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Need Help With Illegal Usage (?) On This Colorado Midland Railway Bond

 
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Posted 08/10/2019   09:40 am  Show Profile Check revenuecollector's eBay Listings Bookmark this topic Add revenuecollector to your friends list Get a Link to this Message
This is an odd one. Purchased as a gamble/curiosity just to see more. Could be fabricated, although I'm not sure to what end. The price I paid wasn't substantially more than what the bond would otherwise bring.

It's an attractive $1,000 railroad bond with a 50-cent battleship documentary affixed, with a 2-line 1899 handstamp cancel. It also has an orange British 1-pound embossed revenue stamp at left, also (I believe) dated 1899.

The odd aspect is the block of 6 1-cent Franklin postage stamps at bottom left, with pen manuscript cancel.

Some things I discovered:

1. Per Wikipedia, the Colorado Midland Railway ceased operations in 1918, well before the postage stamps were issued.

2. The block of 6 is strategically placed on top of a large-format violet handstamp which appears to be related to a court case or dissolution of the company. I've included an image of the handstamp from another example of the bond I found online. All examples of this bond I've been able to find online have this same handstamp, and all bonds are uncancelled.

3. The manuscript cancel on the postage stamp block, per Retroreveal, is "Oct 4 1927" which aligns with the presence/absence of the attached biannual bond coupons. Coupons prior to 1928 are not present, but coupons from January 1928 through July 1947 are still affixed.

So... what is going on here? Would interest still have been paid on the bond following dissolution of the company in 1918? What happened in 1927 to precipitate the affixing and dating of the stamps... part of an estate perhaps?

Images and links to high-resolution versions follow.



Link to High-res version: https://revenue-collector.com/color...midland1.jpg





Link to High-res version: https://revenue-collector.com/color...midland2.jpg





Link to High-res version: https://revenue-collector.com/color...midland3.jpg





Link to High-res version: https://revenue-collector.com/color...midland4.jpg



Closeup of UK embossed revenue:




Closeup of 50-cent battleship documentary:




Closeup of postage stamp block overlaying violet handstamp:




Manuscript cancel per Retroreveal:




Other examples of this bond found online and the handstamp:















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Posted 08/10/2019   09:59 am  Show Profile Bookmark this reply Add revcollector to your friends list  Get a Link to this Reply
Part of it was sold to the Midland Terminal Railway which was still in operation at the time. Possibly this relates to whether the bond still had some value. Although 6 cents seems an odd rate.
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Posted 08/10/2019   11:37 am  Show Profile Bookmark this reply Add stallzer to your friends list  Get a Link to this Reply
The date on it shows 1918, 4 years before the 4th bureau stamps were issued. Since I know very little about these documents and usages is that normal to apply stamps 4 years later?
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Posted 08/10/2019   12:05 pm  Show Profile Bookmark this reply Add cjpalermo1964 to your friends list  Get a Link to this Reply
The corporation must have continued as a legal entity after the end of railroad operations in 1918. Ceasing running trains and dissolution of the corporation are different. Railroads owned large tracts of real estate that could have taken 9 years to sell off, and often had other businesses that could have generated income.
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Posted 08/10/2019   12:30 pm  Show Profile Bookmark this reply Add SPQR to your friends list  Get a Link to this Reply
Can you post the text of the purple handstamp? I can't read it from the images.
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Posted 08/10/2019   12:43 pm  Show Profile Bookmark this reply Add stallzer to your friends list  Get a Link to this Reply
Thanks Cj, makes sense. Rev, you certainly have an eye for these documents. These are like works of art and very appealing.
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Posted 08/10/2019   2:52 pm  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply
The text of the violet handstamp is very difficult since I can only use the Internet images because my example is covered by the block. Here's a stab at it:


Quote:
$[dollar amount] paid on within Bond and appurtenant
purpose due January 1, 1913 and July 1913,
as a credit on account of proceeds of foreclosure
sale and/or ???? of the United States District
Court of the District of Colorado, entered ???
???? 17, 1917, in case entitled Central ???
Company of New York, as Trustee vs. The Colo-
rado Midland Railway Company et al. No. 60??
By authority of said Court,
Dated April 22, 1918,
WILLIAM L. DAYTON, Special Master
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Posted 08/10/2019   3:29 pm  Show Profile Bookmark this reply Add SPQR to your friends list  Get a Link to this Reply
Thanks for the language of the handstamp. I can't explain the 4th bureau issue stamps.
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Posted 08/12/2019   10:15 am  Show Profile Bookmark this reply Add cjpalermo1964 to your friends list  Get a Link to this Reply
A couple of suggested revisions based on what I am seeing.

$[dollar amount] paid on within Bond and appurtenant
coupons due January 1, 1913 and July 1913,
as a credit on account of proceeds of foreclosure
sale and Order of the United States District
Court of the District of Colorado, entered February
17, 1917, in case entitled Central ???
Company of New York, as Trustee vs. The Colo-
rado Midland Railway Company et al. No. 6046.
By authority of said Court,
Dated April 22, 1918,
WILLIAM L. DAYTON, Special Master


Basically the stamp is telling all bondholders that a property owner foreclosed on Colorado Midland property and was paid some or all of the interest owed to it from the foreclosure rather than in cash. The implication to the buyer of one of the bonds is that CM might not be able to pay out on the remaining coupons. The court order probably required notice to all parties out of fairness, although the fact that a foreclosing property owner was senior in terms of collecting on debts is not surprising today. The foreclosure probably came from default on a mortgage for real property held by Central whoever.
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