority upon the actual values of the products of indus- Commissioner of Insurance and Banking try during the present period of finan- to have State warehouses examined by cial disturbances, to the end that the State bank examiners; providing how taxes may be collected and taxable values the warehouseman's lien provided for maintained; to furnish a certain, safe, in the measure may be satisfied; stating authoritative and liquid security, to en- when the Commissioner of Insurance able the people of the State generally and Banking shall cease to receive cotto obtain their ratable and proper dis- ton in storage under the act; declaring tribution of currency which may be is that all public cotton gins are charged sued by the national government, and with the public use, and levying an ocgenerally to preserve the credit and in-cupation tax of 10 cents per bale dustrial financial integrity of the State; against each public cotton ginner in the authorizing and requiring the Commis- state; creating special fund to be used sioner of Insurance and Banking to es-only in the administration of this law; defining the standard of weights and measures and classification to govern the Commissioner in administering this act; creating certain penal offenses to secure the enforcement of this act, and prescribing penalties therefor; making an appropriation to carry out the provisions of this act, and declaring an emergency." The bill was read second time. Question-Shall the bill be passed to engrossment? Mr. Calvin offered the following (committee) amendment to the bill: Amend H. B. No. 1 by striking out all after the enacting clause, and insert in lieu thereof the following: Section 1. It is declared that this act is an emergency measure, made necessary by the condition brought about by the wars on the continent of Eu rope. The purpose of this act is to preserve the credit of the citizens generally of the State; prevent the sacrifice of a large part of the products of its industry now impending and due to the calamities and exigencies of war; to assist in maintaining the solvency of the banks chartered by the State of Texas, and preserve intact the depositors' guaranty fund; to maintain the integrity of the actual values of the products of industry during the present period of financial disturbance to the end that taxes may be collected and taxable values maintained; to furnish a certain, safe, authoritative and liquid security, to enable the people of the State generally to obtain their ratable and proper distribution of currency issued or authorized to be issued by the national govern ment, or other relief issues of money or currency made by the national govern ment or authorized to be made by it; and generally to preserve the credit and industrial and financial integrity of the State. clerks, stenographers, experts, managers, examiners and such other help as may be necessary in carrying out the provisions of this measure. All those employed by the Commissioner for any purpose shall receive such salary and compensation as may be fixed by him, except as herein otherwise provided, and, in addition thereto, shall, when traveling on official business receive their actual necessary traveling expenses. Sec. 3. It shall be the duty of the State banks chartered under the law of this State to render the Commissioner such reasonable assistance as he may request in putting into effect, and in administering this act. Sec. 4. As soon as this act goes into effect the Commissioner acting as trustee for the State shall establish by renting or leasing in each town or city in this State, whether incorporated or unincorporated, where the demand therefor is reasonably sufficient to justify the outof cotton in the bale, and shall store the lay, a State warehouse for the storage same and issue receipts therefor in the manner herein provided. Before establishing any warehouse hereunder in any incorporated city or town, the Commissioner may, in his discretion, require such city or town to agree to pay and to pay all or any part of the cost of establishing and operating such warehouse; and authority is hereby conferred upon all incorporated cities and towns and villages and any county of this State to appropriate and use as much of their general funds as may be necessary for such purpose. The Commissioner may also, in his discretion, before establishing any warehouse hereunder at any place require the citizens of such place, represented by some responsible body or committee, to agree to pay and to pay all or any part of the cost of establishing and operating such warehouse, and authority is hereby conSec. 2. This act shall be administered ferred upon all private corporations, by the Commissioner of Insurance and chartered under the laws of the State of Banking. To aid him in his work he Texas, to contribute so much of their is empowered to appoint a chief clerk funds as may be necessary for such purof the warehouse division of his depart- pose, in aiding the citizens of any parment, who shall perform the duties usnticular place to obtain in the manner ally incident to that character of posi- suggested the establishment and maintetion and such other duties as may benance of a warehouse under this act. assigned him by the Commissioner. Sec. 5. Each warehouse shall be in Such chief clerk shall be paid the sum of two hundred dollars ($200) month for the time that he is employed by said Commissioner. The Commissioner of Insurance and Banking shall also have authority to employ such per charge of a manager to be appointed by the Commissioner, who shall be competent to keep the books required to be kept and to grade and classify cotton. The manager shall give bond payable to the State at Austin, Texas, in the sum of not less than two thousand five hundred ($2500) dollars and not more than ten thousand ($10,000) dollars to be fixed by the Commissioner of Insurance and Banking, graduated according to the capacity of the warehouse or warehouses in charge of said manager. There shall be but one manager in each town, city or village, regardless of the fact that the Commissioner may establish any number of warehouses in each such town, city or village, provided that in appointing said managers the Commissioner of Banking and Insurance shall give preference to persons recommended by the local warehouse association if said persons are found competent to perform such duties. The bond of the manager shall be conditioned for the faithful and competent discharge of his duties under this act, and shall be in form drawn by the Attorney General. The manager of warehouses in each such town, city or village shall receive such salary as may be fixed by the Commissioner and shall employ such help as may be necessary in the discretion of the Commissioner. ord of such receipts shall be kept in a well bound book, which shall be at all reasonable hours open to examination by any interested person. No two receipts bearing the same number shall be issued from the same warehouse during the same year, nor shall any duplicate receipts be issued, except in the case of a lost or destroyed receipt, in which case a new receipt shall bear the same date and number as the original and shall be plainly marked on its face "duplicate." A receipt in which it is stated that the goods will be delivered to the recipient or to any other specified person is a non-negotia ble receipt. A non-negotiable receipt shall have plainly placed upon its face by the manager issuing it "non-negotiable" or "not negotiable." A receipt in which it is stated that the goods will be delivered to the bearer or to the order of any person named in such receipt is a negotiable receipt. In addition to other provisions each receipt shall have a blank form on the back thereof to be filled in and signed by the owner of the cotton, showing whether such cotton is free from encumbrance or liens of any kind. If there is any encumbrance or liens of any kind on said cotton at the time of its storage the nature and amount of the same shall be clearly set out, and it is made the duty of the manager issuing the receipt to have said blank filled in and signed by the owner of the cotton before issuasing a negotiable receipt for same; provided, if there is no encumbrance or lien, that fact shall be shown in the statement; provided, however, such statement may not be made if a non-negotiable receipt is desired. Each manager shall have a certificate signed by the Commissioner of Insurance and Banking, showing his appointment as manager, which he shall keep displayed at his office at the warehouse. Sec. 6. Warehouses established under this act shall be conducted under rules fixed by the Commissioner of Insurance and Banking in order to effectively carry out its provisions, and it shall be the duty of the Commissioner, as soon may be after organizing this division of his department, to promulgate rules and regulations and forms by which the provision of this law may be carried out. Sec. 7. Each warehouse receipt issued hereunder shall bear the date of issuance and shall state upon its face the name and number of the warehouse and its location, the description, quantity, number and marks of the cotton there stored. and shall state the class and weight of same, and the date on which it was originally received in the warehouse, and that it is deliverable upon the return of the receipt properly endorsed by the person to whose order it was issued and upon payment of all charges for storage and insurance, which charges shall be stated on the face of the receipt to secure all of which the State shall have a warehouseman's lien. All such receipts shall be numbered consecutively in the order of their is suance and shall state whether the cotton therein described is exposed to the weather or under shelter. A correct rec If the person holding a non-negotiable receipt shall desire to obtain a negotiable receipt in lieu thereof he shall return said non-negotiable receipt to the warehouse issuing the same, and thereupon shall comply in every respect with the provisions of this act relating to negotiable receipts, upon compliance with which a negotiable receipt shall be issued to him in lieu of said non-negotiable receipt and said non-negotiable receipt shall thereupon be canceled and the word "canceled" plainly marked or stamped in ink across the face thereof. No warehouse receipt shall be issued except on the actual previous delivery of the goods in the warehouse or on the premises and under the control of the manager thereof. A duplicate shall not be issued until the person applying therefor gives a bond equal to the value of the goods for which the same is issued, which bond shall be given under such rules and regulations as the Commissioner may prescribe. Sec. 8. Upon the presentation and return to the warehouse of any public warehouse receipt issued by its manager and properly endorsed, and the tender of all proper warehouse charges upon the property represented by it, such property shall be delivered immediately to the holder of such receipt, but the manager of such warehouse who shall issue a receipt for cotton shall not, under any circumstances or upon any order or guaranty, deliver the property upon which receipts have been issued until such receipts have been delivered and canceled, except in case of lost receipts; and upon any default in strict compliance with the terms of this article the manager shall be held liable not only to the State on his bond but to the lawful holder of the receipt for the full value of the property therein described; and shall further be liable to the special penalty herein provided. Upon delivery of the goods in a ware house upon any receipt such receipt shall be plainly marked or stamped in ink across the face thereof with the word "canceled," together with the name of the manager canceling the same, and shall thereafter be void and shall not again be put into circulation, but shall be filed for further inspection. Sec. 9. The liability of the State shall be that of a public warehouseman and suits may be brought against the State for any liability as such, either at Austin, in Travis county, Texas, or in the county in which is located the warehouse where the cause of action accrued; provided, however, that the weights, classes and grades of cotton stored in warehouses under this act are guaranteed by the State only in favor of those who may loan money on warehouse receipts issued hereunder as collateral, or those who hold evidence of debt originally secured by such warehouse receipts as collateral. And provided further that the State shall not be responsible for such fluctuations in weight as represents ordinary climatic conditions. Service in all suits may be had upon the Commissioner of Insurance and Banking or upon the local manager of the warehouse at which the cause of action arose. But in all instances before suit may be brought and maintained a statement of the claims, properly sworn to, giving the amount thereof, and the manner in Sec. 10. A negotiable receipt issued against cotton stored in a warehouse under this act shall be negotiable and transferable by endorsement in blank or by special endorsement and delivery in the same manner and to the same extent as bills of exchange and promissory notes now are, without any other formality; and the transferee or holder of such warehouse receipt shall be considered and neld as an actual and exclusive owner to all intents and purposes of the property therein described, subject only to the lien and privilege of the warehouse for storage, insurance and other warehouse charges; provided, however, that all such warehouse receipts that shall have the words non-negotiable plainly marked or stamped on the face thereof shall be exempted from the provisions of this section. The manager of each warehouse shall keep a carbon copy of each receipt, whether negotiable or non-negotiable, issued by him and which shall have printed in large letters across the face of the same "Carbon Copy.” bon copy shall be of no value for any purpose, except as part of the records of the office of the manager issuing the same. Such car Sec. 11. All charges for storage shall be fixed by the Commissioner and need not be necessarily the same at all places, but shall be fixed by him, taking into consideration the amount of cotton, local conditions and necessities, the object in view being to collect a sufficient amount at each local warehouse to pay for its operation, but at the same time make the rates reasonable and just. The Commissioner shall in his rules and regulations prescribe when insurance, warehouse charges and other charges shall be due and payable. Sec. 12. All cotton placed in warehouses shall be insured by the Commissioner, either by individual policies or by blanket policies covering any and all cotton in any State warehouse, the Insurance and Banking. Such manager shall also make such other reports as may be required by the Commissioner. All reports required by the Commissioner shall contain such other information as may be requested by the Commissioner. Sec. 16. The Commissioner of Insur method and manner of securing the insurance to be left to the judgment, discretion and experience of the Commissioner. In the event of any loss or damage the Commissioner shall collect the insurance due and pay the same over ratably and equitably to those lawfully entitled to the same. All insurance and Banking shall appoint a suffiance policies shall be issued in the name of the Commissioner of Insurance and Banking. cient number of warehouse examiners to visit each local warehouse from time to time and carefully examine the records kept by the managers and the contents of said warehouses, and make such re All cotton placed in a warehouse must be insured and the premiums shall be collected from the owner of the cot-ports to the Commissioner of Insurance ton by the Commissioner and the State shall have the warehouseman's lien for the insurance on the cotton, the same as it has for storage charges. Sec. 13. Cotton shall not be stored in wooden buildings unless such buildings are equipped with fire protection to be approved by the Commissioner, and none shall be stored in anything but waterproof buildings, so that the entire bale shall be protected from the weather. The Commissioner shall equip all places of storage with such practical fire protection as the location and necessities of the warehouse will permit and in all instances every practical safeguard shall be taken, and in the rules and regulations to be formed by the Commissioner governing his managers he shall set forth the general details of the system of fire protection and shall enforce the same; to this end he shall have the right to call to his assistance all the experts, engineers and employes of the State Fire Insurance Commission. and Banking relative thereto and relative to all other matters that may be required and specified by the Commissioner concerning such warehouses. Such examiners shall visit each warehouse at least twice during each cotton season and at such other times as may be designated by the Commissioner of Insurance and Banking. Sec. 17. Every warehouse examiner appointed by the Commissioner shall be a competent cotton classer, and before entering upon the duties of his office shall take and file in the office of the Commissioner the constitutional oath, and in addition thereto shall take an oath to make fair and impartial examinations and that he will not accept as presents or emoluments any pay, directly or indirectly, for the discharge of any act in the line of his duty other than the remuneration accorded and fixed by law; and that he will not reveal the him or of any storage account, examined condition of any warehouse examined by by him or give any information secured in the course of examination to any one Sec. 14. All warehouse receipt books shall be designated by the Commissioner except to the Governor, the Commissioner and the Attorney General; and except and printed under his direction and be when required to do so in the enforcefurnished each warehouse by him, eachment of the law upon the order of a receipt being numbered and accounted district or county judge. for by the manager under such rules as the Commissioner may provide. Each receipt shall contain the lithographed or engraved signature of the Commissioner of Insurance and Banking and the lithographed or engraved seal of his department, but the same shall be signed with pen and ink by the local manager. Sec. 15. All local managers shall make reports as required to the Commissioner of Insurance and Banking, showing the amount, grade, character, classification and weight of cotton received and delivered by him and from whom received and to whom delivered; said reports to be in such form as may be designated by the Commissioner of No such examiner shall be appointed who is at the time an officer or stock holder in any warehouse company or warehouse corporation or a member of any firm or an officer of any corporation engaged in the purchase or sale of cotton or cotton products. Each such examiner shall enter into a bond payable to the State in the sum of ten thousand dollars ($10,000) to be approved by the Commissioner and deposited in this office, conditioned that he will faithfully perform his duties as such examiner. As full compensation for the performance of the duties of examiner each person so appointed shall be entitled to receive a salary of one hundred and fifty |