Yale Express System, Inc.
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Product Details
CompanyYale Express System, Inc.
Certificate Type
Class A Stock
Date Issued
Specimen, circa 1960's
Canceled
Yes
Printer
De La Rue Bank Note Company
Signatures
Machine printed
Approximate Size
12" (w) by 8" (h)
Images
Show the exact certificate you will receive
Guaranteed Authentic
Yes
Additional Details
NA
Historical Context
Yale Express System, Inc. was founded in New York in 1938 by Benjamin Eskow.
Eskow built Yale into a successful trucking concern by offering shippers special services - like late pickups and weekend deliveries. In 1959, Yale acquired American Freight Forwarding for $250,000 and four years later purchased Republic Carloading for $13 million. Eskow's aggressive pricing on the expanded freight forwarding business could not be supported by the thin margins associated with that side of the business.
A 1963 financial audit (by Peat, Marwick, Mitchell and Company) determined that the company's financial statements were materially misleading - not reporting some liabilities and reporting uncollectable receivables as revenue. However, Peat Marwick did not disclose their findings the Securities and Exchange Committee or the general public until 1965.
As a result of the audit and revised financial statements that showed a loss as opposed to a profit, the company was unable to raise capital and filed for bankruptcy. The company's President and Administrative Vice President were charged - and convicted - of fraud.
Shareholders eventually sued Peat Marwick, claiming the results should have been made public immediately, and eventually resulting in revised procedures for auditors to follow when discovering irregularities.
The company may have been best known for its full-size, roof top truck atop a building on the West Side Highway in New York. It served as a giant billboard for the company before their bankruptcy.
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Additional Information
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