tions for the conduct of his business, which his customers are bound to observe. But even if they are non-paying passengers, he cannot rid himself of his duty to care for their safety.

he

Thus, he may make an extra charge for fares paid on the cars; may refuse to carry disorderly or obnoxious passengers, or any who are suffering from an infectious disease; he may put off a passenger who refuses to pay his fare, but not in a place where the passenger's life is endangered; he may issue limited tickets for a continuous passage, or mileage or commutation tickets which are not transferable.

Baggage. Every passenger, except in the case of local carriers such as horsecars or omnibuses, has the privilege of carrying his personal baggage. The carrier is a common carrier of freight so far as the baggage is concerned, his charge being included in the price of the ticket. By baggage is meant such articles of necessity and convenience as travellers usually require on a journey.

In cases where only passengers are carried, and often too in passenger cars and on board steamers, hand baggage is kept under the immediate control of its owner; and it is sometimes considered that the carrier is not responsible for it, though the point is at present unsettled.

Baggage does not strictly include sample trunks, furniture, or articles of value in trunks or valises, to be used at the journey's end only. But it would include sufficient money for the journey, and articles, even of great value, which are used by persons of the passenger's station in life.

The carrier may limit his exceptional liability as a common carrier for the baggage. It is common to hold himself only responsible for baggage to the value of one hundred or one hundred and fifty dollars. He may also make an extra charge for baggage over a certain weight. But these special stipulations must be brought fairly to the passenger's notice; for instance, by printing them either on the ticket or on the check. Even with these stipulations, he must use the ordinary care required of every bailee for hire. In any event he is liable for the culpable negligence of his employees.

CHAPTER VI.- NEGOTIABLE PAPER.

Negotiable Paper is the name given to a certain class of written contracts which is governed by rules of law peculiar to itself. Bills of exchange and promissory notes are the most important of this class of contracts. They are of ancient origin, and the rules of law governing them are the outgrowth of the customs of merchants.

Bill of Exchange.-A Bill of Exchange is an unconditional written order by one person to another, or even to himself, to pay a certain sum of money to a certain person, or to his order, or to bearer. For example:

$1,000.

Boston, March 1, 1889.

Three months after date, pay to the order of John Bowling, One Thousand Dollars,

value received.

To

CHARLES HARRISON,
Philadelphia, Pa

}

Samuel Hathaway.

Here Hathaway is the drawer, Harrison the drawee and Bowling the payee. When the drawee agrees to pay the order, he be

comes the acceptor.

A bill of exchange is designed to secure the payment of a dis-. tant debt without the transmission of money, by exchanging the debt owed by the drawer to the payee for a debt owed by the drawee to the drawer.

Inland Bill.- An Inland Bill is one drawn and payable in the same state or country.

Foreign Bill.-A Foreign Bill is one either drawn or payable in a foreign country; and each state is foreign to every other state.

Foreign bills, especially if they are to be sent to another country, are usually drawn in two or three parts. In a set of this kind, the parts are exactly alike, except that each refers to the other, or the other two. The two or three parts, however, make but one bill, the only object of drawing them in this way being to avoid a possible loss of the bill, by sending the parts at different times or by different

routes.

Draft. Draft is merely a business man's name for a bill of exchange. Bank drafts are often used in paying distant debts. They are drawn usually on a bank in a large money centre, where the drawing bank has money on deposit; and can be cashed by the payee in any city or town.

Check. A Check is a bill of exchange drawn by a customer on a bank or bankers, and is payable on demand.

Promissory Note. A Promissory Note is an unconditional written promise to pay a certain sum of money to a certain person or to his order, or to bearer. For example:

$500.

New York, Mar. 1, 1889.

Thirty days after date, for value received, I promise to pay to the order of

William Johnson, Five Hundred Dollars.

Richard Wade.

Here Wade is the maker and Johnson the payee.

In order for

the payee to transfer the above promissory note or a bill of exchange, he must endorse it by writing his name across the back of the paper.

When a person writes his name upon the back of a bill or note, to convey his title to it, he becomes an endorser, and the one to whom he transfers his title is his endorsee.

After its first endorsement a promissory note corresponds to an accepted bill of exchange, for the maker stands in almost the same

position as the acceptor, the first endorser as the drawer, and the first endorsee as the payee of the bill.

A bill or note may be payable at a definite time, as in so many days or months after date, or on demand, or on demand after a certain time, or at sight, or after sight.

Accommodation Paper. It often happens that a person puts his name on a bill or note without receiving any consideration for so doing, but as an accommodation for one of the parties to it. For instance, a maker might sign for the payee's accommodation, or a drawee accept for the drawer's accommodation, or a payee endorse for a maker's accommodation, intending thereby to give the paper credit, and thus to enable the accommodated party to negotiate it. If the party giving the accommodation is obliged to pay the bill or note, he can always recover from the accommodated party the amount so paid.

Other paper, having no accommodation party on it, is commonly spoken of as business paper.

How Bills and Notes Differ from other Contracts. There are three peculiarities which distinguish bills and notes from ordinary written contracts, -(1) negotiability, (2) the absence of any statement of consideration for the order or promise, and (3) the days of grace allowed to the acceptor or promisor.

Negotiability. "Negotiable" means that a bill or note can pass from one person to another, so as to give such an ownership to the holder, that he can collect the amount of the order or the promise for himself, or bring a suit upon the instrument in his own name. Ordinary contracts can be assigned merely; and the assignee must sue in the name of the assignor.

A bill or note is made negotiable by making it payable to the payee "or order, "to order of" the payee, or simply "to bearer.” A seal destroys the negotiability of a bill or note; but a bond or its coupons, though sealed, may be negotiable.

Consideration. A written contract usually must have a statement of the consideration for the promise or the agreement, or at least of the fact that there was some consideration. But a bill or note need not have any such statement. Even the words, "for value received," though used ordinarily, are not necessary.

Days of Grace. Generally contracts that provide a fixed time for their fulfillment are broken if not fulfilled at the exact time. But on all bills and notes, except when made payable on demand, three days of grace are allowed in addition to the period of time mentioned in the instrument itself. Even when payable "at sight" or "after sight" days of grace are allowed. And if the instrument is

payable in instalments, even in the case of instalments of interest probably, days of grace are given on each instalment. But no days of grace are allowed if the instrument is so expressed.

Interest is always reckoned for the days of grace.

If the third day of grace is a Sunday or a holiday, the instrument becomes payable on the second day; or, if that day also is a holiday or a Sunday, then the first day is the day of its maturity, or in a few states four days of grace are allowed in such a case.

As to the time when suit can be begun on an instrument that is not paid on the last day of grace, there are several different rules. In Massachusetts, for instance, if demand was made and payment refused during business hours of the last day of grace, suit could be brought immediately; while in New York the suit could not be begun until after business hours at least, and in Pennsylvania not until the next day. It seems the most reasonable theory that the acceptor of the bill or the maker of the note should be entitled to the whole of the last day of grace, or at least to all of that business day, in which to pay; and that, therefore, a suit should not be begun against him until the next day.

If a bill or note is expressed as payable in one or more months, it matures on the third day after the corresponding date of the new month. Two months, therefore, from January 15th is March 15th, which, with the days of grace, becomes March 18th. If there is no corresponding date in the new month, as for instance, one month from January 31st, the last day of the month is to be taken, February 28th, or in leap year, 29th, which, with the three days of grace, becomes March 3d.

What a Bill or Note Must Contain. - No fixed form is necessary for either a bill or a note; but certain things must be true of it in order that it shall be a good negotiable instrument.

(1) A bill must have a clear order, and a note a clear promise, to pay. It follows, therefore, that a simple memorandum of a debt,