James v. Meriwether Graham Oliver Co.

Henry James, a negro farmer living’ in Arkansas, shipped "his cotton to Meriwether Graham Oliver Company, cotton factors in Memphis, to he sold by them and to have the proceeds of the sale remitted to him. He was not indebted to the factors. When the cotton reached Memphis, it was deposited in a warehouse without the knowledge of James and negotiable warehouse receipts issued for it. These warehouse receipts were pledged by the factors to the Bank of Commerce & Trust Company to secure a pre-existing indebtedness of the factors to that bank. The factors failed and the bank sold the cotton…