00 Rio Grande Western Railway Company SPECIMEN Gold Bond

Description

00 Rio Grande Western Railway Company SPECIMEN Gold Bond
Offered for your consideration is a very attractive 00 SPECIMEN bond produced for use by a short-lived western railroad company. The central vignette features a large, ¾ facing view of a period steam locomotive with associated tender, followed by what appears to be a passenger car. This train traverses the scene from left to right, with smoke emanating from its stack and steam escaping near the running gear. An industrial city appears in the background, actively working beside a body of water, with a riverboat at the shore. Immediately above this scene, printed in an arc, is “
THE RIO GRANDE WESTERN
”, with “
RAILWAY COMPANY
” in a frame below the vignette. The denomination, presented on medallions, flanks the vignette, while below the completion of the title is printed “
First Trust Mortgage Four Per Cent Fifty Year Gold Bond
”. This is followed by a lengthy financial obligation which states (in part), that “
The Rio Grande Western Railway Company promises to pay to bearer or to the registered owner hereof, if registered, ONE THOUSAND DOLLARS in United States gold coin, of or equal to the present standard, on the 1
st
day of July, 1939 … and interest thereon at the rate of four per cent. per annum …
”. It further states that “
… This is one of a series of bonds of like tenor of a total issue not exceeding sixteen million dollars … whereof six million nine hundred thousand dollars are to be issued and applied to exchange for or retire first mortgage bonds of The Denver and Rio Grande Western Railway Company … This bond is secured by a mortgage … executed by the said The Rio Grande Western Railway Company to the Central Trust Company of New York, as Trustee, conveying the entire railway property and franchises …
”. It concludes with a statement which reads “
… In Witness whereof, the said The Rio Grande Western Railway Company has caused its corporate seal to be hereunto affixed and attested by the signatures of its President and Secretary, and has likewise caused a facsimile of the signature of its Treasurer to be engraved on each of the annexed coupons, this 1
st
day of July, 1889.
”, followed by the name of the company and two blank lines for the signatures mentioned in the closing sentence. The foregoing material is enclosed in an elaborate border, with mythological creatures at the upper corners. Between these figures, printed in a rectangular frame, is “
United States of America
”, with a fasces and liberty cap in a circle at the center. The denomination can be seen as an under-print within the financial obligation. All of the decorative elements are executed in a lovely green ink, while the vignette and text are presented in black. Attached to the right of this document are 100 interest coupons, each being valued at “
TWENTY DOLLARS
” and bearing the engraved signature of the “
Treasurer
” as ordered. The back of the principal document features a recapitulation of the important information, as well as several lines relating to its transfer, while the back of each coupon bears a geometric design with the numerical order at the center. This piece was printed by the “
FRANKLIN BANK NOTE COMPANY
” as evidenced by their imprint at the bottom center of the principal instrument. As noted earlier, the presently offered item is actually a specimen piece, produced in a very limited quantity and frequently retained by the printer in its archives. The word “
SPECIMEN
” is printed on the lines for the signatures of the company officials and once on the back, with the document and all of the coupons bearing the serial number “
00000
”. Two silver tape alterations are also noted, one above the signature line reading “
The Denver and Rio Grande Western Railroad Company
/
(SUCCESSOR BY ASSUMPTION)
and the other on the back at the “
TRUSTEES CERTIFICATE
” reading “
CENTRAL HANOVER BANK AND TRUST COMPANY
/
TRUSTEE
”.
A very rare and desirable piece from this short-lived railroad. The seller has been unable to locate any examples of this railroad for sale in any format, though four are illustrated on Terry Cox’s excellent website (all appear to be specimens). This is an excellent opportunity to add one to your collection.
Specimens are actual certificates that were printed in very limited quantities for trial or display purposes. Some printers retained them within their permanent archives as the only example of a particular certificate (a sort of template), while others would produce a few examples to be shown to the prospective client to show the quality of work that they could produce. These certificates would normally be stamped “SPECIMEN”, usually in red, and bear a “00000” serial number. They would also feature numerous punch cancellations, generally in sensitive areas involving regular issues (signature lines, coupons). These issues are rare and desirable within the collector’s community.
The Denver & Rio Grande Western Railway was apparently a narrow gauge railway linking Ogden, Utah to Grand Junction, Colorado. In 1889, it became the Rio Grande Western Railway as part of a finance plan to improve the line from narrow to standard gauge, as well as building several branch lines to reach coal fields in Utah (probably the reason for the presently offered bond dated 1889). The Denver & Rio Grande merged with the Rio Grande Western in 1901, finally consolidating in 1908.
Though this piece was never issued, it has suffered somewhat from less than ideal storage. The most obvious issues are the two vertical and three horizontal folds, originally intended for ease of storage. These have adversely affected the strength of the paper in sections, leading to several small separations, especially at the junction with the fold dividing the coupons from the principal instrument. The top fold on the principal instrument is weak, though at this time it is intact (this could be strengthened with archival tape if the purchaser chose to do so). Minor paper wrinkling is noted throughout the document, slightly more pronounced at the corners and along the edges. Several ink smudges are noted in the selvage, apparently done at the time that the bond was printed. Four cancellation holes can be seen on the signature lines on the principal instrument, as well as one on each of the coupons. Soiling is present on the top two horizontal folds, along with the vertical one separating the coupons from the document (these would have been on the outside when the document was closed for storage). Measuring approximately 15⅞ x 28¼ inches, this piece would make a great addition to any railroad bond collection – remember, this may be the only format that this line is available in. Don’t let this opportunity pass you by.
A .95 charge will be added to the winning bid for postage and insurance.
If you have any questions regarding this item, please ask before bidding.
Buy or Bid with Confidence – American Coins & Collectibles President Richie Self has worked 6 years as a paper money grader/authenticator. He has contributed to numerous reference books within the industry, as well as being a co-author of “The Comprehensive Catalog and History of Confederate Bonds, 2
nd
Edition” with Douglas B. Ball, Ph.D., Henry F. Simmons, M.D., Ph.D. and James R. Desabaye. Mr. Self is a life member of the American Numismatic Association, the Society of Paper Money Collectors, as well as numerous regional numismatic associations. He is an authorized submitter to NGC, PCGS, and PMG, a diamond founding member of Coin Dealers Helping Coin Dealers and a supporter of the Industry Council for Tangible Assets. American Coins and Collectibles can be found at many of the state and local coin shows.
American Coins & Collectibles
Shreveport, La.