March 21, 2019

Boone sale 62 coming April 6, 2019


Mario Boone's latest sale is fast approaching, offering 1,622 certificates from across the globe. Of that number, I count sixty rail-related certificates from North America. Mario's sale will take place at the Crowne Plaza Hotel in Antwerp, Belgium Saturday, April 6 followed by the largest Euopean stock and bond bourse on Sunday.

Even if you already receive the physical catalog, I recommend you view images of the lots online at www.BooneShares.com.

The Euro is currently trading at a 13.7% premium to the dollar. Coupled with the auction commission, prices will seem a bit higher than Americans may be used to. For that reason, I feel compelled to remind collectors that there are many lots in this sale that are exceedingly rare in North America and may not be seen again for many years. By "many year," I mean ten, maybe even twenty years. Having said that, I stress that high rarity does NOT necessarily translate into high price. Therefore, don't be afraid to take a chance.

Here are a few standout rarities that I noticed. You will probably see others that I missed.

United Railroads of Yucatan Inc (lot 1466). A specimen of a £200 bond dated 1910. Possibly unique.

The Mexican Electric Power & Tramway Co (lot 1465). A possible unique 1908 preferred stock certificate.

Madison & Indianapolis Rail Road (lot 1491). An 1852 stock certificate that is the only fourth of its variety known to me. I have not seen this variety offered since it first appeared in 2011. This company controlled track a stretch of track that remains the steepest non-cog railroad grade in North America.

Huntingdon & Broad Top Mountain Rail Road & Coal Co. A scarce purple variety of an 1863, $500 bond.

New Jersey Rail Road & Transportation Co. (lot 1503). This is an 1870 stock, not horribly rare, but seldom seen and offered with a low start price.

Peach Bottom Railroad Co. (lot 1507). An 1882, $100 bond. I know of only five bonds from this company. Every time I have seen it sold, it has seemed underpriced relative to both rarity and desirability. But what do I know?

Pittsburgh Fort Wayne & Chicago Railway Co. (lot 1511). This is an 1885, odd-share stock certificate. I have cataloged other certificates from this company with the same design, but this is a new color and denomination.

The Coxsackie & Greenville Traction Co. (lot 1520). An 1899, $1000 bond that makes only the fourth example known to me.

Omaha & Nebraska-Central Railway (lot 1526). Many collectors shy away from generic certificates like this example of a 1907 stock certificate. I understand. But be aware, before I cataloged this certificate, I had never even heard of this company before! (Never mind that a couple of my correspondents were long-time Nebraska specialists.)

Wabash Chester & Western Railroad Co. (lot 1534). A 1920 stock certificate and only the second certificate to come to my attention.

Point Arena Railroad Co. (lot 1571). This certificate is a star of North American rail-related certificates. Certificate #1 with train and boat at pier in wide vignette of Point Arena. (Point Arena is a hundred miles north along the Pacific Coast from the Golden Gate Bridge.) This certificate was issued to the company president and dated 1881 at San Francisco. This example is considered the only certificate known from this company.

REMINDER. See the home page at www.booneshares.com for registration and bid deadlines. DO NOT PUT OFF until the last minute !!

November 27, 2018

Another monster Holabird sale coming soon


Titled A Sale to "Die" For, Holabird Western Americana Collections will conduct its latest sale over a span of five days, December 5 to 9, 2018 in Reno, Nevada. The sale is titled such because the centerpiece of the sale is a large number of token dies from the Northwest Territorial mint.

Having said that, the dies are but a fraction of the sale. Like Holabird's other sales, the range of collectibles is wide, much wider than I have space to relate. With 5,752 lots being offered, you simply need to get one of of Holabird's full-color catalogs to see for yourself. I contend that if collectors can't find something desirable in this - or other Holabird catalogs - I'm not sure they are really collectors of historic items.

Of course, my interest is telling you about railroad certificates. There are a lot of them in this sale, but even their number pales in comparison to the number of mining certificates offered.

Most, possibly all, of the railroad certificates in this sale were amassed by San Francisco scripophily dealer and collector Ken Prag. Holabird began liquidating Mr. Prag's collection in his October sale. I apologize, but I was so thoroughly involved in getting the third edition of my catalog published, I did not have time to review and write about that sale. In fact, it took me over a month to catalog every certificate offered. This time, I put everything else aside to see what kinds of certificates were coming up for sale. While the railroad portion of the sale is still two weeks off, the number of railroad certificates being offered is so large that I can only hit a few of the high points. I will leave the in-depth digging to my readers because everyone's interests are so varied.

Railroad certificates can be found in lots 5234 through 5752. These lots will go under the hammer starting on December 9, the fifth day of the sale. While I strongly recommend getting a copy of the physical catalog, you can start with a virtual version found at at FHWAC.com. Day 1 items can be found here, or you may go directly to Day 5 to find all the rail-related lots.

(I specifically advise you to use both the printed catalog and the online auction site together. Don't rely on a magnifying glass to check printed photos, because you will overlook rarities. I guarantee it! Instead, use the catalog to focus on items that strike your fancy and then use the auction site to check large images of every lot.) 

Eliminating a handful of non-certificate items, I count a total of 496 lots of railroad certificates. While the majority are single-item lots, 144 lots feature two or more certificates. Unlike multi-item lots in most other sales, Holabird's multi-item lots contain closely-related certificates, normally from the same company. Counting all certificates in all lots, the 'Sale To Die For' will offer 779 railroad certificates.

I specifically mention multi-item lots because there are some hidden gems there that you probably will not expect to find. I won't have time to examine every one of those lots for at least a couple more weeks, but if this sale is anything like the last, you will find some sensational rarities if you look closely enough. I make this prediction this because I recorded 22 (!) entirely new varieties in the last sale from multi-items lots alone. Don't be too quick to ignore multi-item lots.

It is only to be expected that many certificates will appear familiar to advanced collectors. Take the well-known but rare certificate from the Alaska Central Railway Co. with a map occupying the green background of the entire certificate (lot 5245). Almost every railroad specialist has seen pictures of it, but I have recorded only 17 serial numbers up until now. When cataloged, this lot will contribute the 18th example and it will be the earliest known so far.

On the other hand, how many collectors have examples of the Alaska Midland Railway Co (lot 4246) in their collections? Or the Boynton Bicycle Electric Railway?

It you're the person who collects certificates with serial #1, check out rarities like the Lookout Incline Railway (lot 5456) and Los Angeles & Vernon Street Railway (lot 5458). Or how about a stock certificate from the Silverton Railway signed by Otto Mears (lot 5622)? It will become only the second such certificate I have recorded from this rare company, both signed by Mears.

I went through all images of single-item lots in this sale, looking merely for certificates that struck me as unusual. Within about twenty minutes, I spotted five certificates that I have not encountered since recording them from unillustrated lots in the 1990s. This makes the first time I have encountered illusive certificates from the Arlington & Fairfax Railway, Blue Ridge Traction, Indian Valley, Lewiston Nezperce & Eastern and the Palatine Lake Zurich & Wauconda.

I also stumbled across the first instances of certificates from companies like the Pascagoula Street Railway and Power Co., the Portsmouth Kittery & York Street Railway Co., the San Francisco & Bay Counties Railway, the Stamford & Northwestern Railway Co. and the Allentown Passenger Railway.

Stressing again that I have not yet cataloged a single item, I also noticed certificates from two entirely new companies: the Mine Hill Railroad Co. (lot 5482) and the Pacific Coast Express (lot 5493).

Also new was an unissued municipal bond from the City of San Francisco sold to aid the San Francisco & San Jose Rail Road Co. (lot 5605. There is also another entirely new municipal aid bond from the Corporation of the City of Brownsville, Tennessee (lot 5364) that was issued in 1870 to aid an unspecified railroad.

What new certificates and companies hide among the multi-item lots? No idea. I figure I will not have time to check every item before the sale takes place. Hopefully, you will. If wondering when you will see these in the Coxrail database, look for them in the mid-December database update. While some of these items appear for sale a few times per year, I have already alerted you to a few items that probably won't appear more than once or twice per CENTURY. If you miss them now, you are unlikely to ever have a second chance.

Just sayin!

October 17, 2018

Spink USA auction, Oct 30, 2018


Spink will offer fifteen lots of railroad certificates among its wide-ranging selection of collectibles in a sale at its New York offices October 30 and 31.This is sale number 342, the latest addition to Spink's continuing Numismatic Collector's Series. Items offered include coins, paper money, medals and stocks and bonds plus a very nice assortment of World War I posters. (Having sold many of these posters myself, I think these posters would make a delightful sale on their own if photographed and offered individually.)

Like recent sales, Spink is grouping most of its stocks and bonds in multi-item lots. While this is not particularly good for collectors, these lots would make good additions to smaller dealer inventories. Only two of the lots are illustrated in the physical catalog, but all scripophily lots are illustrated online at Spink.com.

Because of the wide array of items offered in this and similar Numismatic Collector's Series sales, collectors will find many highly interesting lots that they would not ordinarily encounter. Those are precisely the kinds of collectibles most people will overlook if not thumbing through the physical catalog. Consequently, that is precisely why I always recommend acquiring catalogs from professional auction sellers such as Spink. However, if only viewing online, then browse offerings of railroad certificates by searching for lots 1079 through 1092, 1099 and 1112A.


October 09, 2018

Boone auction 61 near the end of October


I just received a new catalog from Mario Boone and discovered it offers 102 lots in the North American railroad specialty. I did not keep count when I entered all the information in my database, but it appears that at least half of his offerings are represented by ten or fewer examples.

I do not want this point to go unnoticed. There are LOTS of certificates in auction 61 that you may not have the opportunity to acquire for several years, if ever again.

Yes, you will see some long-time favorites like Ferro Monte Rail Road, Gilpin Tramway and Wat-Chung Railway, but there are a few that I have never seen before.

At least part of these offerings seem to have originated from a collection of one of my long-time correspondents. However, I have no idea where most came from.

The best thing I can do is suggest you acquire a copy of the printed auction catalog. Failing that, please visit booneshares.com and look at items there.

I know there are not a lot of Cuba specialists out there, but eighteen lots represent Cuban railroads. With the exception of certificates from the Cuba Railroad, most Cuban certificates are quite scarce. If you happen to collect certificates from Cuba, please don't miss out. Lot 1037 is a stock certificate from the Western Railway of Havana, Ltd. and is the only certificate I ever encountered. That particular certificate was last offered in Germany in 2008. Equally rare is a specimen from the Banco del Comercio Ferro Carriles Unidos de la Habana Almacenes de Regla (lot 1038), last seen in a 1993 Smythe sale.

There are only five railroad lots from Canada, but among those is a stock certificate from The Cape Breton Railway Extension Co, Ltd. While the company is not new to me, this is the first time I have actually seen an image. Rare? It seems like it to me.

Obviously, I don't have the space to relate every rarity. However, here are a few. In parentheses are the numbers I have encountered since the late 1980s. Like any other super-rare collectible, there is always a possibility that additional unreported examples may exist somewhere. But I wouldn't get my hopes up.

Lot 1164, New Orleans Baton Rouge & Vicksburg Rail Road Co. (3)
Lot 1165, Selma & Gulf Railroad Co. (8)
Lot 1193, Pneumatic Tramway Engine Co. (3)
Lot 1200, Eastern Rolling Stock (1)
Lot 1211, San Diego Cable Railway Co.(2)
Lot 1212, Pensacola Terminal Co.(3)
Lot 1215, Gallatin Light Power & Railway Co. (1, GAL-405-S-30)
Lot 1219, Fair Haven & Westville Rail Road Co. (1, FAI-057a-S-40)
Lot 1222, The Stockton & Tuolumne County Railroad Co. (2 STO-160-S-30)
Lot 1223, Chatham & Lebanon Valley Railroad Co (1, CHA-748-B-25)
Lot 1226, Omaha Southern Railway Co. (4)
Lot 1227, Hastings & Northwestern Railroad Co. (2, HAS-750-S-30)

Note also that Lot 1227, is a serial number 1 certificate.

Auction 61 will take place at the Crowne Plaza Hotel in Antwerp, Belgium, October 27 and 28. The deadline for submitting absentee bids is 8 pm, October 26. I stress once again that there are a bunch of rarities in the sale that probably will not be seen again in the next ten years. Please visit Booneshares.com as soon as possible.



April 02, 2018

Boone Auction 60 in Less Than Two Weeks


Mario Boone’s next auction is scheduled for April 14 in Antwerp and will feature yet another great selection of American railroad rarities. As usual, he features stocks and bonds from around the globe, all arranged by country. The unquestioned highlight of this sale is a Spanish banking and loan document dated 1279 (!). If you are in the market for a 739-year old rarity then, chances are, you already have the catalog for Auction 60 and have planned your bid.

I count 81 rail-related lots from the U.S. plus eight more from elsewhere in North America. I ask you to get online quickly at www.BooneShares.com and look for certificates in your specialties; you are bound to find several pieces of interest. I will mention a few items that caught my attention, either because they are the first I have seen or they APPEAR to be unique or extremely rare.

1901 debenture from the Cuban Central Railways, Ltd. (lot 1607): new to me.

1902 gold bond from the Havana Electric Railway Co. (lot 1608): only the second issued bond I have recorded.

1911 bond from the Havana Terminal Railroad Co. (lot 1613): another item I have never encountered before.

1851 stock from the Rochester & Syracuse Rail-Road (lot 1694): the second serial number known to me.

1865 stock from the Schuylkill & Dauphin Improvement Railroad Co (lot 1703): first recorded.

1872 stock certificate from the Schenectady & Susquehanna Rail Road Co (lot 1709): the second one to come to my attention in 30+ years.

1889 stock from the St Augustine & Halifax River Railway Co (lot 1729): first stock certificate that I have recorded for this company.

1890s specimen stock certificate from the Schenectady Railway Co. (lot 1732): if not unique, then nearly so.

1893 issued stock certificate from the Kaaterskill Railroad Co (lot 1739): while familiar in unissued form, this is the first issued example I have encountered.

1905 uncancelled stock certificate from The South Omaha & Western Railroad Co (lot 1753): serial #1 and still the only example I have ever recorded.

1915 uncancelled stock certificate from the New York & Queens County Railway Co (lot 1760): so far, only one known to me.

1947 stock certificate from the Salt Lake Rail & Bus Terminal Co (lot 1771): although recorded before, this remains the only certificate I know from this company.

The word unique means one of a kind; the only one in existence in the entire world. Unless there is some sort of definite proof, I am exceedingly reluctant to speculate that any certificate is truly unique. And I hate to say that another will never appear. ALL of us have been surprised more than once. Nonetheless, based on thirty years of recording over a million offerings of railroad stocks and bonds, I will suggest that several items in this auction APPEAR to be highly rare. Therefore, if sold, I believe we are unlikely to ever encounter several of these certificates again in our collecting careers.

Please visit www.BooneShares.com or email to receive a copy of this 263-page, full-color catalog. And yes, I know that commissions, VAT, postage and the declining value of the dollar relative to the Euro are penalties on American collectors. No argument there. But, what value do you place in your quest? And how many of these items do you expect to ever see again?

December 28, 2017

HWPH auction January 20 & 22, 2018


I received the latest offering from Historisches Wesrtpapierehaus AG (HWPH) over the Christmas weekend. Auktion 47 will offer 928 lots, predominately from Germany and Russia. There are only a few lots representing North America and only one 471-item lot related to American railroads. Thankfully Herr Schmitt posted a complete list of the contents of that large lot on the web. (See lot 47.)

For collectors of American railroads, online Auktion 48 is more enticing. 60 of the 2,398 lots involve American and Cuban railroading. About half are seen very rarely in the United States and are not the kinds of certificates any experienced collector should hope to find on eBay. For that reason, I suggest collectors take a serious look at this sale. Several certificates in this sale will not be seen again in the next decade, so I will mention a few that caught my attention.

Several collectors will recognize a $1000 bond from the Brooklyn & Brighton Beach Railroad (lot 2064). One of these certificates appears for sale every couple of years, but the number of collectors who want one routinely pushes auction prices over $150. It is more elusive than its familiarity might suggest.

Certificates from the American Car & Foundry Co should also appear familiar, but the 100-share certificate offered in this sale (lot 2032) is much scarcer than most people realize. Similarly, a 1908 $1000 bond from the Chicago Subway Company (lot 2079) is another infrequently-seen beauty that might be overlooked.

Now to the rarities.

Labeled 'Brunswick & Albany Bahn', the certificate in lot 2066 is a certificate of deposit is one of only five I have recorded. This unassuming certificate was used for bonds deposited with the Brunswick & Albany Committee in Frankfurt in 1872. Only one of the five was sold in the U.S.

Lot 2140 is a £250 bond from the Havana Railroads Company, dated 1859 and only the third to come to my attention. Sadly, Cuban railroad certificates seldom attract the attention their rarity might imply. This is especially true of on orange 1-share preferred certificate from the Cuba North & South Railroad (lot 2115). This is a bearer share certificate and I can attest that bearer shares are very uncommon from anywhere in North America other than companies that operated in the Caribbean island. This orange variety is one of only four that I have encountered.

However, there is also a green common share companion (lot 2114), which just happens to be the first I have ever listed. Hmmm, I wonder how many collectors are going to realize the rarity (!) of this certificate, especially considering HWPH's minimum bid is only €140.

Another first to me is a warrant from the Erie Railroad to purchase common stock (lot 2126). It is admittedly plain, but still a new item for my catalog.

Also the first of its kind is a specimen 1925 equipment trust certificate for $1000 from the Great Northern Railway (lot 2126). Yes, it also is plain. And yes, not very many people collect equipment trust certificates. Still, if a collector is attracted to rarity for the sake of rarity (as many are), he/she should take a look at these kinds of certificates that usually fly under the radar of most collectors.

I can't remember exactly when I first started cataloging railroad certificates, but I think it was about 1987. If true, then lot 2169 seems to be rare. It is a $10,000 bond from the New Orleans & Northeastern Railroad Co dated 1917 and only the fourth serial number I have recorded of this variety. No question about it, there are probably more around. After all, there is no way anyone could have listed every railroad certificate offered over the last 30 years by hundreds of dealers in fifteen or more countries. But no true collector should ever call this certificate common!

Another uncommon certificate is lot 2081, a 10-share common stock certificate from the Chicago Milwaukee & St Paul Railway, dated 1912. It might look a familiar to the uninitiated, but it is only the third such certificate I know about.

Still not impressed? How about a certificate I have recorded only once before? Lot 2150 is a $1000 second mortgage gold bond from the Kansas City & Northern Connecting Railroad. Minimum bid? €100.

Finally, do you just want a great vignette? Then look at lot 2082 from the Christopher & Tenth Street Rail Road. Minimum bid: €30.

See all these certificates and about three thousand more at www.hwph.de, the website for Historisches Wertpapiere AG. Once you reach the home page, click on the flag appropriate to your language. (Click this link to go directly to the complete list of auction items in Auktion 48.)

Finally I personally recommend you also acquire the beautiful full-color print editions.

November 21, 2017

Fully paid and non-assessable


Why 'Fully paid and non-assessable?"


Many railroad stock certificates carry the declaration "Fully paid and non-assessable." In simple terms, that means that companies agreed to NOT demand money from shareholders beyond the amount they paid for their shares. While stock exchanges did not require such statements on certificates, many companies added the phrase to purposely distinguish their issuances from companies that could – or would – demand extra money from shareholders.

It was very common to see the phrase "Fully paid and non-assessable" on paper stock certificates before electronic trading came along in the 1990s. While not necessarily understood by investors at the time, its presence on collectible certificates now serves as clear evidence that most early stocks were assessable.

Assessability grew out of high par values


Prior to 1910, approximately 90% of all railroad companies sold shares for $50 or $100 per share (the par value). That percentage did not vary much throughout that entire period. While $100 shares do not seem overly expensive today, $100 was a very hefty investment at that time. Here is a chart that shows the purchasing power of $100 at various times in the past if converted to today’s (November, 2017) dollars.

$100 in 1840 = about $2,700 in 2017
$100 in 1850 = about $3,010 in 2017
$100 in 1860 = about $2,820 in 2017
$100 in 1870 = about $1,800 in 2017
$100 in 1880 = about $2,170 in 2017
$100 in 1890 = about $2,490 in 2017
$100 in 1900 = about $2,660 in 2017
(rounded from Bureau of Labor Statistics measurement of U.S. inflation rate.)

There are disagreements over the many ways to estimate the value of a dollar through time and what the various results mean. Nonetheless, suffice it to say that average citizens were hard-pressed to invest in a single share of stock, let alone multiple shares. By limiting participation to only the wealthier slice of society, $50 and $100 par values often made it hard for startup companies to raise sufficient funds for development and equipment.

Enticing investors to pay for shares a little at a time


Certificates from the 1830s are not common, but the few that survive suggest that companies discovered early on that they could raise more money by offering shares for lower initial amounts and then assessing buyers for the remainder over time. Out of the need to entice sales, companies invented investing on a layaway plan. 

The initial par value of stock from the Baltimore & Ohio Railroad was $100. However, even as early as 1835, the company sold some of its shares for $50 and $75 and assessed buyers for the remainder after purchase. (See BAL-662a-S 25a and S-25b.)

Evidence of discounted sales from other companies can be inferred from rare (and seemingly under-priced) assessment requests and assessments receipts that survive. Here is an 1864 example of an assessment receipt from the Agricultural Branch Rail Road.


And here is an example of a stock certificate identical to one that the shareholder above would have owned. 


What if shareholders did not pay their assessments?


By the middle of the 1800s, many companies were selling shares for 10% down and assessing stockholders for the remainder, usually 10% per quarter. That does not mean all stockholders had the abilities or desires to pay when demanded. On the flip side, the refusal by stockholders to honor their commitments often created financial hardships for companies. Many companies responded to non-payments by modifying their corporate by-laws to force stockholders to forfeit their shares for failing to pay assessments.

(Note that the stock certificate above is silent about either assessments or potential pentalties.)

Did all shareholders know about or understand such penalties? Probably not. In fact, I currently know of only one railroad company that mentioned the penalty of forfeiture on its certificates. Here is an example of that text from the Mohawk Valley Rail Road Company (S-40, courtesy of Thomas O'Shaughnessy.)


Records are scarce, but we can surmise that losses of initial investments through non-payment of assessments would have come as shocking surprises to small investors.

Assessments for additional funds


In addition to ordinary assessments for partially-paid par values, an unknown percentage of companies also retained the right to assess stockholders for operating funds if needs arose. Such companies argued that stockholders were part owners of companies and therefore were responsible for contributing more money if companies fell onto hard times and economic trouble.

Records of lawsuits between stockholders and companies show that corporate by-laws generally prevailed when stockholders balked at onerous demands for money above and beyond par values. While often ignored by courts, shareholders often claimed that they should not be required to pay for the fiscal irresponsibility of operating officers. Charges of overly high presidential salaries are not a new phenomenon.

Did assessments help stock sales?


It seems obvious that stockholder lawsuits of any kind could not have been good for corporate stock sales. As early as 1866, railroad companies responded to objections over assessments by declaring their shares non-assessable. The earliest non-assessable stock certificate currently recorded in the database is S-50 from The Montgomery & Erie Railway Company.

With the perspective of 150 years, it seems logical that stockholder lawsuits over assessments probably dampened sales of assessable railroad stock. We have no clear proof among railroad certificates, but boisterous arguments among western precious metal mines about assessable stock certainly quickened the trend toward non-assessability in that industry.

When did assessable railroad stocks disappear?


Lacking access to all but a few corporate records, it is terribly difficult to determine a date when assessable railroad stocks disappeared from trading. I can find mentions of assessable western mining stocks being sold as late as 1916. Although he offered no proof, author Thomas Gibson specifically stated in 1919 (Simple Principles of Investment, p118 )that, “There is no such thing as an assessable railroad stock.” It is hard to prove a negative, but I have been unable to find any records of successful assessments on railroad stockholders after 1898. (Stuart Daggett, 1908, Railroad Reorganization.) Splitting the differences between those dates, I suggest it is reasonably safe to assume that most assessable railroad stocks were gone by 1910.

How can a collector know if a stock certificate was assessable or not? 


Generally, the determination is unclear. The most obvious evidence appears in the form of phrases found on collectible certificates attesting to non-assessability:
  • Full paid
  • Fully paid
  • Full paid and unassessable
  • Full paid and non-assessable
  • Fully paid and non-assessable
  • Fully paid up and non-assessable
  • Full paid shares non assessable
  • Full paid and non-liable
  • Full paid, not subject to assessment
  • Full paid and neither assessable or redeemable
  • Full paid and forever non-assessable
  • Fully paid and free from assessments
  • Fully paid and not liable for any further calls
  • Full paid and not subject to further calls or assessments
  • Not subject to any future calls or assessments
  • Paid up
  • Paid up and non-assessable
Currently, only about 14% of varieties of collectible railroad certificates can be positively identified as non-assessable. On the other hand, printed evidence of assessability is much scarcer and harder to find. Collectors will find sparse mention on stock certificates in text similar to:
  • assessable shares
  • subject to assessments
  • subject to all payments due
  • subject to assessments as provided in the By-laws of said corporation
  • subject to each assessment as may be legally made thereon
  • on which there is due and to be paid on call of the directors
It appears that companies often understated assessability by referring to provisions in company by-laws. It would seem that few investors would have known how to acquire company-bylaws and fewer still would have taken the time to do so. What appears to be possible references to assessability may be found in rather common and oblique language on certificates such as:
  • subject to the provisions of the Charter and the By-laws of the Company
  • subject to the Memorandum and Articles of Association thereof

Most evidence of assessability can be implied by certificates that sold initially for less than par value. That behavior was relatively common between about 1840 and 1880. Such shares often carried phrases similar to:

“…on which ______________ Dollars per share have been paid.”


Does assessability affect collector bids?


As a group, railroad stock certificates that clearly state assessability are much scarcer than those that display phrases similar to "Fully paid and non-assessable." Assessable stock certificates that mention forfeiture penalties are highly rare. However, I cannot find any evidence that collectors are willing to pay premiums for such rarity. At this point in time, the issue of assessability is barely a curiosity.