HWPH auctions Friedrich Wilhelm III scripophily, a VOC bond from the Dutch Golden Age and nearly 2000 lots of historic stock certificates.

Historisches Wertpapierhaus AG (HWPH) scheduled its next double-session sale for 3 and 4 September 2022. For this occasion specialist Matthias Schmitt and his team brought together some 2,000 lots of scripophily and related documents . 

Included are several top-notch items such as a unique share from the Preussische See-Assecuranz-Compagnie issued to King Frederick William III of Prussia and one of the oldest securities from the mother of all joint stock companies, a Vereenigde Oostindische Compagnie bond from 1623. 

L(ot) 568 in the auction is this wonderful share from the Actien-Verein für den zoologischen Garten zu Dresden. The Dresden Zoo opened in 1861 and was bombed in World War II by the Allies. Reopened in 1946 it now welcomes about 1 million visitors per year. This 50 thaler share from 1863 starts at €1800. 

The first leg of the auction is both a live and an online event and takes place in Zorneding, near Munich. The second part is an online only sale and happens the next day. 

A major part of the offerings consists of antique bonds and shares from Germany, spread over several sections in both parts of the event. Among several German highlights you'll find these two :

• A radical democratic anti-monarchist, Gustave Struve's Gesellschaft deutscher Republikaner tried to finance the German revolutions of 1848-1849 with the issue of bonds. L515 is one of these rare certificates. Illustrated with several allegorical vignettes, it is propably the earliest known scripophily showing the colors of Germany's flag.
• AEG, worldwide known today for its eponymous home appliances brand, originated as the Deutsche Edison-Gesellschaft für angewandte Elektrizität. The auction features a 1883 share from this company, L538. The company changed its name change into Allgemeine Elektricitäts-Gesellschaft. L539 is a share, 1887, from the first issue using the new name. Both are extremely rare. 

Perhaps the most spectacular object in HWPH's auction is this share in the Preussische See-Assecuranz-Compagnie. The company provided insurances against sea and fire risks and was organized in Szczecin, Poland, then capital of the Prussian Provence of Pomerania. The share shows a three-master with the flag of Prussia (click image) and is issued in 1825 to Frederick William III King of Prussia (1797-1840). He joined the coalition against Napoleon, and unified the Protestant churches in Prussia. Tsar Nicholas II of Russia and Kaiser Wilhelm II are two of his grandchildren. L546, a unique historic document from Germany's and Poland's prehistory, is expected to realize €25,000 

The sale includes many more lots from all over the world. The auction's online catalog allows searching for your interests by means of country as well as thematic indexes. I tried out Luftfahrt (aviation) which refered to several airline companies : 

• Linhas Aereas Paulistas S.A. (LAP), Brazil map vignette, L68
• Lloyd Aereo Boliviano, L69, La Paz, aircraft vignette
• Badisch-Pfälzische Luft-Hansa A.G. Mannheim, L221
• Cathay Pacific Airways Limited, L734
• Japan Air Lines Company, Ltd., L770 and L771

Founded as Pan American Airways in 1927, Pan Am became the largest international airline of the USA in the 20th century. Its advertisements and so-called "Clippper" airplanes featured in movies like 2001: A Space Odyssey, Live and Let Die, Blade Runner and Catch Me If You Can. The company ceased operations in 1991 and reincarnated several times. The Pan Am Corporation owned and controlled the airline and services division. This share was issued in 1998 to scripophily pioneer Wilhelm H. Kuhlmann. Bidding on L1761 starts at €50  

There is plenty to discover in HWPH's auction catalogs. The live auction concludes with a meeting for EDHAC members. Here are the details of the event:

• Dates
• 3 September 2022, Zorneding, Germany, public auction
• 4 September 2022, online auction
• Further info and catalogs, see here on HWPH. 
• Live bidding is possible through Invaluable.com, see here, where you can find high quality images of the lots.

Collectors of 18th century scripophily, and even older items, will find more than 50 entries in their category. The most iconic lot is a 1623 bond for 1000 Flemish Pounds from the Vereenigde Oostindische Compagnie (V.O.C.), aka Oost-Indische Compagnie aka Dutch East India Company.  Securities from this historic company are extremely rare and considered the crème de la crème in our field. Why can be read on this blog here. In 2019 HWPH auctioned a similar bond, issued for 500 Flemish Pounds, at €46,000 without buyer's premium. L500 starts at €40,000. 

F.L.

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Taxonomy of a certificate : Passoeroean Stoomtram-Maatschappij

Taxonomy is the practice of describing, identifying, naming, and classifying things on the basis of characteristics. Using a predefined list of characteristics makes it easy to register your collectibles in a document, a spreadsheet, or any other database application.

As far as antique securities are concerned, you can define as many characteristics as you need. I usually consider two groups of characteristics :

• those that you derive from the certificate's appearance: physical characteristics 
• and those that you get after more research: researched characteristics.

As an example I use a Dutch stock certificate from the Passoeroean Stoomtram-Maatschappij, Dutch for 'Pasuruan Steam Tram Company'.

Physical characteristics

• Issuer : Naamloze Vennootschap Passoeroean Stoomtram-Maatschappij (PSM)
• Type :  share 
• Denomination : 100 gulden  
• Capital/Principal : 500,000 gulden 
• Issue date : 1st July, 1905
• Place of issue : 's-Gravenhage, the "old" name for Den Haag
• Registered or bearer : bearer 
• Lifecycle status : issued and uncancelled
• Printer : Zuid-Hollandsche Boek- en Handelsdrukkerij  
• Colors : blue 
• Design & vignettes : borders with scrollwork of leaves and flowers 
• Engraver : none mentioned
• Artist : none mentioned
• Language : Dutch
• Security features 
• seal : none
• watermark : none
• handwritten signatures : yes
• Notable person (signed by, issued to, transferred to) : none
• Format : vertical
• Medium carrier : paper
• Special remarks : -

This Passoeroean Stoomtram-Maatschappij share from 1905 was printed by the Zuid-Hollandsche Boek- en Handelsdrukkerij. The latter company became part of the Elsevier publishing house in the late 1970s.

Researched characteristics  

• Country of issuance : The Netherlands 
• Place of operations : Pasuruan, East Java
• Country of operations : Indonesia
• Type of operations : railway 
• Era : Ethical Policy program of the Dutch East Indies (1900-WWII)

Once you have specified a certificate's characteristics, you can use that information to find out more about the certificate, its issuer, the latter's location or possible notable persons involved. 

The term Naamloze Vennootschap, in short NV, corresponds to similar concepts in other countries such as Aktiebolag (AB), Aktiengesellschaft (AG), Incorporated (Inc), Public Limited Company (Plc), Société Anonyme, Sociedad Anónima and Spółka Akcyjna (SA), Società per Azioni and Societate pe Acțiuni  (SpA), Ανώνυμη Εταιρεία (A.E.), etc. In Indonesia the term Perseroan Terbatas (PT) is used.

What have I learned about this antique share certificate?

Sugar producers need a tramway

The illustrated share in the Passoeroean Stoomtram-Maatschappij (PSM) was issued in 1905 during the so-called Ethical Policy program. Aimed at promoting the living conditions of the Indonesians, this Dutch colonial policy comprised these pillars : 

1. Irrigation, introduction of banking services and subsidies for indigenous industries and handicrafts,
2. Education, including the organization of a Dutch school system,
3. Migration of people from the over-populated Java to the less densely populated areas of Indonesia.

Unlike the Ethical Policy program, the PSM was a success. The company organized transport of passengers and products such as sugarcane, tea and tobacco for nearly 100 years. Actually sugar cultivation was the main reason to set up this tramway company.

The PSM imported locomotives made by Lokomotivbau Hohenzollern, HANOMAG and Cockerill. The one shown on this picture taken around 1910 is the Cockerill C2201 "Louisa".

image : Tidak Diketahui, Public domain, via Wikimedia Commons

Colonial Indonesia's Liberal Period introduced private (mainly Dutch) entrepreneurship. The Sugar Act of 1870 allowed private companies to start sugar cane plantations in the Dutch East Indies. Soon, the region around Pasuruan saw the startup of several sugar factories. Pasuruan lies in East Java along the coast line between Surabaya and Probolinggo.

To provide cheap and fast rail transport to and from the sugar mills, the government granted several concessions to the PSM for building and operating a railway. The 6km track between Pasuruan and Warung Dowo was inaugurated on May 21, 1896. Others sections followed. The last one was opened in 1912 and connected Warung Dowo with Ngempit over a 5km distance. 

Some of PSM's branches were closed under Japanese Occupation during World War II. Others were further closed due to increased competition by road transport. The remainder of the PSM lines are now operated by PT Kereta Api Indonesia.

Oh, did you know that the Indonesian word for tram is trem !

F.L.

Previous posts 

• George Bellows's Men of the Docks 
• Scripophily Puzzle No. 4 - solution 

Did you miss Scripophily magazine in 2019 ? On purpose ?

Scripophily is the world’s most comprehensive and insightful publication for passionate collectors and active researchers of antique securities. This three-yearly periodical, printed on high quality paper, is the flagship of The International Bond and Share Society (IBSS).

Scripophily magazine discusses hundreds of auction highlights. Issue 109, April 2019, mentioned this certificate in the report on Boone's October 2018 auction. It is a dividend share in The Compagnie Belge-Néerlandaise de Sambas (Borneo). This Belgian enterprise obtained concessions for mining, agricultural and forestry operations from the sultan of Sambas. Its 1899  share realized €180 in the auction. 

courtesy : www.booneshares.com 

If you don't know the magazine then here are 4 takeaways :

1. Enjoy fascinating stories on the people and organizations that issued the old stock and bond certificates. 
2. Read about the latest market and auction reports.
3. Stay up-to-date on important news, and gossip. Scripophily magazine informs you about new discoveries, announcements by collector clubs and scripophily related exhibitions, publication of books, rumours and fait-divers about our hobby, events and bourses, and much more.
4. Scripophily magazine is the only English language journal covering topics from all over the world about any theme thinkable.

The three 2019 issues of Scripophily magazine counted over 120 pages, reported on about 100 auctions, featured around 400 images, and were shipped to over three hundred members on all continents. 

On top of that, subscribing to Scripophily magazine brings you valuable free extras :

• The IBSS Directory brings you in contact with fellow collectors. Many of those are experts in their field, often share common interests with you, and possibly live nearby. The Directory contains members from more than 40 countries.
• The Newsletter, so you may keep up with what is going on
• Access to all content on the IBSS website, including digital versions of previous issues of Scripophily magazine, the online forum, special theme galleries, and the like.
• Newsflashes on the website focus on hot topics that can't wait for the next issue of the magazine. 
• Get extra credibility : being listed as a member is a good reference in any deals made remotely with parties previously unknown. 

What's the catch ? 

Well, the subscription fee is ridiculous, that's all. Subscribing to IBSS's magazine costs you only £20 or $32 or €25, true ! I looked it up. The price is still the same as it was in 2013. How much longer will it stay like that. Now that you know it, don't miss this boat.

F.L. 

Related links

• IBSS web site 
• Join IBSS, subscribe to Scripophily magazine 

Previous posts

• Franky's Scripophily BlogSpot exists 10 years ! 
• Star of India  

The most valuable scripophily item hammered in 2019

What was the highest priced scripophily sale at auction in 2019 ? Was it a previously unseen Chinese Imperial bond, a pioneering British railway share, or one of Apple's founders shares personally signed by Steve Jobs ? None of these. It was a Dutch bond from the 17th century, and it was sold in HWPH's 52nd Auction, at Würzburg on 4 May 2019.

Top sale in 2019, reported by the International Bond and Share Society (IBSS), was a 6.5% bond issued by the Vereenigde Oost-Indische Compagnie, also known as the VOC (Dutch East India Company). The bond, unnumbered and pen cancelled, measures about 32 x 21 cm. It was printed on handmade paper and issued, with signatures, on 25 April 1623 for 500 Flemish Pounds. 

If you want to know why this VOC bond certificate achieved a top price at auction, then you need to know what kind of company the VOC was.

The VOC started as a Dutch trading company. A number of competing pre-companies from the Republic of the Seven United Netherlands formed in 1602 the VOC with a capital of 6,440,200 guilders. The new company paid 25,000 guilders for a 21-year monopoly to explore, colonize and trade with the East Indies. 

This map from around 1665 shows VOC's tradezone. The Indian subcontinent is marked as 'MOGOL'. In the lower right corner you'll recognize 'HOLLANDIA NOVA', Australia. Click the image to enlarge : the small dots along the coast lines with names in black are the company's establishments. 

source : © Nationaal Archief Ref. 4.VEL-312, via Wikipedia 

The VOC built its own ships in Amsterdam, Middelburg, Zaandam but also near Batavia (Jakarta). Tsar Peter I of Russia worked incognito as a ship's carpenter at the VOC's shipyards in the Netherlands.

The company was involved in the production and trade of East Indian spices, sugarcane from Formosa, wine from South Africa and lots more. The Shoguns of Japan allowed the VOC as the only European partner to conduct business with. Japanese porcelain, then much in demand, came to Europe on a VOC ship.

In its overseas colonies, the VOC had governmental powers, including the ability to wage war, imprison and execute convicts. In some parts of the world, the VOC produced its own gunpowder like in its refinery at Chhapra, West Bengal, where it processed saltpeter from Patna.

Original bond and share certificates from the VOC are extremely rare. These tangible objects mark a striking period in the history of the world. A similar VOC bond like this was auctioned by HWPH in April 2014 for €30,000. In the auctioneer's May 2019 auction our VOC bond started with that ask price.    

image courtesy : HWPH - Historisches Wertpapierhaus AG, www.hwph.de 

In order to maintain control in and maximize profits from its overseas destinations the VOC did not hesitate to suppress locals with or without the help of the local rulers. At some point in the 17th century the VOC controlled all harbors in Asia. The company commanded then over hundreds of ships, a quarter of them warships, tens of thousands of employees and led a private army of 10,000 soldiers.

The fourth war between England and The Netherlands (1780-1784) caused problems for the VOC. The English had captured many VOC trading posts, and the company's ships were unable to arrive safely at the company's European harbors. VOC ships, loaded with valuable merchandise, were hijacked. The company lost money.

When the French invaded The Netherlands in 1795, the VOC could no longer operate. Almost 200 years after its founding, the company was liquidated in 1798.  

Dutch coins were not in demand in the East Indies, so the VOC was permitted to strike its own coins. 

source: no machine-readable author provided. Svdmolen assumed (based on copyright claims). / CC BY-SA via wikipedia 

The Vereenigde Oost-Indische Compagnie was one of the first globally operating corporations. Being the first company listed on a stock exchange it applied a business model that still exists today.

The VOC founded trading posts and production settlements in today's South Africa, Mauritius, India, Malaysia, Indonesia, Thailand, Vietnam, Taiwan, China and Japan. Therefore, this VOC bond is one of the oldest known scripophily documents related to these countries.

Regardless its military operations, the company brought European ideas, technology and art to Asia, but equally the other way around. It opened up the world to the world.

Our bond certificate, lot 632 in the auction, was expected to realize at least €30,000. In fact, it turned out to be the best-selling item in the sale and the most expensive one sold at auction in 2019. Lot 632 was sold at €46,000, and that's without the buyer's premium.

F.L.


Related links

• International Bond and Share Society
• Wikipedia's Dutch East India Company entry  
• HWPH - Historisches Wertpapierhaus AG 
• A History of the World in 100 Objects, by Neil MacGregor 

Top auctions in the scripophily market are extensively covered in Scripophily magazine, a publication by IBSS. The magazine brings you in-depth articles, compelling stories, and memorable personalities. A substantial part of the magazine is dedicated to reports on auctions that took place all over the world. Three issues per year discuss remarkable sales from over 70 auctions in this field of collecting. 

www.scripophily.org 

Selamat pagi ! Boone auctions Indonesian scripophily

Mario Boone's 64th auction takes place on 4 April. The sale offers about 1,700 lots of antique stocks and bonds from all corners of the world. I'll come back to these in a follow up post but now I want to discuss a unique scripophily collection that is part of the sale. 

Boone's upcoming sale features the first part of a unique collection of Indonesian scripophily. This is a 1895 share from the Kediri-Stoomtrammaatschappij. The company, founded in the same year, ran a steam operated tramway service connecting Kediri with Pare and Jombang, East Java. Tens of sugar factories from the surrounding area used the line to deliver their produce in Kedira, a sugar trading hub. Lot 245 in the auction

Boone's upcoming sale includes the first part of an extraordinary collection of bonds and shares related to Indonesia's colonial history. This time almost 250 lots will be auctioned from many economic themes like mining, oil extraction, tobacco, agriculture, coffee, tea, sugar, rubber, forestry, construction & building, banking, insurance, shipping, railroads & tramways, transport, trading, shops, electric-water-lighting utilities, and more.

The Maatschappij tot Exploitatie van de Suikeronderneming Koning Willem II was founded in 1891 with a capital of 492,000 Gulden divided into 984 shares. Its sugar factory was located in Sidoardjo. L117 

Indonesia is a quite impressive country. Its name origins from the Greek words Indos (Ἰνδός) and nesos (νῆσος), meaning "Indian" and "islands". More than 17,000 islands are home to about 270 million people (2018), more or less 1/3rd of the population in Europe. Indonesians use about 540,000 kilometers of roads. The country occupies an area of 1.9 million km2, that is roughly 1/5th of Europe. Unlike Europe, the islands count 400 volcanoes, around 130 are active. Their eruptions in the distant past produced fertile lands, ideally suited for farming and coffee and tea estates. 

Lot 292 consists of a 1949 share and this preference share, 1937, both specimens, from Heineken's Nederlandsch-Indische Bierbrouwerij Maatschappij, Surabaya. The brewery company makes one of Indonesia's most popular beers, Bintang.

The collection covers dozens of locations from different islands, e.g. Java: Jogjakarta, Magelang, Besuki, Japara, Sidoarjo, Surabaya, Madoera, Probolinggo; Borneo: Benkajang, Balangan; Sulawesi: Pagoeat, Belang; and Sumatra: Tjenako, Langkat, Medan, Tamiang. Many more places and districts can be found in the catalog's lot descriptions.

NV "Prauwenveer Kalimas" from Surabaya operated a ferry service with Indonesian proas, L263

Auction details

• Location : Internet only
• Date : 4 April 2020
• Further info : 
• online catalog & bidding here, or via the Invaluable platform
• PDF version of the catalog there 

From the Indonesia collection : a 1912, Art Nouveau style, share from Les Huileries de Sumatra, a palm oil producer. Lot 212 in the sale.

F.L.
NB : The latter image is for a short period available as an online jigsaw puzzle, check that out here.

Historisches Wertpapierhaus AG surprises with top-notch scripophily auctions

When it comes to antique stock and bond certificates Historisches Wertpapierhaus AG (HWPH) is a major player in the field. Manager Matthias Schmitt and his dedicated team bring us next weekend a double-session sale. About 2200 lots of scripophily and related documents will go on the block.

Club de Regatas do Flamengo, Titulo de Sócio Patrimonial, 1966, L(ot) 618, €120 start price

"Flamengo" is a Rio de Janeiro sports club best known for their football team. The share shows 18 different vignettes of sports and is one of several in the sale that were issued by famous football teams (lot 615 through 630). 

The first sale is a live auction at Würzburg, Germany, on the 4th of May 2019, followed two days later by an online auction. Both sales offer together nearly 2200 lots of historic and beautiful antique stocks and bonds from all continents.

The 13th-18th century section deserves special attention. It includes about 50 lots of historic and museum-caliber securities. One of these is a founder's share in the Iron Bridge Company "for Building a Bridge across the River Severn" from 1777. This company marks the beginning of the Industrial Revolution. Its amazing and extremely rare share starts at €22000, L635 in the auction. 

Another highlight is a Bank of Alexandria share from 1796. It is issued to George Washington, first president of the United States of America. Only one known, in other words unique, L672 starts from €15000.
Top item in the sale is a 500 Flemish Pounds bond from the Dutch East India Company (VOC), dated 1623, see next image!

The Dutch East India Company (in Dutch : Vereenigde Oost-Indische Compagnie or VOC) was established in 1602 for the purpose of trade, exploration and colonization. The VOC was involved in shipbuilding, production and trade of East Indian spices, sugarcane from Formosa, wine from South Africa and lots more. In some parts of the world, the VOC produced its own gunpowder like in its refinery at Chhapra, West Bengal, where it processed saltpeter from Patna. The company became one of the first globally operating corprorations. In its overseas colonies, the VOC had governmental powers, including the ability to wage war, imprison and execute convicts and strike its own coins. It was the first corporation to be listed on an official stock exchange. L632 in the auction is expected to realize at least €30000.

Collectors of Chinese government securities will notice several specimen bonds previously unseen before. HWPH tells more about these in an in-depth article in Scripozine.

The auctioneer provides four downloadable PDF catalogues with extensive descriptions, available for free (see links further below):

• 50 Highlights
• 52nd Auction (Public)
• 53rd Auction (Online)
• Russia and former USSR

The latter presents all Russia-related lots in the Russian language.
Remote bidding is also possiblie through Invaluable.com where the auctioneer listed each lot with corresponding images. Here are some more examples of highly remarkable scripophily.

This bilingual Russian-English specimen bond from the State Bank of the Union of Soviet Socialist Republics dates from 1927. Also known as Gosbank this state bank was for about half a century the only bank in the USSR. L746 in the sale starts at €250

Great Cariboo Gold Company, share, issued by the Standard Finance Company, New York City, 1905. 

Registered in South Dakota, USA, the mines were located in British Columbia, Canada. Fabulous design of gold mining scenes and eight nuggets printed in gold colour. This certificate is the only survived example known. L636, €2000 start price 

Gewerkschaft des Steinkohlenbergwerks Lippermulde, coal mine, Hamborn am Rhein, 1923

Rare, this Kuxschein (mining shares certificate), is issued to industrialist August Thyssen, signed by him and Julius Thyssen, transferred on the back to August's son Heinrich, and signed on the back by Fritz Thyssen and again by Julius Thyssen. Bidding on L639 is invited from €2500 

You can find more of these fascinating stocks and bonds in HWPH's sale catalogues. Here are the auction details :

• Dates
• 4 May 2019, Würzburg, Germany, public auction
• 6 May 2019, online auction
• Further info and downloadable PDF's, see here on HWPH. 

F.L.

What is a share certificate, what is a stock certificate ?

Share certificates are no testimonies of charity, nor are stock certificates a special kind of inventory lists. But what are they? If you are not really into finance, you might not know what these objects stand for. 

The Millar Loom Company Limited

Share certificate for 100 shares of £1, printed by Howard and Jones, London

double-click image to enlarge

-

The Millar Loom Co Ltd was formed to buy patents for a new type of loom.

This particular share issued in 1898 mentions that Lieutenant-Colonel Ernest Richard Hope Torin
is the Registered Proprietor of the certificate. From 1874 to 1884 he served 
with the 13th Hussars cavalry (Baden-Powell) in India and Afghanistan . 

You can see Torin's picture here. 

Synonyms

Both terms, share certificate and stock certificate, mean the same. They are synonyms. The former is more widely used in Commonwealth of Nations countries (e.g. UK, Canada, Australia, India), the latter is preferred in the US. The word stock refers to the capital stock of a company.

Here are the terms in some other languages :

aandeel , action, actie, Aktie, részvény, azione, acción, ação, osake, acțiune, hlutabréf, hisse senedi, aktiebrev, АКЦИЯ, АКЦIA, μετοχή, תעודת מניה, शेयर, 股權證書, 株券, 주권 , شهادة الأسهم

Just like in English, probably every language has its own synonyms. In Germany we speak of Aktie and Anteilschein, in France of action, part or titre, in Swedish aktie and aktiebref, in Spain acción, parte and cédula.

Minas de Cármenes Sociedad Anonima

Share of 500 Pesetas, série A, Gijon, 1903

-

A bearer share certificate, in Spanish:acción al portador, 

is issued without mentioning the shareholder's name. 

The lower half of the certificate shows 32 dividend coupons.

Ownership in a company

In order to explain what these certificates are, I must tell you first about companies. Suppose you want to start a business. Then you will need an amount of money to get your business up and running. You likely will have to lease or invest in business assets, pay for work or services, buy consumer goods, and lots of other things.

But your financial resources may not be sufficient; or, you might want to share the investment risk with others. These are the main reasons why you form a joint-stock company. In that case, you allow others to participate when they co-invest in your company. In return they receive share certificates in your company in proportion to the amount invested. So, a share certificate represents ownership in a company.

Ypersche Weverij Naamloze Vennootschap

Le Textile Yprois Société Anonyme

English : Ypres Textile Company

Registered founder's share, 1924

-

Registered shares mention the name of the shareholder,  

which is also recorded in the company's shareholders register.

It is an effective method for the company to stay informed 

about its shareholders.

Physical papers

A share certificate is a piece of paper that mentions the name of the company, the number of shares owned, the date of issue and an identification number. To avoid forgery, their designs contain a number of security features such as legal signatures of company officers, corporate seals, water marks, engine turned designs, etc.
Share certificates were created decades and even centuries ago. The lucky ones that have survived such a long, often remarkable journey through time are now residing comfortable with other companions in a collection or even a museum. Now, share certificates have mostly been replaced by electronic accounts in today's financial networks.

NV Tagalsch  Prauwenveer

Registered share of 600 Gulden, Batavia (Jakarta), 1902

- 

The company operated a proa ferry and ship unloading service

 at Tegal at the north coast of Central Java. 

The rear side (right image) tells us that the share 

was transferred to a new owner in 1920 and later in 1938. 

double-click image to enlarge

Being a shareholder

Shareholders are only liable for the company's debts to the value of their shares. This concept of limited liability is one of the success factors of this type of business organization. Shareholders have voting rights at the company's shareholder meetings. And they can expect to receive a proportional share in the company's profits. When the company dissolves, they receive a proportional share of the liquidation proceeds.

Walther Electronic Aktiengesellschaft

1 Share of 50 DM, issued Gerstetten 1979, with corresponding dividend coupon sheet

This company originates from 1886 when it started manufacturing tools and guns. 

In the 1970s Walther produced electronic calculators and text processors.

-

Many German shares are bearer shares stating that Der Inhaber dieser Aktie 

ist bei der Aktiengesellschaft nach Massgabe der Satzung als Aktionär beteiligt,

which means that the owner (Inhaber) of this share is a shareholder 

of the company in accordance with the company's rules. 

Registered versus Bearer 

When the name of the shareholder is registered in the company's share register, the issued certificate will state his/her name and therefore is called a registered certificate. When it is sold, the name of its owner will be replaced in the company's share register. Either a new share will be issued for the new owner and the old certificate will be cancelled, or the name of the previous owner will be overwritten on the certificate, and a statement of ownership transfer is written on the rear.
Bearer shares, on the other hand, do not mention the owner's name. These are owned by an anonymous "bearer". Such shares can be sold to another party without the knowledge of the company. Bearer certificates have been popular because they were easy to sell (without transfer taxes).

Chicago, Burlington and Quincy Railroad Company

Stock certificate for 100 shares issued in 1903 to Henry Clews & Co.

- 

Almost all American stock certificates are "registered" and state that 

shares are transferable only on the books of the company in person or by attorney...

Dividends

A company usually distributes a fraction of its profits among its shareholders. A certain amount for each share will then be allocated. The income received from the ownership of shares is called a dividend.

• In case of a registered share certificate, only the officially registered shareholder receives dividend payments. Dividend payments were often written on the rear side of the certificate. 
• Bearer certificates have a sheet of dividend coupons. In return for a clipped coupon, a shareholder receives a dividend payment. By counting the number of missing coupons, one can tell how many dividends have been paid out.

Vereenigde Oost-Indische Compagnie (VOC)

In 2010 Ruben Schalk, history student at the Universiteit Utrecht, 

discovered the so far oldest share in the world in the Westfries Archief in Hoorn. 

The certificate dates from September 9th, 1606. 

The second page records the payments of dividend.

Source: Wikipedia.

Amazing, exotic and even weird species

The world of share certificates would certainly have interested Alexander von Humboldt whose work on botanical geography laid the foundation for the field of biogeography. As centuries passed, share certificates adapted to new political, economical and regional conditions and evolved into several types (founding shares, preference shares, et cetera) and local varieties. 

Do they teach scripogeography at Oxford ?

Stationery Industries (Société Anonyme Egyptienne)

Titre Nominatif de 25 Actions de L.E.4

English: Registered certificate for 25 shares of 4 Egyptian Pounds

Alexandria, 1956

-

This "hybrid" share certificate has some bizarre characteristics. 

a) It is a registered certificate, yet there is a dividend coupon sheet attached 

(partly visible in the upper image). 

b) Although it is a registered certificate, the name of the registered shareholder is not mentioned.

Was this an error in the print design?

c) Even though the first owner is unmentioned,  we see on the rear side 

dates (date de la cession) and names of new owners for two share transfers (lower image).

F.L.

Related links

• Book : Shares & Co. - A journey through the world of securities and the history of capitalism, published by Wertpapierwelt
• International Bond and Share Society 
• Wikipedia's Joint-stock-company 
• What is Scripophily ? 

PS 😉 : Who is in 2016 the most known person in the world ? Tip: it is a shareholder.

Trump Hotels & Casino Resorts, Inc.

This certificate looks like and is produced in the same way as a share certificate, but it isn't one. 

It is a specimen certificate. More about specimens in Euratom specimen or proof ?

Image courtesy : Scripophily.com 

Digest of scripophily readings XVI

New online scripophily articles and references, April 2015

Recueil des Sociétés Coloniales et Maritimes 1902

This online "Manual of Colonial and Shipping Companies 1902" consists of the following parts 

1. Colonial companies from Belgium, France, Germany, United Kingdom, Portugal and the Netherlands operating in Africa, Asia, America and Oceania
2. Shipping companies from Belgium, France, Germany, United Kingdom, Italy and the Netherlands
3. List of directors

Compagnie Anglo-Belge de la Côte D'Or

Detail from the certificate below.

Notice the hatching work on the well-muscled man in the front.

Hatching is a technique often used in drawings to suggest volume.

double-click image to enlarge

The book was originally publised in 1902 by the Société d'Études Coloniales de Belgique, now digitized by Google on the Internet Archive. You can browse it online here . The page contains also a link to a 20 MB PDF file, but the online version has better search functionalities.

Compagnie Anglo-Belge de la Côte D'Or

English: Anglo-Belgian Company of Gold Coast (Ghana)

Founder's share, 1899

Printed by Lith. Laporte & Cie., Antwerp

Men of the Pacific Coast

Here is a helpful online reference for the researchers of American Far West history. The full title of the book is : Men of the Pacific Coast containing Portraits and Biographies of the Professional, Financial and Business Men of California, Oregon and Washingthon 1902-1903. It was published by the Pacific Art Company, San Fransisco, Cal. in 1903, and has been digitized by the Internet Archive with funding from Microsoft Corporation. 

Included are portraits and brief biographies of men involved in commerce, manufacture, art, science, literature, finance and religion from the Pacific Coast. You can view it online here. On the same page, there is a link available for downloading the almost 90 MB sized PDF file. In contrary to the above publication, this PDF version offers better results for searching on place names and terms like "railway, gold, diamond, ..".

Men of the Pacific Coast

Left : Wyle C. Morris, Eastern Oregon Railway Company

Right : Amos O. Benjamin, Alaska Company, Inc.

double-click image to enlarge

Scripophily magazine

In addition to the online sources above, the last December 2014 No.96 issue of Scripophily magazine contains the following stories :

• Amazing Western Union Telegraph Co Certificates Found in New York Stock Exchange Archives
• Inter-City Umbrella Renting Company
• Flagler - a Household Name in Florida, about Henry M. Flagler's oil and railway activities
• Scripophily of the 1893 World's Columbian Exposition - Part 2
• In Memoriam The 4%s, about the British 4% Consols
• The Early History of Palm-oil Production in Indonesia and Malaysia - The Story of Adrien Hallet
• Cox's Corner : Assessable Shares
• other periodical topics : society matters, news, bourse reviews, auction reviews, events calendar, member classifieds, book reviews, interviews and lots of pictures of collector friends and scripophily

Scripophily magazine is a publication from the International Bond & Share Society.

F.L.

Signed the Guest book, yet ?

P.S. This post marks 5 years of Franky's Scripophily BlogSpot. 

Thank you all for the visits, remarks and questions. 

I hope to see you again sooner or later.

Cheers !

Franky

Digest of scripophily readings XIV

New online scripophily articles and references, September 2014

The oldest Siemens share is an American one !

Dr. Roland Schmidt tells us a remarkable story about the two Siemens brothers Friedrich  and Werner and their achievements in gas and electrical lighting. Check out his latest post "Oldest Siemens Share Certificate".

American Security Printers Guide
The American Society of Check Collectors (ASCC) is non-profit organization of collectors of checks and other financial documents like drafts, bills of exchange, promissory notes et cetera. See some nice examples here. Interesting for us, the ASCC maintains a Security Printers Guide. You can download a PDF version here. In this list of more than 70 pages, check the 'Type' column for the letter "s" in order to find the names of printers of stock and bond certificates.

Shares for Children
A lot of kids are fascinated by the heroes on the big screen created by DREAMWORKS, Disney and Pixar. At the age of ten, my favorite pastime was playing with MATCHBOX cars. Nonvaleurs News's online issue of last August brings a special about "Children" shares. See here, for the English and there for the German edition. 

The History of Derivatives

The Museum of American Finance organizes a college level class titled The History of Derivatives (17th Century - present). See here for the outline of the program. The Museum offers several 45-60 minute classroom programs, by request only, taught in the education center by museum educators and industry professionals. Standard classes cost $250 and advanced classes cost $500. Classes can accommodate up to 40 people and include museum admission. An overview of other classes can be found here. A good idea for a school trip in New York !

Ten reasons to join IBSS

Scripophily Magazine

The International Bond and Share Society (IBSS) recently announced their last issue of Scripophily magazine on their Facebook page, see here.  I'll come back to this later. In the mean time, in addition to the online sources above, the second last April 2014 No.94 issue of Scripophily magazine contains the following stories :

• World Top One Hundred, the 100 highest prices since IBSS was founded in 1978
• Catalogue of Shares, by the Serbian Numismatics Society
• Stamp Taxes on Nevada Stock Certificates, an online publication (link in the magazine).
• Rare Comstock certificates, about the Wells Fargo Mining Co.
• Cox's Corner : The funny thing about valuing collectibles
• The Ducktown Desert and the Case of Tennessee Copper
• Country Survey : the Netherlands Indies
• Belgian Economic Activities in Romania before the Great War
• other periodical topics : society matters, news, bourse reviews, auction reviews, events calendar, member classifieds, book reviews, interviews and lots of pictures of collector friends and scripophily.

F.L.

P.S. I'm also on Twitter