We were still running vehicles into the early 60's with engine numbers on titles. We routinely bought new short blocks from GMC and stamped the engine to fit the title. If we went to a larger engine, we had to grind off the 3 digit factory number. If we installed a used engine, we had to grind off the entire number and stamp the number to match the titles.
Here is photo of an original title of a GMC which my father bought from his brother in 1951. The title is a legal document as to the ownership of the vehicle. Texas implemented a sales tax in 1961. I bought a 2015 GMC from my cousin today. THe DMV wants to see the bill of sale so they can charge me 6 1/4% sales tax on the selling price. For this reason I have about 30 trailers titled in Oklahoma. OK does not charge sales tax on commercial trailers.

https://plus.google.com/photos/1081...2389313618&oid=108197707187186692269

The title clearly states that the applicant is the "lawful owner of the vehicle described below." I still have the vehicle, It has went through several engines, but the engine is stamped with the number on the title. I am executor of my father's will and I can transfer the title to anyone. But I kind of like having an original title.