West Shore Railroad - 400 Year Junk Bond

The earlier generated topic about the West Shore inspired me to search for state-wide maps from the 1950-1960 era. The search was not a success. Railfan.net provided local routes. However, in my travels online, I did manage to find something strange.

http://www.scripophily.net/wesshorrail.html

: A 400 year junk bond first issued in 1951, payable in 2361. That's amazing, and expensive! It's extremely detailed and would only make a nice conversation piece since there would be no chance for me to cash them in.

I know the sellers are calling this a "junk" bond -- but actually it was (before cancellation) a long-term, first mortgage coupon instrument, and not junk at all. Junk bonds are called such because they are not all that secure, but they do pay higher rates to the holder. More risk, more payback -- but I think they are usually short-term.

The West Shore bonds were very secure indeed -- paying 4%, period after period, for much longer than any of us lives! All were bought back and cancelled when New York Central formally merged with the previously 475-year-leased, separate corporate entity of West Shore Railroad.

I have one of these framed hanging in my office. It's a work of art, in my opinion.

I bought a similar New York Central and Hudson River stock certificate on Ebay for my brother last Christmas. It was even better because it was signed by Chauncy Depew, president of the company, future Senator, and the namesake of our hometown, Depew, NY (where the NYC, Erie, Lackawana, and Lehigh mainlines all came within one mile of eachother).

There's another certificate on Ebay now for a mere $11 if anyone's interested

http://cgi.ebay.com/ws/eBayISAPI.dll?Vi ... eName=WDVW

There are still a few interesting bonds out there. There are New York & Harlem RR bonds that are still valid that were issued and 1893 that come due in 2043! They still trade from time to time.

By the way NY&H stock is still out there and it pays an $8 a year dividend. Last time I saw a share trade, it went for $150.

At one time, as recently as 30 or 40 years ago I belive, the SEC required that there be at least one "live" signature on a stock or bond certificate.

As it was impractical to have each certificate signed individually by the corporate officer, financial printers early on devised a pantograph device, affixed over a large table. The pantograph held many (100 or more??) pens appropriately spaced over the table and an equivalent number of certificates were placed on the table. The signer manuevered a handle on the pantograph to have each pen sign its respective certificate simultaneously tracking the movement of the handle.

Eventually the rules changed to allow facsimile signatures and this practice disappeared. I wonder if an examples of this ingenious device were preserved?

njmidland wrote:There are still a few interesting bonds out there. There are New York & Harlem RR bonds that are still valid that were issued and 1893 that come due in 2043! They still trade from time to time.

By the way NY&H stock is still out there and it pays an $8 a year dividend. Last time I saw a share trade, it went for $150.

Any idea what exchange they trade on if any?

On the Pink Sheets

www.pinksheets.com