States suing federal government for unclaimed war bonds

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States suing federal government for unclaimed war bonds
$16.7 billion in certificates has yet to be cashed in. Six states now say that Treasury officials haven't tried to find the bondholders or their descendants, and that states have a right to the money.
By David Cho
October 18, 2009

Nearly 70 years ago, the federal government began issuing hundreds of billions of dollars in savings bonds to finance the greatest war effort in the nation's history, with President Franklin D. Roosevelt buying the very first one. But the bonds came with a catch: They wouldn't be paid off for 40 years. As the decades passed after World War II, $16.7 billion worth of bond certificates were either forgotten in dusty attics or thrown out in the trash.

That treasure has remained unclaimed, but a lawsuit could change that. Six states have sued the federal government to get that money, contending that the Treasury Department has done nothing to find the original bondholders or their descendants -- not even send out a letter when it came time for the government to repay the bonds. Moreover, the states say, they have laws that empower them to take unclaimed property for themselves, which would be a welcome infusion of cash at a time of economic distress.Oral arguments are expected to begin in the coming weeks in U.S. District Court in New Jersey, where the lawsuit was originally filed."It's daunting," said Randall Berger, a partner at Kirby McInerney who is representing the states -- Kentucky, Missouri, Montana, New Jersey, North Carolina and Oklahoma. "But the states are doing it because they need the money and because they have these statutes that clearly lay out what happens . . . to unclaimed property."Representatives for the Treasury Department and the U.S. attorney's office, which represents the department, declined to comment.

The case will largely turn on the issue of where the boundaries are between federal and state power, lawyers for the states say. If the court rules in favor of the U.S. government, the Treasury Department could keep money it owes to ordinary Americans. But if the states win, they could continue to tap unclaimed U.S. bonds in the future, in effect establishing a new stream of funding from Washington.Some states, such as California and New York, stand to reap as much as $1.6 billion, according to figures compiled by the states based on federal data. More states haven't joined the lawsuit only because they don't know about it, Berger said.

When the savings bonds were first sold in 1941, the government emphasized a patriotic duty of citizens to support the war effort. The Treasury produced radio musicals urging listeners to buy war bonds, and broadcast networks enlisted celebrities to make the pitch. Newspaper carriers volunteered to sell bonds along their routes. Well after World War II, the Treasury continued to issue the bonds. (Their maturity was reduced to 30 years in 1965.)Because many of the bonds may have been lost over the decades, state officials said, they expect that a substantial chunk of the unclaimed money could end up in their coffers if they win the lawsuit.

The Treasury kept a list of the original addresses of the bondholders but never tried to contact them, according to court documents filed by the states. In many cases, original bondholders died and their rights passed to relatives.State governments employ staff members who are responsible for matching unclaimed property -- everything from land to checking accounts -- with the rightful owners. But state officials wouldn't pursue the bondholders before the federal government provided the unclaimed proceeds. The Treasury balked, and in 2004 the states sued.In April, Sen. John D. Rockefeller IV (D-W.Va.) introduced a bill to have the Treasury pay states $30 for every bondholder they find."Sen. Rockefeller believes we should return unclaimed bonds to their rightful owners, putting money in the pockets of families during tough economic times," said spokeswoman Rebecca Gale. "He introduced this legislation with the support of state treasurers so the states would have a chance to review and find the rightful owners."No companion bill has been introduced in the House. For now, it appears, it will be up to the federal courts to settle the matter.

To the states, the issue is simple. "The savings bonds that were issued starting some 60 years ago weren't there to benefit the federal government if the bonds were unclaimed," Montana Atty. Gen. Steve Bullock said.Cho writes for the Washington Post.

Rare combination of Early Mining, Motor Cars and Music.

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Big Four Gold and Copper Mining (Rare find signed by early car maker John W. Henney and Remick Music Corporation Founder, Jerome H. Remick) - Leadville, Colorado 1899

Rare combination of Early Mining, Motor Cars and Music.


Beautiful stock certificate from the Big Four Gold and Copper Mining issued in 1899. This historic document has an ornate border around it with 3 vignettes: top center of mill buildings in rugged canyon with river and steam train; top left of 3 miners inspecting ore sample; top right of miners working underground. This item has the signatures of the Company’s President, Jerome H. Remick and Secretary, John W. Henney and is over 110 years old. The certificate was issued to John W. Henney and was signed on the back in 1927 by John W. Henney, Jr., as Executor of John W. Henney, Sr.'s Estate.

World War II U.S. Savings Bonds are getting hot!

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Beautifully engraved uncancelled large size United States War Savings Bond issued by the United States Government in 1942 and 1943. This historic document was printed by the Bureau of Engraving and Printing and has an ornate border around it with a vignette of President Grover Cleveland. $100 uncancelled war savings bonds are very scarce, since if they were redeemed by the payee, they would be worth close to 5 times face value. This item has the printed signatures of the U.S. Secretary of the Treasury, Henry Morgenthau and is over 66 years old. The bond has one center fold from original mailing. EF+.

Station fire victims call for U.S. probe into Forest Service's response

From L.A. Times - September 29, 2009

Station fire victims call for U.S. probe into Forest Service's response
Residents are critical of the agency's decision to scale back an attack on the blaze on the night before it began to burn out of control. Two firefighters were killed in the wildfire.

Big Tujunga Canyon residents and others reeling from the Station fire called Monday for a federal investigation into what they termed a poor initial response to the deadly blaze by the U.S. Forest Service ."It was beyond irresponsibility, beyond neglect," said Cindy Marie Pain, who lost her Big Tujunga Canyon home to the fire, which broke out in the Angeles National Forest on Aug. 26.

Pain and other residents said they were outraged by a Times article Sunday that reported the Forest Service had underestimated the danger posed by the fire and scaled back an attack on the flames the night before the blaze began to rage out of control."When it's small, that's when you jump on it," said Bronwen Aker, a Vogel Flats resident who set up a for fire victims.Her home was spared, but those of many of her neighbors were destroyed."A lot of residents are incredibly embittered about the way it was handled," Aker said.

Bob Kerstein, who lost a cabin and a house on gold-mining property that his family owns in the forest, said Congress should investigate the Forest Service's tactics."It's crazy what happened here," he said. "There are a lot of heroes in this -- the firefighters who were on the line. But the people who should be held accountable are the people who made the decision not to put the fire out in the 48 hours after it started."

Leo Grillo, an actor who runs an animal sanctuary that was threatened by the blaze, said any investigation should also examine the lack of a more aggressive air assault later in the fire, especially when it appeared to have flagged on Day Five."They had the golden opportunity to put it out and they didn't," he said.

The Times reported that the Forest Service had been confident that the fire was nearly contained on the first day, and the agency decided that evening to order just three water-dropping helicopters to hit the blaze shortly after dawn on its second day -- down from five on Day One, documents and interviews show.

The Forest Service also prepared to go into mop-up mode with fewer firefighters on the ground, according to records and officials.Early in the morning on the second day, the Forest Service realized that three helicopters would not be enough and summoned two more later in the morning, Angeles Forest Fire Chief David Conklin said. More engine companies and ground crews were also deployed, but it would prove too late.On Day Two, the Los Angeles County Fire Department lent the Forest Service a heli-tanker but denied a request for another smaller chopper -- an action that residents say should be reviewed.

Chief Deputy John Tripp, the No. 2 official in the county department, said he withheld the second aircraft because he did not believe the fire was endangering neighborhoods near its suspected ignition point above La Cañada Flintridge, and because the county must hold on to some helicopters for other emergencies.The Station fire would become the largest in the county's recorded history, blackening more than 160,000 acres of the forest, destroying dozens of dwellings and killing two county firefighters who died when their truck fell off a mountain road.Conklin and Tripp told The Times they probably will change their procedures so that the two agencies immediately stage a joint assault on any fire in the lower Angeles. Several foothill residents have expressed suspicions that the Forest Service let the fire burn early on as a way to clear dry brush, and that the decision not to bring in more aircraft and firefighters for the second morning was based on cost concerns.

Forest Service officials have said both notions are false.

On Monday night, residents packed a Tujunga meeting hall to ask fire officials if more could have been done to save homes. The gathering became contentious at times.Tripp said the county did the best it could without putting firefighters' lives in jeopardy."If anybody thinks we take this lightly, we don't," he said in an emotional voice.

But Rob Driscoll, whose Vogel Flats home burned, was not satisfied."We're angry and we need better answers than we've gotten tonight," Driscoll said.

Scripophily Historic Stock Calendar

2010 Historic Stock Calendar - Expected Delivery Date is September 15, 2009

Once again, we are offering our Wall Street Scripophily Calendar with each month featuring a unique certificate in full color. This is a perfect gift for customers, employees, friends, collectors, students and everyone else. The actual size of the calendar is 8 1/2" x 11" ( perfect size for mailing ) with 28 color print pages including the cover. Months include December 2009 to December 2010. Expected delivery September 15, 2009.

Scripophily.com - The Gift of History

Bob Kerstein, CPA Founder and CEO, Scripophily.com

American Institute of Certified Public Accountants - Journal of Accountancy - September 2009

Bob Kerstein, CPA
Founder and CEO, Scripophily.com

Stock and bond certificates, to most people, represent a measure of financial investment in a company. The kinds of stocks and bonds I deal with represent insight into financial history. People like me who buy them are scripophilists, collectors of historical stock and bond certificates.

I remember the day in 1990 when I caught the scripophily bug. I had moved to the Washington, D.C., area to head up the finance and technology functions of a satellite communications company. One weekend, I went to a Civil War collectibles show and visited a booth where they were selling Confederate bonds bearing an image of Stonewall Jackson. I laughed, because I thought the paper was worthless. Then I began to ponder the history behind the certificates. I realized the paper was part of the fabric of U.S. and financial history. I got hooked; I became a collector.

One of my favorite certificates—and one I will never sell—is a certificate issued on Oct. 29, 1929, the date of the stock market crash. The company name—Shadyside Operators—says it all! To me, this certificate is symbolic of the sad financial history of the ’20s with its get-rich-quick schemes and the lack of appropriate government control.

My hobby began growing exponentially in the early days of the Internet, when people were just starting to consider the Web’s commercial applications. Because I had been involved as chief financial officer for technology companies, I quickly realized the potential for ecommerce, so I acquired the domain name, Scripophily.com, and set up a Web site to sell certificates in my free time. Eventually, I realized that my part-time hobby could be a lucrative full-time business, and I made the transition to become my own boss. That was in 1998. Today my company has 15,000 items available for trade. I also operate a complementary business, OldCompany.com, which researches the redeemability of certificates. Many of our clients are CPAs and attorneys.

Over the years, because of the expertise I have developed in scripophily, CNBC has interviewed me when stock in a company was being discontinued because of merger or scandal. When such scandals hit Enron, Worldcom, and Martha Stewart, it was a novelty that I discussed on the air; today, unfortunately, this has become more commonplace. People are understandably more concerned about their retirement instead of collectibles.

If I were to describe myself, I would say I am a technology entrepreneur grounded in history. Although that sounds far removed from accounting, it actually is not. Getting involved in technology was natural for me.

Like many young accountants, I started in public accounting at a Big Eight firm. Working in the firm’s Beverly Hills, Calif., office was a great training ground and a place where I developed good contacts. After three and a half years, however, I realized I wanted to be directly involved in a business. About that time, I met my wife, Susana, whose entire family was involved in the motion picture industry in Southern California. For my first private-sector job, it seemed natural for me to work for Warner Bros. It was fun being in the periphery of filmmakers, but after a few years, I realized working in financial reporting wasn’t as exciting as working on the production side of the business. When a former client asked me to join a cable TV company as controller, I jumped at the chance to get into the financial area of business management.

From cable TV, I was invited to join a then-emerging industry—cellular communications, whose potential intrigued me. That position led to the opportunity at the satellite communications company in Washington.

My career has been highlighted with opportunities to mold the financial and technology functions of related companies—for many years for other businesses, and now for myself. I owe a lot to those who gave me opportunities to do new things, especially to some of my mentors, who taught me how to focus on the big picture.

I love accounting; it got me started. And because of it, I have been able to pursue the things that not only come naturally to me, but are also my passion.


Scripophily.com - The Gift of History

Scripophily.com - Quality selections at competitive prices

Sample of latest quality items added to the Scripophily website. don't be fooled by imatations, we only offer authentic certificates. We are memebers (since 2004) of the Better Business Bureau and have an A+ Rating.

Louisville and Northern Railway and Lighting Company (signed By Samuel Insull As President) - Indiana 1907$99.95 - Beautiful certificate from the Louisville and Northern Railway and Lighting Company issued in 1907. This historic document was printed by the Columbian Banknote Company and has an ornate border around it with a vignette of electric streetcar flanked by a lightbulb right and left of the title. This i...

Saint John Mechanics' Whale Fishing Company - New-Brunswick, Canada 1836$995.00 - Beautiful certificate from the Saint John Mechanics' Whale Fishing Company issued in 1836. This item has the signatures of the Company's President, Thomas Nisbet and Secretary, A. Robertson and is over 173 years old.Issued to W. Isaac Olive of Carlton, for fifteen shares at seven pounds and ten shil...

Speedway Park Association - Illinois 1915$995.00 - Beautiful certificate #14 from the Speedway Park Association issued in 1915. This historic document was printed by the Weber Lithograph Company and has an ornate border around it with a vignette of an auto Racing Track surrounded by a grandstand with a 18 hole golf course in the center. This item ...

Yellowstone Park Telephone and Telegraph Company First Mortgage Gold Bond - Bozeman, Montana / Wyoming - 1901$269.95 - Beautiful certificate from the Yellowstone Park Telephone and Telegraph Company issued in 1901. This historic document was printed by the Western Banknote Company and has an ornate border around it with a vignette of an allegorical woman reaching up into the heavens with the globe behind her. This i...

Corralitos Company (Issued to and signed twice by Edward Shearson of Shearson/Lehman ) - Colorado 1922$795.00 - Beautiful certificate #154 from the Corralitos Company issued in 1922. This historic document was printed by the Franklin Banknote Company and has an ornate border around it with a vignette of a sheep. This item has the signatures of the Company's President, E. Townsend Irvin and Secretary, Charles ...

Irish Free State Hospitals' Sweepstake Ticket - Ireland 1937$139.95 - Beautiful Sweepstake Ticket from the Irish Free State Hospitals issued in 1937. This historic document was printed by the Dollard LTD. Company and has an ornate border around it with a vignette of an allegorical woman. This item has the printed signature of the Company's Managing Director, J. Wyrath...

Turbine Motor and Carriage Co. - Maine 1899$199.95 - Beautiful certificate from the Turbine Motor and Carriage Co. issued in 1899. This historic document was printed by the Lyman B. Brooks Company and has an ornate border around it with a vignette of an allegorical woman. This item has the signatures of the Company's President, L. M. Foster and Treasu...

African Land and Investment Company Limited (Became Gold Fields of South Africa) - London, England 1902$59.95 - Beautiful certificate from the African Land and Investment Company Limited issued in 1902. This historic document was printed by the Henderson & Spalding Printers Company and has an ornate border around it with a vignette of the company name. This item has the signatures of Members of the European C...

Basic City Chilled Roll and Iron Works - Basic City / Waynesboro, Virginia 1895$139.95 - Beautiful certificate from the Basic City Chilled Roll and Iron Works issued in 1895. This historic document was printed by the F. Murphy's Sons. Company and has an ornate border around it with a vignette of Virginia State Seal flanked by supplies and farming implements. This item has the signatures...

Brazilian Traction, Light and Power Company, Limited - Canada 1956$79.95 - Beautifully engraved certificate from the Brazilian Traction, Light and Power Company, Limited issued in 1956. This historic document was printed by the British American Banknote Company and has an ornate border around it with a vignette of an allegorical man carrying a torch next to a generator. Th...

Calumet Heights Water Company - Calumet, Michigan 1933$49.95 - Beautiful certificate from the Calumet Heights Water Company issued in 1933. This historic document was printed by the Goes Company and has an ornate border around it with a vignette of an eagle. This item has the signatures of the Company's President and Secretary, and is over 76 years old. Cert...

Chillian Northern Railway Company Limited - London 1913$69.95 - Beautiful certificate from the Chillian Northern Railway Company Limited issued in 1913. This historic document was printed by the Bradbury Wilkinson & Company Engravers and has an ornate border around it with a vignette of a train. This item has the signatures of the Company's Director, A. H. Bamiu...

Confederate States of America $1 -- T71 -- Richmond, Virginia 1864$69.95 - Beautiful certificate from the Confederate States of America issued in 1864. This historic document was printed by the Evans and Cogswell Company and has a border around it with a vignette of Clement C. Clay. At the time this was being circulated, he was an agent in Canada. This item is over 145 yea...

Confederate States of America $100 -- T65 -- Lucy H. Pickens - Richmond, Virginia 1864$99.95 - Beautiful certificate from the Confederate States of America issued in 1864. This historic document was printed by the Keatinge & Ball Company and has an ornate border around it with a vignette of "Women of the South" represented by Lucy H. Pickens. Two soldiers at lower left, bust of cabinet member...

Confederate States of America $100 T-39- Richmond, Virginia 1862$129.95 - Beautiful certificate from the Confederate States of America issued in 1862. This historic document was printed by the J. T. Paterson Company and has a border around it with a vignette of a train Straight Steam Train, Milkmaid. Montgomery Depository Stamp on verso. XF. This item is over 147 years ...

Confederate States of America $5 -- T69 -- Capital of the Confederate States (Virgina State Capitol) - Richmond, Virginia 1864$69.95 - Beautiful certificate from the Confederate States of America issued in 1864. This historic document was printed by the Keatinge & Ball Company and has a border around it with a vignettes of the Capital of the Confederate States (Virgina State Capitol) in center. Bust of Treasury Secretary Christophe...

Confederate States of America - Tennesse State Capitol - $20 -- T67 -- Richmond, Virginia 1864$69.95 - Beautiful certificate from the Confederate States of America issued in 1864. This historic document was printed by the Keating & Ball Company and has a ornate border around it with a vignette of the Tennesse State Capitol, Nashville. Bust of Vice President Alexander Stephens at right. This item is ...

County of Lackawanna Bond (vignette of a dog ) - Pennsylvania 1878$99.95 - Beautiful $100 Bond Certificate #5 from the County of Lackawanna issued in 1878. This historic document was printed by the Pelican Print Company and has an ornate border around it with a vignette of a dog laying down on locked box. This item has the signatures of County Officials and is over 131 yea...

Eastman Kodak Company - New Jersey$49.95 - Beautiful certificate from the Eastman Kodak Company. This historic document was printed by the Data Business Forms Company and has an ornate border around it with the company title centered on the top. This item has the printed signatures of the Company's Chairman & Chief Executive Officer, and Tre...

German American Real Estate Title Guarantee Company - New York 1901$149.95 - Beautifully engraved certificate from the German American Real Estate Title Guarantee Company issued in 1901. This historic document was printed by the American Banknote Company and has an ornate border around it with a vignette of Lady Liberty holding a flag with her sword drawn. This item has the...

Government of the Province of Nova Scotia Consolidated Stock - Dominion of Canada 1927$49.95 - Beautiful certificate from the Government of the Province of Nova Scotia issued in 1927. This historic document was printed by the Waterlow A. Sons. Limited Company and has an ornate border around it with a vignette of the Nova Scotia Coat of Arms. This item has the signature of the Government's Dep...


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Scripophily.com - We buy and sell collectible stock and bond certificates

Scripophily.com is offering a Free General Motors Stock Certificate on all orders and a Free Real Ten Trillion Dollar Bill (Really) from the Reserve Bank of Zimbabwe on all orders over $200.

Scripophily - The Gift of History

Norman Mabika - Zulu Norman

In Memory of Norman Mabika who passed away on August 15, 2009

ZuluNorman.com is dedicated to our Animal Guide, the World Famous Zulu Norman

Bre-X Minerals Ltd. Scarce Stock Certificate - Huge Canadian Gold Mining Fraud

The Bre-X Minerals Ltd. Company was involved in one of the largest stock swindles in history. Its Indonesian gold property which reportedly contained over 200 million ounces was proven fraudulent. The company touted Bre-X's properties in the Busang area of East Kalimantan, Indonesia, as holding the richest gold deposit ever discovered. In early May 1997, independent experts confirmed that, in fact, no gold exists at Busang. The stock was once valued at over $280 a share.

Scripophily.com - The Gift of History