Re: brooks stock certificate
Posted by:
Lance thomas (IP Logged)
Date: December 14, 2001 08:27PM
<HTML>Hi Jeff,
Thanks for the info. It would seem that our two examples of the stock certificates are approximately 16 months apart with yours numbered just under 6000 and mine numbered at just over 13000, with a spread of app. 7000 certificates being issued within an 18 month period.
As I stated in the previous thread, I have a keen interest in the collecting of old stock certificates (besides cars) with my collection reaching around 1500 peices, many are one of a kind and many have been framed as they adorn the walls of my home. Here in North America there is a strong interest\following of people who collect "script". Many of these stock certificates are quite valuable, with those related to the early auto industry being the most highly sought after and therefor, the most valuable.
I would not hesitate to say that you have in your collection a prime example of one of the most sought after and rare examples of a legal\financial document(as far as a collectors stand point in concerned.)
Not only is it auto related, it contains the magic word "Steam".
It would be very interesting to find out how many more are out there.
I have some good connections in the U.S., where regular auctions of old stock certificates are regularly held. I think I'm going to query some of the more knowledgable collectors stateside just to see what becomes of it.
There were obviously more than 13,000 certificates issued in total before the company folded in late 1927.
(Un)fortunatly it was a common practice to incincerate or destroy the share certificates once the purchaser had cashed in their shares for their full cash value. (This being more true of older examples as there are many stocks that still exist from the 1950's up to when they were made obsolete by the tradeing by electronic means (computer trading) in the late 1980's)
Your certificate is probably one that was never "canceled" or cashed in by its bearer hence it still exists.
If I haven't bored you to death already please read on...
As the value of a companies share rose with the daily stock market many shares would be issued, with each new share that was issued, a certifcate would be issued for the number of shares in that particular company (mine is for ten shares of Brooks Steam Motors).
Also as a result of the rising of the stock market share price for that company, many shares would be cashed in and a handsome profit was realized by the bearer (in theory).
99% of all paper stocks certificates were generally cashed in as soon as the bearer saw that a profit could be made (buy low sell high). This would generally be well within 90 days of issue. There were however, a small percentage of PEOPLE who would by a few shares here and a few shares there and would sit on them for ever hoping that by their age of retirment, there ship would come in. More often than not, it didn't. Truly the bulk of all
trading on the stock market is done by huge multi-nationals looking to diversify their assest. Corporations like Rueben-Rose and Merril Lynch buy hundreds of thousands of shares in companies like Ford and General Motors (for example) every day, only to sell them a week later for a profit.
The other 1% were those that were isussed to your average mom and dad that thought they might try to make a buck in the long haul.
What all this means is that these share certificates generally had a very short existance. Of course there are always exceptions to the rules hence the 2 that you and I have. I would imagine that there are others out there
in the hands of collectors or in the attics of the unknowing. But who knows.
For now we know of two.
An interesting side note is that, generally these stock certificates where printed by only a handful of printers. American Bank Note Corporation is one. As the name implies, they are the people that manufactered banknotes, i.e. - Money. Generally all stock certificates printed by them are of the same paper that an American $10 bill is made of. They also use the same high quality ink for stock certificates as that of money. One most reaize that when you purchased 10 shares of xyz company what you got in return was a certificate that represented a certain cash value of that company, hence being a legal document, they were made to the extreme high quality standards as money.
There was also a Canadian equivilant of the American Bank Note Company and indeed many countries have the facilities for printing there own form of banknotes.
I think if you look closely at your brooks steam motor certificate you should find somewhere (usually near the vignette or engraving or near the bottom of the certificate) that it bears the printers name in fine script.
Well, I suppose I am really not totally on topic and I've allowed myself to ramble on long enough so I had better cut it short here.
Jeff, Could I inquire as to how you came across this certificate and did you get it for a fair price. I found the one I have at a Seattle USA yard sale for the equivilant of about $10 US dollars.
I have seen other examples of auto related stock certificates being auctioned off for well in excess of $1000 US for very unique or rare examples. Generally an early Peerless or Ford certificate can fetch around $100 US (for early examples). The more common studebaker or General motors certificates dated in the 1960's or 70's trade for $5 to $10 US.
I have not recently seen any steam certificates traded but the more common steam certificates can fetch $250 -$500 US when they do pop up. I hope your example is proudly framed on your wall as I do think it is one of the more rare versions.
Cheerio,
Lance.....</HTML>