Collectible Investments: U.S. auto stock certificates

The Four Wheel Drive Auto Company was founded in 1909 by Otto Zachow and William Besserdich, who developed and built America's first 4x4 vehicle (1908). The Wisconsin firm later produced over 20,000 of its four wheel drive Model B trucks for use by the British and American armies in World War I. 4WD vehicles were made with a track width of 4 feet 8½ inches, so they could be used on a standard gauge railway line by simply changing the wheels. The first scan shows a 1929 certificate for $100 shares in the company. As an investment, the certificate has been a steady gainer. Twelve years ago, it would have cost you $20. Today, it's a $100 item. That's a gain of 400%.

Stewart-Warner Corporation was another mid-western outfit that got going just before the first war. The company became one of the most recognized manufacturers of vehicle instrumentation in America, producing a wide variety of automotive products at a massive complex on the north side of Chicago. The firm was ultimately acquired by British Tire & Rubber, in the 1980s. The elegant olive-green certificate illustrated dates back to the late 1930s. It is a specimen, printed by the Republic Bank Note Company. This piece has also been a solid twelve-year gainer, moving from $5 to $70. That's a 1300% improvement.

The next sample is a 1954 specimen certificate for shares in the B.F. Goodrich Company. The firm was founded in the late 1800s by one time Union Army surgeon, Dr. Benjamin Franklin Goodrich. One hundred years later, it was one of the largest tire and rubber manufacturers in the world. The tire line was sold to Michelin in 1988, allowing the firm to concentrate on aerospace manufacturing. The company name was changed to Goodrich Corporation (NYSE: GR), in 2001. The certificate vignette features a pair of allegorical figures and the company's BFG logo. The twelve-year gain for the piece is 333% ($30 to $130).

The fourth scan shows a dark blue 1954 certificate for 100 shares in the Studebaker-Packard Corporation. The firm was created that year, when the Packard Motor Car Company of Detroit purchased the Studebaker Corporation of Indiana. Financial difficulties on the Studebaker side finally sank the company's vehicle business, in 1958. The firm carried on through subsidiaries and acquisitions until 1979, when it was absorbed by McGraw Edison. The certificate was printed by the American Bank Note Company, a historically important engraver of currencies, postage stamps and stock/bond documents. This specimen is up 1300% ($10 to $140) in twelve years.

The final scan shows a handsome 1960 certificate for 1000 shares in the American Motors Corporation. It bears the signature of company president George W. Romney, a future governor of Michigan (1963-1969), Presidential hopeful (1968) and U.S. Secretary of Housing and Urban Development (1969-1973). The firm was formed by the 1954 merger of the Nash-Kelvinator Corporation and the Hudson Motor Car Company. At the time, it was the largest corporate merger in U.S. history. AMC lasted until 1987, when it was bought out by Chrysler. The vignette features allegorical figures in front of a large gear. Twelve years ago, a canceled sample would have cost you $15. Now, it sells for $90 (+500%).

Auto stocks often represent the means by which some of the most remarkable technical pioneers in American history were funded. Sometimes, though, they just represent low Wall Street cunning. In fact, some certificates are now worth much more as collectible items than they were ever worth as financial instruments. Consider the old Ford Tractor Company ploy. In 1917, the firm issued stock and took in much money. The trouble was that the outfit had nothing to do with the famous Michigan auto maker. The firm was established by a group of Minnesota businessmen, who took advantage of the fact that the public knew Henry Ford was developing a good, cheap tractor. They hired another fellow named Ford and formed their own company, but only built a few tractors. Copies of the 1917 stock certificate are rather rare. Twelve years ago, you would have paid about $75 for one of them. Now, a copy will set you back the better part of $400. That's a gain of more than 400%, demonstrating that old scandal still sells.

Larry Schutts has invested in high grade collectibles for over twenty years and recently opened an online Collectible Investment Store.