SALMON P. CHASE (1808-1873)

Educated at Dartmouth College, admitted to the bar in 1830, prominent in anti-slavery conventions, elected Governor of Ohio in 1855, nominated for President, appointed Secretary of the Treasury in 1861. Under his management the National Banking Act was passed which is still in force in 1913. In 1864 he was appointed Chief Justice of the Supreme Court. He presided at the trial of Andrew Johnson, President of the United States. His term as Chief Justice covers the Reconstruction period of American history. Many questions of great importance were settled during this time.

277. Classes. Bailments of this class are divided as follows: Hiring of use; hiring of care and custody; hiring of labor; and hiring of carriage.

278. Hiring of Use. In this bailment the hirer secures the use of personal property of another for a definite time, and for

which he pays a consideration. The business of the liveryman is the best illustration.

1. Duty of Hirer. It is the duty of the hirer or bailee to confine the use of the thing to the terms of the contract, yet a slight deviation would not make him liable for damages where he was not negligent. If a saddle horse was hired, the hirer would not be allowed to use the animal for draying purposes. Incidental expenses must be borne by the hirer, extraordinary expenses by the letter, or bailor. The hirer is bound to use ordinary care.

2. Duty of Letter. It is the duty of the letter to deliver the property at the agreed time, and in no way is he to interfere with its use by the hirer. The letter must keep the thing in condition for use, and must not so dispose of his interest so as to affect the rights of the hirer.

279. Hiring of Care and Custody. This is one of the bailments of hire in which proper care and custody is offered on one side for a consideration. To properly conceive of the magnitude of such bailments one has but to recall the immense business of the warehouses in all cities for the storage of goods, and trust companies that offer safe deposit places for valuables.

1. Care. The chief thing in this bailment is the use or security of the thing bailed, and since a consideration is given for this, only ordinary care is required. The relationship, except in so far as the degree of care is involved, is practically the same as in deposit. In this chapter will be discussed some business occupations confined to this class of bailment.

2. Warehouseman. A warehouseman is one engaged in the business of providing safe storage for property. He has been defined to be “A person who receives goods and merchandise to be stored in his warehouse for hire." The business includes the storing of grain (where the same grain is to be returned to the bailor), household goods, and commodities generally. There is no obligation on the part of the warehouseman to accept such goods. But in some states public warehouses have been licensed,

and, as a consequence, they are obligated to accept all proper goods for safekeeping.

Exception. On analyzing the duties and obligations of a warehouseman who stores grain, it will be found that a true bailment does not exist. One of the main tests is that the identical goods shall be returned to the bailor. The storer of grain mixes all the grain of the same quality or grade together and is under obligations to give back an equal amount out of the common mass, as it would not be practicable to keep the grain in separate bins. The warehouseman does not intend to accept the title; he intends only to accept the possession and to consider the transaction merely in the light of a temporary safe keeping of the grain. Therefore, taking the intent of parties into consideration, the courts have wisely concluded to interpret the relationship to be that of bailment and not of sale. Likewise, if a farmer delivers grain to a miller and later is to receive a proportionate quantity of flour, the relationship during this period is that of bailment.

4. Wharfingers. A wharfinger is a person who keeps a wharf for the purpose of receiving and shipping merchandise. His duties and liabilities are similar to those of the warehouseman. His responsibility begins when the goods are delivered to him on the wharf and he has expressly or impliedly received them. It ends when he has delivered them under similar conditions.

5. Safe Deposit Companies. Safe deposit companies are organized for the purpose of offering safe-keeping places for valuables; that is, they offer for rent a vault or box, agreeing to keep a good and adequate guard over it. They do not have the actual, but merely constructive, possession of the articles. It is generally held that the liability of a safe deposit company is similar to that of a warehouseman.

6. Agisters. An agister is one who takes care of cattle for compensation. The degree of care required of him does not materially differ from that of other bailees for hire. He must exercise ordinary care, and is liable for all losses occasioned by the absence of that care. His grounds must be properly enclosed, and it is negligence for the agister or his servants to fail to properly close gates.

280. Other Bailments. An agent may be a bailee for hire, and must take ordinary care; he is not liable for loss by fire,

theft, or accident, unless coupled with his own negligence. Commission merchants are held as bailees while goods are in their possession. They have a right to sell the goods but not to pledge them. They must act with reasonable diligence and in good faith, and must follow all reasonable instructions.

281. Hiring of Labor. The primary duty of the bailee in this bailment is to perform the services agreed upon in good faith. This bailment is closely allied to that of commission, except that in the one a consideration is given for the service rendered. To this class belong jewelers, tailors, and, in fact, anyone to whom goods may be delivered for some specific work to be performed upon them and then returned.

1. Care and Skill. The bailee must use ordinary care in the safe keeping of the property, and must exercise reasonable skill in the performance of his duty.

282. Special Property. In all bailments for hire, the bailee has a special property in the thing bailed, to the extent of excluding the bailor while the bailment is being performed. This is so in order that he may earn the agreed consideration. As a further protection, he is given a lien or right to maintain this possession until his charges have been paid. The special property interest is of such value that in order to fully protect himself Under the policy so

the bailee may have the property insured. secured he may collect the full value of the property insured. If the amount so recovered is more than the value of his interest, he holds the excess in trust for the bailor.

283. Compensation. The bailee is entitled to compensation for work performed, even though the thing bailed is subsequently destroyed through no fault of the bailee. The compensation is subject to the contract of the parties. If the services have been but partly performed at the time of the destruction of the thing bailed, the bailee is entitled to a proportionate part of the contract price for work performed and for any material used in the work. If the agreement is for the whole job when completed, and a loss occurs, the bailor must lose the thing