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New York Mortgage Endorsement Stamps

 
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Pillar Of The Community
United States
1817 Posts
Posted 02/29/2024   9:51 pm  Show Profile Bookmark this topic Add GregAlex to your friends list Get a Link to this Message
This is an exceedingly obscure topic, but in 2019 Michael Mahler managed to write a 200+ page treatise on the subject (also covering Secured Debt Tax and Tax On Investments stamps). This can be downloaded for free here:
https://scripophily.org/wp-content/...l-Mahler.pdf

I happened upon one of these Mortgage Endorsement stamps on a bond for the West Shore Railroad. This particular example was issued in Greene County, which is not recorded on the spreadsheets at the back of the book. I don't know if that gives this any sort of premium, but there is also something odd going on here. The bond was issued in 1917, while the attached tax stamp is dated 1912.

Thoughts?




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Valued Member
United States
249 Posts
Posted 03/01/2024   02:41 am  Show Profile Bookmark this reply Add jossanders52 to your friends list  Get a Link to this Reply
The date on the stamp looks to me like 1917.
It is a "sloppy" 7, written in a hurry.
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Pillar Of The Community
United States
764 Posts
Posted 03/01/2024   3:12 pm  Show Profile Bookmark this reply Add Germania to your friends list  Get a Link to this Reply
How did this Mortgage Bond work? It states that the principal is due January 1, 2361 [444 years!]. Not as long as the Guinness lease, but still impressive. And the West Shore Railroad is now CSX which is still in business. Is the bond still valid?
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Pillar Of The Community
United States
1817 Posts
Posted 03/01/2024   3:58 pm  Show Profile Bookmark this reply Add GregAlex to your friends list  Get a Link to this Reply

Quote:
The date on the stamp looks to me like 1917.
It is a "sloppy" 7, written in a hurry.


I'm not convinced. The top of the "2" in the month date is arched in the same way. But even it it were so, the dates still do not jibe. The stamp is dated June 26 and the bond is July 23.


Quote:
How did this Mortgage Bond work? It states that the principal is due January 1, 2361 [444 years!]. Not as long as the Guinness lease, but still impressive. And the West Shore Railroad is now CSX which is still in business. Is the bond still valid?


You spotted that! I was also quite amused to see these were 400-year bonds. The story behind it is this. The West Shore started out as a competitor of the New York Central, but in the early 1880s the NYCRR drove it into bankruptcy with a price war. Then the NYC bought the WS and leased its tracks for a period of 475 years! The bonds show a principal due date of 2361, the longest maturity of any U.S. bond I'm aware of. Since coupon bonds had to cover this entire period, you can sometimes find these with page after page of attached coupons.



But alas, the bond is not valid, you can see the punch cancellations.
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Edited by GregAlex - 03/01/2024 4:01 pm
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