Beautifully engraved Specimen Gold Bond certificate from Reliance Management Corporation
dated 1929. This historic document was printed by 1929 and has an
ornate border around it with a vignette of an four allegorical figures. This item and is over 77 years old.
OldCompany.com research below from 1929:
RELIANCE MANAGEMENT CORP.: Incorporated in Maryland on Jan. 25, 1929, for the dual purpose, among others, of (a) managing the portfolios of companies organized and financed to carry on an investment trust business in the United States or in foreign countries for which services it is anticipated the corporation will receive junior securities and/or options and/or other rights in such companies in addition to the usual management fees. (b) investing and reinvesting its own funds in a widely diversified list of stocks and bonds selected and supervised by the management organization.
OFFICERS: M. H. Fry, Pres.; W. D. Scholle, C. C. Latour, Vice-Pres.; W. J. Doyle, Jr., Treas.; M. H. Steel, Sec.; R. Stake•, Asst. Treas.
DIRECTORS: H. A. Arthur, Ambrose Benkert, Marshall Forrest, David Friday, M. H. Fry, C. F. Hazelwood, F. J. Leary, J. S. Maxwell, F. A. Willard.
ANNUAL MEETING: First Wednesday in May.
OFFICE: 5 Nassau St., New York.
MANAGEMENT OPTION WARRANTS: Of unissued stock 200,000 shares are reserved against exercise of option warrants issued to management, organizers, bankers and associates, for purchase on or before Feb. 1, 1939, at $30 per share.
INVESTMENT RESTRICTIONS: Not more than 5% of resources may be invested in any one security or security of any one borrower or corporation, excepting United States Government obligations. Not more than 25% of resources may be invested in securities of borrowers or corporations domiciled in any one country except the United States..
ASSETS: Upon completion of sale of 200,000 shares of common stock and $5,000,000 debentures, resources of the corporation will be in excess of $10,000,000.
FUNDED DEBT: 1. Reliance Management Corp., debenture gold 5s, series A: Open indenture; outstanding, series A, $5,000,000. Dated Feb. 1, 1929; due Feb. 1, 1954.
Interest paid F&A 1 at Central Union Trust Co., New York, trustee. Coupon, $1,000; registerable as to principal. Callable as a whole or in part on any interest date on 30 days' notice at 105 to Feb. 1, 1934 incl., and at 14% less each year or part thereof thereafter. Corporation agrees that it will not pay any dividends on its common, nor issue any additional debentures, nor make any further investment in controlled companies if thereby resources of corporation invested in accordance with conditions (a) and (b) below and exclusive of investments in controlled companies would be less than 150% of its outstanding funded and temporary obligations. (a) Not more than 5% of resources may be invested in any one security or security of any one borrower or corporation, excepting United States Government obligations; (b) not more than 25% of resources may be invested in securities of borrowers or corporations domiciled in any one country except United States. Corporation may not issue, assume or guarantee any additional funded obligations unless thereafter resources would amount to at least 180% of such funded obligations then to be outstanding. Decline of net current assets below 125% of funded obligations issued, guaranteed or assumed by corporation shall constitute a default unless within 90 days after notice thereof such net current resources shall be increased to said 125%. Temporary borrowings to the extent that they exceed in the aggregate either 20% of net current resources or 75% of amount to be received by corporation under approved contracts for sale of additional stock or securities shall be regarded as equivalent of funded obligations. Corporation may not mortgage or pledge any of its resources without giving equal security to these debentures, except to secure temporary loans maturing within one year and not exceeding limits specified above. Pennsylvania and Connecticut not exceeding 4 mills, Maryland not exceeding 41/2 mills and California not exceeding 5 mills taxes and Massachusetts not exceeding income tax refunded. Corporation pays normal income tax up to 2%. Listed on Boston Stock Exchange.
ALLOTMENT WARRANTS: Each debenture issued with a warrant, non-detachable prior to Feb. 1, 1930 or such earlier date as may be fixed by corporation except upon redemption of debenture prior to such date entitling holder to receive on or after Feb. 1, 1930 without cost four no par common shares.
STOCK PURCHASE WARRANTS: Each debenture, in addition, issued with a warrant (detachable as provided in allotment warrant) entitling holder. to purchase six no par common shares at any time at $32 per share to Feb. 1, 1930 incl., at $34 to Feb. 1, 1931 incl., at $36 to Feb. 1, 1932 incl., at $38 to Feb. 1, 1933 incl. and at $40 to Feb. 1, 1934 incl., after which date warrants will be void.
Offered ($5,000,000) in Feb., 1929 by Ames, Emerich & Co., Inc., Estabrook & Co. and F. A. Willard & Co., New York at 99% with two warrants as above described.
CAPITAL STOCK: 1. Reliance Management Corp. common: Authorized, 600,000 shares; outstanding, 220,000 shares; no par. Has no preemptive subscription rights. Listed on Boston Stock Exchange. No dividends paid to Mar. 1, 1929.
TRANSFER AGENTS: Central Union Trust Co., New York and State Street Trust Co., Boston. REGISTRARS: New York Trust Co., New York and National Shawmut Bank, Boston.
Offered (200,000 shares) at $30 per share in Jan., 1929 by Ames, Emerich & Co., Inc. and F. A. Willard & Co., New York.
Specimen Certificates are actual certificates that have never been issued. They were usually kept by the printers in their permanent archives as their only example of a particular certificate. Sometimes you will see a hand stamp on the certificate that says "Do not remove from file".
Specimens were also used to show prospective clients different types of certificate designs that were available. Specimen certificates are usually much scarcer than issued certificates. In fact, many times they are the only way to get a certificate for a particular company because the issued certificates were redeemed and destroyed. In a few instances, Specimen certificates we made for a company but were never used because a different design was chosen by the company.
These certificates are normally stamped "Specimen" or they have small holes spelling the word specimen. Most of the time they don't have a serial number, or they have a serial number of 00000. This is an exciting sector of the hobby that grown in popularity over the past several years.Gold Bonds
Bonds were Payable in Gold or Gold Coin to give the impression that they were a more secure investment. In reality, they were not more secure since there wasn't any gold set aside as collateral for these bonds.
On April 5, 1933, President Franklin D. Roosevelt signed Presidential Executive Order 6102 which invoked his authority to make it unlawful to own or hold gold coins, gold bullion, or gold certificates. The export of Gold for purposes of payment was also outlawed, except under license from the Treasury.
On January 30, 1934, the Gold Reserve Act became law which made the ownership of gold illegal except for coins of numismatic value. As a result of this law, Bonds were no longer allowed to be Payable in Gold.