JG / Old Certificates,
Jim, I'm not familiar with the companies you mentioned. Something that might help, though, was a post I saved from misc.invest.stocks in June of '96, posted by Jacques Ferron. I haven't had occasion to try out his advice, but it looks reasonable enough, provided you're prepared to put in some time.
"There is one organization I have heard of that specializes in this work. As
far as I know, they work on commission: if the stock isn't worth anything,
there is no charge to you. Otherwise, their percentage is fairly high, but
presumably you would not mind paying a share of this "found money".
They are located in Montreal but I believe they cover U.S. securities as well.
The name is Stock Search International and their phone number is 514-256-9487.
Alternately, if you can spare the time, you can go to your public library and
look for a very hefty and thorough reference book named something like
"Registry of Defunct Corporations". Sorry I can't recall the exact name, but
the librarian should be able to guide you.
Then all you have to do is look up each of your securities in alphabetical
order (making sure you look up the *exact* same name as on your certificate --
e.g. Bromo Lithia Inc. would not be the same as Bromo Lithia Company).
For each certificate, this book should tell you right away if it went bankrupt
and is worthless; otherwise, chances are you will be led on a merry chase,
especially in the case of certificates dating back to the 1900's. For example
"Company ABC merged in 19xx with DEF Inc., 1 new share for each 5 old shares";
then you will have to look up "DEF Inc." and probably find that it too was
merged into something else and so on until the successor went belly up -- or
turned into a corporation that is recognizable and currently listed on a stock
exchange.
Keep track of the exchange rates at each step so that you can tell exactly how
many current shares you are entitled to. Don't rely on brokers and trust
companies to do this for you -- in my experience they make a lot of "mistakes"
in their favor.
Another point to keep in mind is that in many cases, dividends have been paid
through the years and are sitting somewhere waiting to be claimed. Such
payouts can add up to more that the stock itself.
If and when you reach an existing company, take down the name and address of
the Transfer Agent. Write them enclosing a PHOTOCOPY of both sides of your
certificate and they will send you further instructions. Alternately, you
could bring the certificate and the information you have found to your stock
broker, if you have one; theoretically thay could handle this for you free of
charge, especially if you already are a very good client. However my
experience trying this (through Quick & Reilly) has been very unsatisfactory.
They just returned the certificate suggesting that it was worthless (which it
most definitely was not) AFTER rubberstamping in their own name as transfer
attorney, which made it vulnerable to loss or theft, yet a lot harder to cash
in by the rightful owner.
This sounds involved and it is, but I would guess that your chances are quite
good that at least one of your certificates will make it worth your while.
You may even have a fortune there!
One caution: assuming that the shares are registered in a name other than
yours, you will eventually have to prove that you are the rightful owner. This
may imply getting copies of wills, etc. You may need a lawyer, which can cost
you more than it will bring in -- so first find out what the certificates are
worth. Conversely, if the certificates are endorsed on the back with the
registered owner's name, they are fully negotiable, but guard them carefully:
they are just like cash. |
