February 08, 2010

Railroad and Trains magazines database now online


Several stock and bond collectors have told me they collect railroad magazines. About five years ago, I began compiling a database of information about Railroad Magazine and Trains Magazine, the two longest-running and most collectible consumer periodicals on railroading. I just finished adding that information to my web site at Railroad magazines. (Or click on the menubar at Home > Other interests.)
Frank Munsey started Railroad Man's Magazine in 1906 as an adjunct to his successful Argosy Magazine. Railroad Man's Magazine was a male-oriented "dime novel" (or novelette) monthly that told stories of high adventures and travails in railroading. Railroading had been a popular subject for story magazines since the late 1850s and it is somewhat curious that it took so long to start a dedicated publication on the subject.

Munsey's magazine was moderately successful and survived in monthly form for about thirteen years. Starting in December, 1918, the publisher tried a weekly schedule for the magazine and then tried a combination called Argosy and Railroad Man's Magazine. The experiment does not seem to have worked and by May, 1919, the magazine reverted to independent form and monthly issuance.

Based on the numbers of issues I've encountered, Railroad Man's Magazine must have had modest circulation. Nonetheless, it survived and ultimately changed its name to Railroad Stories in February, 1932. Although the content did not change much, the covers of Railroad Stories were much more intriguing and colorful than its predecessor. In fact, its covers were very much in the style of detective and true crime novels of the time. This move must have kicked sales, because many more issues of Railroad Stories survive.

Like coal mining and other heavy industries, railroading had become much safer and more commoditized throughout the 1920s and 1930s. Fictional stories of train robberies, bridge collapses and fateful crashes became increasingly unrealistic and the desire for fiction gave way to a growing demand for factual articles about railroading. The magazine obviously recognized the trend and changed its name to Railroad Magazine only five years later (September, 1937). While fictional stories and poetry continued to appear for many years, content eventually switched to real history and factual reportage by the 1940s.

The demand for real facts was not lost on A.C. Kalmbach who had made a living reporting on and photographing real railroads. Kalmbach started Trains Magazine in late 1940 and even went so far as to make the cut size of his monthly periodical almost identical to his long-running competitor.

Kalmbach's focus was strictly professional and factual. He chose coated paper over pulp and thereby gained the ability to offer higher quality photographs than Railroad Magazine. The heavy reliance on photographs and costly paper meant Trains Magazine had a higher sticker price – 25¢ versus 15¢. Trains had half the pages of Railroad which meant its actual square-inch cost was almost four times higher.

While obviously covering the same subject, Trains Magazine and Railroad Magazine had noticeably different audiences. The differences are most noticeable in the designs of their covers and their advertising content.

Popular interest magazines of all descriptions began using photographs on their covers by the mid- to late 1930s. Except for a couple single-issue experiments (Nov, 1939 and Jun, 1954), Railroad Magazine relied on custom art work for its covers until 1955. Many of its covers (especially in 1939) were purposely heroic and inspirational. Several covers drew on an earlier Art Deco styles (Apr, 1950) and a few were excellent derivitives of Frederic Remington's "nocturnes" (Aug, 1940, Mar, 1941, Nov, 1948) popularized four decades earlier.

By comparison, Trains Magazines relied on real black and white photographs from its very first issue in 1940. Trains Magazine's photos, both inside and out, often bordered on "artsy," very much in the style of industrial-subject photos that appeared in Life Magazine of the era (Nov, 1940, Dec, 1940, Dec, 1954.) While there may be more, I can only find one dedicated artwork cover (Nov , 1947). The least attractive covers appeared when Trains Magazine experimented with strong graphics on its covers (May, 1954, Jul, 1955 and the abyssmally bad cover of Jul, 1959)

The two magazines also displayed obvious differences in advertising content. From its inaugural issue, Railroad Magazine had always played to a popular consumer audience. Ads included the same ones that readers could find in practically any magazine: cigarettes, Mason shoes, promos for book collections of the classics, fishing lures, the Rosicrucians and get-rich-quick schemes. Trains Magazines tried to appeal to a more world-wise market and featured travel-oriented and image advertising by all the major railroads. The professional railroading aspect was played up with ads about freight movement, reliable wheel bearings, strong diesel power and dependable trucks.

While there are several other railroad magazines with collector interest, I have only collected information about these two classic magazines. I have recorded a few thousand sales of these magazines and show high, low and average prices when possible. I currently offer images of about 270 Railroad Magazine covers and roughly 180 Trains Magazine covers. That means I have a lot of room for improvement. I solicit any new images my readers may be able to supply. If someone might like to contribute information about other magazines (real railroads only), contact me and we'll discuss adding new pages.

Magazines dated after 1980 are usually worth much less than a dollar each, so that has always been my cut-off date. However, if any of you can supply images of Railroad or Trains magazine covers dated after that time, I will be glad to extend my date range.

January 12, 2010

New Clinton Hollins catalogs


Those of you who buy exclusively through eBay really need to receive Clinton Hollins' catalogs.

You see, Clinton has such a monstrous selection of certificates that he often sells certificates below prices realized on eBay. In fact, many of the certificates you see for sale on eBay have moved through Clinton's hands at one time or another.

As I've mentioned before in this blog, Clinton's catalogs are no-frills – no fancy photos, no slick paper, no insistent promos. Just simple descriptions and great prices. Each catalog is 32 pages on 5½ x 8½ white paper. Clinton normally offers special prices for those collectors who like to buy multiple color varaties. He also offers great prices for small dealers wanting to buy multiples for inventory. Make sure to check out his "Bargain Lots" catalogs, as well as his "Railroad" specialty issues.

You can see much of Clinton Hollins' inventory online at ClintonHollins.com. Contact him at

Clinton Hollins
PO Box 2711
Springfield, VA 22152-2711

January 06, 2010

New certificate rarity system now online


After several years of development, I have just rolled out a new rarity system for railroad stocks and bonds. You may see it in action by searching for any certificate in your collection.

After many conversations with dealers, collectors and authors, I decided to use a 7-point system arrayed from most common to most rare.

The system is arranged like this:
R1 = likely to appear more than 10 times per year
R2 = likely to appear 4 to 10 times per year
R3 = likely to appear 1 to 4 times per year
R4 = likely to appear once every 1 to 3 years
R5 = likely to appear once every 3 to 5 years
R6 = likely to appear once every 5 to 10 years
R7 = likely to appear less than once every 10 years


R? = Rarity unknown. I reserve this designation for certificates priced under $50 which are suspected of being substantially scarcer than their prices would otherwise indicate. For instance, I would use this designation in the case where a certificate has been seen only once or twice in 30 years, but it sold for only $15. Why so cheap? Is there an unreported hoard somewhere? Was the $15 sales price a very lucky fluke for some collector?

The system does not measure populations. We can NEVER know the numbers of certificates that exist. Instead, the system measures historic appearances over the last thirty years. It gives you hints on rarity by estimating how often certificates come up for sale. The system is database-driven, so rarity estimates represent appearances as recently as the last database upload. There are currently about 980,000 appearance in the database.

See http://www.coxrail.com/Rarity.htm for a further discussion of the system and its accepted shortcomings.

December 29, 2009

Dec. 2009 issue of Scripophily mailed to members


The latest full-color issue of Scripophily arrived a couple days ago. (See my announcement about the August issue for more information on supporting the International Bond and Share Society.) As before, I ask you to join me in supporting this organization which is now almost 42 years old.

Major articles to be found in this issue are:

  • Mexican Gold Bond Explosion
  • The Belga Demystified
  • The Thams Highway
  • United We Stand, Divided We Fall (tobacco war)
  • Adolph Had a Tunnel (Sutro Tunnel)
  • The Santa Fe Saga, part 2
As always, there are numerous shorter articles including reviews of worldwide auctions as well as my latest article in Cox's Corner.

Perhaps the most intriguing aspect of this issue is the report of a Republic of Mexico £100 bond that Belgian dealer Mario Boone sold on eBay for a staggering $60,100! Why ANYONE would pay that amount is unknown. It is possible that the buyer and two other bidders all saw something that everyone else missed. Boone was unable to spot any significance with the autographs.

But that's not all. Archives International sold a similar bond (£250 denomination) on Dec 2. for an even more staggering $80,100!, also on eBay. What's up?

The article discusses the possibilities for such outlandish bids. The most reasonable suggestion involves the outstandingly mis-informed possibility that the buyers are somehow expecting to be able to redeem them for gold. While that is just plain silly (see my discussion of gold bond scams and hypes), it may also involve taxation through a series of convoluted twists.

Read all about it in the lastest Scripophily.


December 09, 2009

Prices on the Rise?


I update my online database twice per month. Before uploading the database, I run a series of “cleanup" procedures. One cleanup step makes sure I display the most current record-high and record-low prices.

Only a few new record-high prices have appeared in recent years. In fact, there has been a steady procession of record-low or near-record-low prices ever since I started recording eBay sales.

My last database update was December 1 and the situation was different. This time, the numbers of new record-low and new record-high prices were nearly identical.

At first, you might think dealers would applaud this unforeseen uptick in prices. But not so fast!

On closer examination, I noticed that all new record-high prices occurred in Germany and almost all new record-low prices occurred in the U.S. Not meaning to sound alarmist, this is not a good trend for either American collectors or dealers.

Heavy selling by amateurs on eBay continues to depress prices in the U.S. EBay has effectively trained collectors to expect bargain basement low prices, even for scarce and rarely-seen certificates. Yet even with online auction prices at fifteen- and twenty-year lows, 50% to 60% of eBay certificates still go unsold. Never mind that prices are at levels that would have been considered insane a few years ago.

If we look to Europe, we see the Euro trading at a 50% premium to the dollar. Combine the weak dollar with eBay-induced low prices and European collectors have no choice but to view American certificates as dirt cheap.

At the end of November, FHW (Freunde Historischer Wertpapiere) offered 70 North American railroad certificates in its large auction #96 in Berlin. FHW's minimum starting bids are very high by American standards. Nonetheless, collectors bought 47% of North American railroad certificates offered. Some of those lots sold at prices that would scare the Hell out of most American collectors. After accounting for commission, value added taxes and the dollar-Euro conversion penalty, lots sold for 100% to 500% (!!!) of my estimated catalog prices!

(An example of the Wildwood & Delaware Bay Short Line Railroad certificate shown above sold for $50 on eBay in May. The certificate shown just sold for $258 in Berlin.)

American certificates fetched significant prices in Europe throughout 2009. Even if high prices can be blamed on the weak dollar, the disparity SHOULD be a wake-up call to American collectors. It is obvious that significant numbers of non-American collectors genuinely appreciate rarity and are willing to pay for it. If the dollar continues to weaken and if American collectors continue to ignore rarity, they will wake up some day in the future to find many rare American certificates gone.

Price disparities for collectibles will always exist. Prices always depend on where, when and how collectibles are sold. It is completely normal to see 2X price disparities in our hobby; 3X disparities are not uncommon. The price disparities we're currently seeing, though, are abnormal and 5X price differences are unlikely to linger. Nonetheless, the fact that there are such huge differences of opinion in regard to prices should concern hobbyists on both sides.

Regardless of where they live, collectors can argue that European prices are too high or that American prices are too low. They can argue that European collectors over-value rarity and second-tier autographs. They can argue that American collectors don't value rarity at all. They can argue any way they want.

They can even argue that the one inviolable law of collecting does not apply to them.

But they will be wrong.

Simply put, collectibles always move toward money.

December 04, 2009

Helmut Lange Collection for sale


The massive collection of German collector Hemut Lange is coming up for sale starting December 19, 2009 in Wolfenbüttel. A second part will appear in April, 2010.

The sale is being offered by DWA (Deutsche Wertpapierauktionen GmbH), a subsidiary of FHW (Freunde Historischer Wertpapier.) I just received the 96-page catalog yesterday, meaning the sale is only two weeks away.

The catalog for the auction was put together by long-time dealer Vladimir Gutowski and Fabian Palic. Because of the size of the offering, the catalog has a different appearance than typical FHW catalogs. Everything this time is in black and white with pictures of only parts of the collection.

There are currently 865 lots in the auction, virtually all representing stocks and bonds from railroads. American railroads comprise the bulk of the collection: 610 single-item lots plus 39 multi-item lots. Many lots represent seriously rare certificates. Nine more lots represent other rail operations in North America.

The downside is that the collection is so vast that only 27% of the lots are illustrated in the catalog. I have not yet been able to find any online listing. (I will modify this blog if I hear back from Herr Gutowski). Meanwhile, there are two offsetting features I heartily applaud.

1) Several multi-item lots are illustrated. (I do not know why more auction houses don't show multi-item lots.)

2) Unlike normal European auctions, DWA's starting prices will be 80% of its lower price estimates. (I think this is a REALLY good idea.)

Again, the sale is only two weeks away. There are no listed contacts for DWA, so I heartily recommend you contact FHW immediately if you are thinking about participating in this sale. You can email FHW (info@fhw-online.com), or call (05331/9755-33) or fax (05331/9755-55). This may not be the best way to get the catalog, but it should work.

(American collectors: don't forget the multi-hour time difference. You can find the current time at WorldTimeServer.com.)

November 27, 2009

Telling Collectors About Your Sale



Want me to tell collectors about your upcoming sale?

Send me a copy. (Address here.)

My only requirement is that your sale or fixed-price catalog include at least a few stocks and bonds from North American railroads.

Please let me know if there are special items you think collectors need to know about.

And please make sure you send your catalog with sufficient time for my readers to write, call, or email you for their copy.