My late father-in-law retired from Western Electric over 20 years ago.
 When he retired he gave my daughter 3 stocks from WE.  In the process
her father and I divorced.  She is now going to be 25 in July and he
keeps telling me that he doesn't have the stocks and doesn't know
where they are.  What do I do?

May be a long shot, but check you state's Unclaimed Property listing. 
For many states, this will be available online, perhaps from the state
Secretary of State's website.  (If the family lived in a different
state a while back, check that state's listings, too.)

Yes, that is a good suggestion.  Here is a site that gives an overview
and links.  To get to the states, scroll down to the bottom, and then
on the next site do the same.  On the sites, you can search by the
name of the person.
http://www.unclaimed.org/mainframe.asp?VisitorType=owner

The above will find any funds that could not be paid to someone, i.e.,
from checks that were not cashed, which would be dividends or payment
for the shares, if they were redeemed.  Search on the names of the
whole family, maybe you will find something else.
However, you speak of Western Electric shares from the last half of the 20th c.
This seems unlikely, as WE was owned by AT&T, as far as I know, 100%,
so it seems more likely that your late father-in-law had ATT shares.
This is something you might ask about on the link for Lucent on this
site.  Scroll down a a bit, and you will see that the Lucent link is
for retirees of WE.
http://www.bellsystemmemorial.com/retirees.html
 
"3 stockes"?   Three shares, or three certificates?  The latter could
each represent any number of shares.  Were dividends ever received? 
Do you know if the certificates were still in the name of the f-i-l,
or in that of your daughter?
If they were ATT shares, as I suspect, the story gets interesting,
since ATT spun off several regional companies in 1984, the holders of
ATT receiving shares in the new companies, and much has happened with
them since then.  Most recently, Nov. 2005, one of them, SBC, took
over the original AT&T and assumed its name.
This site is the FAQs for holders of old AT&T shares, with a contact at the bottom:
http://att.sbc.com/gen/general?pid=7504

My recommendations:
Check for unclaimed property;
Try to discover if the shares were AT&T and in whose name via the Lucent link;
Contact the new AT&T at the above link.

IF you have any questions, please let us know.  
This  - and the above -  are free comments, not an official answer to
your question.

Good luck!

Let me know if this doesn't work.  
I will tell you, but you will need to email me.  I work parttime and
have lots of time.  However, the 3 questions I answered.  I was never
paid. This was an example of one of my answers.
As for NY:
1 out of 13 possible communities in New York.
There are 64 units available for seniors there.  
There are a total of 190,905 persons at least 65 there.
There are 1,301,911 that are classified as all other there; of which, 
240,000-268,000 should be between 50 and 65.
Roughly 78-82,000 should be turning 50 every five years.
FITS: average of $1,000,001
==========
As for PA:
1 out of 30 possible communities in PA.
There are 74 units available for seniors there.  
There are a total of 207,231 persons at least 65 there.  
There are 1,2652,859 that are classified as alll other there; of which, 
41,761-48,000 should be between 50 and 65.
Roughly 14-15,700 should be turning 50 every five years.
**As for info about this city; I remember from researching WSJ, a
study in 2004, that it was the first in the nation to become wireless
Doesn't fit the constraint @ average of $59,700
=========
As for MA:
0 out of possible communities known of in Massachusetts.
There are a total of 60488 persons at least 65 there.
There are 521,127 that are classified as all other there; of which, 
152,237-156,000 should be between 50 and 65.
Roughly 50,745 should be turning 50 every five years.
Much higher likelihood of Baby boomers being wired than Conneticut.
Doesn't fit the constraint @ average of $190,000
=========
As for Conneticut:
0 out of possible communities known of in Conneticut.
There are a total of 21,609 persons at least 65 there.
There are 125,391 that are classified as all other there; of which, 
33,460-35,200 should be between 50 and 65.
Roughly 11,153-11,880 should be turning 50 every five years.
Doesn't fit the constraint @ average of $147,300
========
As for NJ: 
0 out of possible communities known of in New Jersey.
In Southern New Jersey; 
There are a total of 114,000 persons at least 65 there.
There are 755,300 that are classified as all other there; of which, 
200,738 should be between 50 and 65.
Roughly 66,912-72,345 should be turning 50 every five years.
The property value contraint doens't fit.
-
In Northern New Jersey;
There are more areas that could fit the mold of 375K;  this is the
highest average of all, at roughly $271,000
There are a total of 77,937 persons at least 65 there.
There are 692,199 that are classified as all other there; of which, 
187,951 should be between 50 and 65.
Roughly 62,650-64,000 should be turning 50 every five years.
The property value contraint doens't fit; although is the closest.
-
In Central New Jersey;
There are more areas that could fit the mold of 375K; this is the
second highest average of all(in New Jersey), at roughly $217,000
The property value contraint doens't fit with highest area being at
around $207,000.
There are a total of 1786664 persons at least 65 there.
There are 1,566,904 that are classified as all other there; of which, 
421,429 should be between 50 and 65.
Roughly 421,429-425,000 should be turning 50 every five years.
This question definitely generated my curiousity as I follow
realestate appreciation.  I hope this is sufficient.