The Fifth Avenue Coach Company Story, continued from page 2

“Repair Department

“Briefly, the repair department is responsible for the carrying out of our annual overhaul program, the supply of properly repaired units to the operating departments, and in addition it undertakes major repairs to bodies and chassis due to accidents, etc. Fortunately, however, these are infrequent.

“We believe in centralized unit repairs. This work is carried out in a department entirely separated from the operation end. To permit this, each operating department is allotted a definite percentage of spare units which from time to time are exchanged. Insofar as possible, the exchange is made on a mileage basis and we insist that the units be delivered and returned complete in all respects. Operating departments are neither expected nor permitted to make major repairs to units. The centralization of our unit repairs permits of the use of unskilled labor, and to this end special tools and labor-saving devices have been developed to an unusual degree. Also men are concentrated on each of the various sections and each section has allotted to it complete tool equipment covering its requirements. Engines in particular receive careful attention. Bearings are reamed, not scraped. After overhaul the engines are run in by belt, then lightly under their own power. Finally, they are transferred to a dynamometer where they are adjusted to prearranged standards.

“Every twelve months each vehicle is automatically withdrawn from service. It is then stripped down completely and rebuilt. At this time improvements suggested by the research department after having been approved are embodied. The complete bus is rebuilt and repainted, then returned to the respective operating department, to all intents and purposes a new machine and in many respects a better one than the original design. This procedure, of course, has no small bearing on the matter of depreciation, for under these conditions depreciation is really governed by obsolescence. Our idea is that equipment must always be kept up as near to 100 per cent efficiency as possible, and as a matter of fact a vehicle, although it may have seen several years' service, is actually, at the expiration of this time, in a better mechanical condition than when it was first built. However, owing to the newness of the industry, the obsolescence factor cannot by any means be lost sight of.

“Annual overhauls are carried out on a definite schedule. Two per cent of our total equipment is allotted for this purpose, eight working days per vehicle. A small percentage of spare units, such as engines, transmissions, axles, bodies, etc., are employed. In the process of the annual overhaul, no special effort is made to replace the same units.

“Operating Departments

“The function of each operating department is to maintain between annual overhauls the equipment allotted to it. Each department is controlled by a foreman who reports direct to the superintendent of equipment. The foremen are responsible for the cleanliness and general efficiency of the equipment allocated to them. This equipment consists of sufficient buses to meet schedule requirements, plus a certain number of additional vehicles to cover general overhauls. No spares are provided. The operating department foremen are responsible for both day and night forces. They are assisted by sub-foremen and charge hands. The wages, hours of work and duties of all operating department employes are clearly shown under their personnel establishment. As previously stated, operating departments are not required to carry out major repairs. This work is dealt with by the repair department, which also furnishes the operating departments with overhauled units. The organization of departments other than general overhauls and gasoline efficiency will not be referred to, since the duties of these departments are largely of a routine nature and follow conventional lines.

“A general overhaul represents a thorough inspection of every part of the body and chassis of every vehicle after each 2000 miles of service. General overhauls, or as they might be termed "general inspections," are the most important function of operating departments. We attach great importance to our theory of general overhauls. We feel it is essential to have a vehicle that can be operated for a reasonably extended mileage with what practically amounts to no mechanical defects. We then take this vehicle out of service in accordance with a prearranged program and it is gone over in the most thorough manner imaginable. This system permits of concentrated and organized effort with the minimum lost motion.

“Very little repair work is done at night. Our aim is to concentrate on general overhauls. Under these circumstances, inspections, repairs, adjustments, etc., are carried out under almost ideal conditions. It is essential that the space allotted to this class of work have abundant natural light and it must be dry. Furthermore, sufficient time must be given to enable the work to be done satisfactorily. The net result of this procedure permits of attracting and retaining the class of help required, which must be of the best.

“Approximately 6 per cent of our equipment is required for general overhaul. General overhauls must be completed by 4:30 p. m. each day, at which time they are scheduled for service. This means that up to 4:30 p. m. on week days we operate 92 per cent of our equipment and after that time 98 per cent. Saturday afternoons and Sundays we aim to operate 98 per cent. There are very few cases where this is not done, assuming, of course, that the requirements call for this service.

“We have adopted the following general procedure in connection with the carrying out of general overhauls:

(1) A sheet is posted in each garage showing cumulative daily mileage of each bus from the last overhaul; from this sheet it is possible to see at a glance which vehicles are due for general overhaul
(2) The day previous to general overhaul each vehicle receives a special examination on the road by a qualified inspector; reports of this inspector are attached to general overhaul sheets. A special form is provided for this and on it are printed the items inspectors are required to examine
(3) At night as the buses are turned in a specially trained mechanical inspector meets them at the garage entrance. The drivers hand their report cards to this inspector and at the time take up with him any matters that seem of more than ordinary importance
(4) The night previous to the general overhaul the mechanism is thoroughly cleaned. The bus is then placed over a pit ready for an organized attack on the following morning
(5) The general overhaul sheet, which represents the history of a bus since its preceding general overhaul, is withdrawn from its binder, totaled up and placed on a board hung at front end of the bus. This sheet shows the drivers' names, mileage, gas and oil consumption; also the defects reported each day since the last general overhaul. There is also entered on the sheet a statement of the gas and oil averages of the vehicle as compared with the other vehicles operating from that division. The general overhaul sheet for each bus is brought up to date daily. The necessary data are obtained from the conductor's day card, the driver's report card and the division gas chart. The last item is described below.
(6) During the process of general overhaul, gangs of specially trained experts deal with the various units. There is printed on each general overhaul sheet a summary of the duties of each section, the parts to be inspected, etc. . This process is followed rigidly without any regard for the apparent condition of the vehicle. Details of the defects, if any, are obtained from the daily report card, which is carried on each bus. The drivers are required to enter chassis defects and the conductors all matters pertaining to the body.

“Throughout the year we average about 6.5 miles per gal. of gasoline. This figure takes into account all shrinkages, leakages and losses of every kind and description. There are a very large number of high individual averages, some as high as 15 miles per gal. We have a number of men who can give us 10 miles per gal. for weeks at a time. Of course, there are other men who give us low averages, but this is to some extent controlled by the class of service; for example, buses doing short mileage during the congested period of the day only are seldom high on our lists.

“There are many reasons why we believe it is essential that special care and attention be paid to the matter of fuel economy. High gasoline averages from our standpoint mean:

(1) Economy
(2) Well-designed and maintained equipment
(3) Skilled and contented operatives

“Gasoline is our second greatest item of expense. Our yearly bill is in round figures $500,000. Since 1 per cent of this amount represents $5,000 annually, it can readily be seen that losses of even 1 or 2 per cent must be remedied, regardless of whether these losses are due to mechanical or physical disabilities. Increased labor and material expenses, and gasoline falls under the latter heading, cause us much greater anxiety than if we were manufacturing in the ordinary sense of the word, for we are selling a commodity which has a fixed price regardless of production costs. This means that every addition to our labor and material bills must be paralleled with some form of economy. If this were not done, we would soon find our expense? in excess of our income. For example, in 1911 our gasoline consumption averaged 2.9 miles per gal. At that time gasoline cost much less than it does today, and if it had not been possible to increase our gasoline efficiency enormously it is quite possible that the Fifth Avenue Coach Co. would now be out of existence. Not only is our gasoline bill the second greatest item of expense, but it is capable of greater reduction with less effort than any other single item. Furthermore, in achieving high averages, we accomplish at the same time many other desirable things. Our rising and falling gasoline averages are in effect the barometer on which we base our predictions. The gas barometer tells us in the most unmistakable language what is in store for us. Bad gasoline consumption means big fuel and repair bills with the prospect of still bigger bills in future; possibly also labor unrest due to general dissatisfaction.

“To attain high averages it necessarily follows that one must employ well-designed and maintained equipment. Our vehicles cover an average of more than 100 miles per day. They are required to stop and start about 1000 times a day with several thousand gear-changes, brake applications, etc. Furthermore, each vehicle is handled by several different drivers daily. None but the best materials will stand up under such conditions.

“Where high averages are obtained there can be no question that both drivers and conductors are willing and anxious to serve the best interests of the business, and one knows that this cannot be the case unless they are interested in their work and are happy and contented.

“The following ways and means have been adopted to secure and also to maintain high averages:

(1) All engines are put through a standard dynamometer test before being issued to the repair and manufacturing departments. After engines are installed few, if any, adjustments are found necessary other than the changing of jets
(2) There is posted in a prominent position in each garage a sheet which shows daily the number of miles per gallon of gasoline for each vehicle. This sheet is constantly referred to by members of both mechanical and transportation departments. This information gives us a definite basis on which to work and it also permits all concerned to be in a position to see the results of their efforts
(3) There is attached to each division one fuel expert and one driver who is not assigned to any definite run. The letter's work consists in taking out and operating in regular service buses showing low averages. His assignment is arranged between the fuel expert and the transportation foreman. We choose the most efficient of our drivers for this work. Obviously, the advice of such men is of the greatest possible value to the fuel expert
(4) The fuel expert is provided with a special kit of tools together with an assortment of various jets. No carburetor adjustments are made by men other than the fuel experts. All jets are numbered and carefully calibrated and a proper record is made of all jet changes. The carburetor itself is specially built to give high economy
(5) From time to time we organize various kinds of gasoline contests. In some instances, details of these contests have been published in the trade papers. These contests are useful not only because of the direct bearing they have on our gasoline and repair bills and mechanical efficiency generally, but also because they tend to create better fellowship, a friendly spirit of rivalry, a keener and deeper interest in our business and a closer understanding of our aims and aspirations, in short, our policy
(6) There is issued to the various departmental heads a weekly summary showing divisional gasoline averages. Comparisons are made with the previous week and also with the corresponding period of the previous year.

“Transportation Department

“The superintendent of transportation has charge of selecting all men for the transportation department, supervision of their training, administration of discipline, elimination from service, promotion, general study of traffic conditions, collection of statistics upon which running time and schedules are prepared, supervision of inspectional forces, receivers, timekeeper's and mileage departments, division foremen, etc. In this work the superintendent has a supervising force of forty-five men comprising foremen, heads of various departments, inspectors and starters.

"The chief of the appointment bureau is responsible for all men employed. Generally, employees recommend applicants. Qualifications are preferably married men, 25 years or over, and those with Army or Navy training. Applicants must be over a specified weight and height. All applicants are courteously received by an examiner who questions them as to their previous experience. Those who qualify are permitted to fill out applications. They are then passed en to the chief, who questions them further as to their general qualifications and knowledge of the city. If accepted, the applicants are sent to the company doctor for physical examination and eyesight test. The superintendent of transportation then gives each applicant a short lecture on the policies and aims of the company. His photograph is taken by the company photographer and he enters the conductors' instruction school. His references for five years are in the meantime investigated and those references within 25 miles of New York City are checked up by a personal investigation. Only 20 per cent of all applicants qualify for the position of conductor.

“The chief conductor instructor points out to students the duties they are required to perform, emphasizing courtesy toward passengers and the prevention of accidents. Each student is then given various forms and descriptive matter and instruction in detail on these follows. Students are assigned to conductor instructors on the road to receive a practical working knowledge, and then return to the school for a final examination. Those passing the oral, blackboard and written examinations with a proficiency of 75 per cent are recommended for appointment. Others receive further instruction until 75 per cent proficient. On an average, the instructional period covers four days. On the completion of the instructional period, the student is given a certificate by the chief conductor instructor which he brings to the appointment bureau. Assuming satisfactory references, the student is then outfitted by the company tailor. Finally, he is assigned to a division where a "get together" talk is given by the foreman before starting work. All new men are on probation for ninety days, during which time the chief conductor instructor rides with them as often as practicable for follow-up instruction, because it is impossible to inculcate all details of a conductor's position while in the school.

“The men who man our buses, including instructors, inspectors, starters, etc., must all graduate from positions as conductors. Where men prefer to remain as conductors, no objection is raised. Based on averages, each conductor has an opportunity to become a driver after eight months' service. We attach great importance to the educational value of this system. A conductor soon learns traffic regulations. He becomes familiar with the requirements of our patrons. He also has the best possible opportunity to see and feel the results of misoperation. A driver without a conductor's experience can scarcely realize what a conductor must contend with and he would be less likely to cooperate with the conductor. His experience as a conductor insures that he is aware of exactly what is happening at the rear end.

“Promotion to driver, which involves an increase in pay of 13 per cent, is determined by seniority. Promotion also depends upon the man's record while employed as a conductor. This prompts conductors to keep their records clear of violations. Conductors are recommended for promotion by their foremen and reexamined by the doctor. If passed, the records are examined by a board of review consisting of the superintendent of transportation, the chief driver instructor and the chief conductor instructor. If approved by the board, they are placed in the drivers' instruction school.

“The chief driver instructor points out to the students the duties they are required to perform. They are then shown on a stripped chassis the various units and the relation these units bear to the operation of the bus. Then they are sent to a divisional instructor and receive practical experience in driving on the road without passengers. Every third day the students are sent back to the school to receive additional mechanical instruction.

“Upon passing the State examination and a license being granted, the student is permitted to drive a bus carrying passengers, under guidance of the service instructor, until competent to become a driver. He is then given a test by the chief driver instructor and if found satisfactory is recommended for appointment.

“On an average the instructional period covers sixteen days of 10 hr., the 160 hr. being divided into 45 hr. of mechanical instruction, the same amount of driving instruction without passengers, and 70 hr. of driving instruction with passengers. As in the conductor's instruction, follow-up instruction is also given. From the time each man files his application for a position as a conductor to the time he is made a driver, the company expends practically $200 for his instruction.

“Complete records are kept of each man. These are in folder form and consist of:

(1) Application
(2) Reference blanks
(3) Photographs
(4) Doctor's examination certificate
(5) Complaints and commendations
(6) Violations
(7) Accident settlements

“The first part of the record consists of sheets arranged in chronological order showing entries of all violations, complaints, commendations, accidents, etc. When a conductor becomes a driver, the same record is continued and there is attached thereto his record of instruction as a driver, the doctor's reexamination certificate and the employee's contract; also a sheet showing entries of all delays together with reports covering their investigation.

“In the instructional period students are paid. This is in reality a loan and a contract is made in which it is stipulated that if the student remains as driver six months or longer, the loan is discounted. If he leaves the service prior to expiration of the six-months period, the loan must be paid out of any wages due him.

“Buses are run in accordance with time-tables very similar to those of any steam railroad. The construction of our time-tables is a most difficult and expensive matter, much more so than with steam railroads and electric surface or subway systems. Because of the varying traffic conditions along our routes, we are obliged to have no less than six different running times. Of course, these are based on average conditions, since it would be impracticable to meet every variation. Any simplification of our time-table arrangements must immediately result in a decreased speed. This would be unsatisfactory to the public and immensely costly to us. Our annual payroll for drivers and conductors is in round figures $1,000,000; therefore a 1 per cent decrease in speed represents $10,000 added to our wage expense. There are also changes in the different periods of the year and it is necessary to build new schedules when these become effective. Schedules must also be changed to take care of the varying conditions of riding. This change in riding must be closely watched and passenger counts are constantly taken at various points to determine just what service is necessary. Altogether there are ten time-table changes throughout the year and modifications almost weekly.

“There are nine separate lines, all of which converge on Fifth Avenue below Fifty-seventh Street. For the different periods of the day we at present operate the following number of buses per hour:

Period		Buses per hr.		Headway, in sec.
Morning rush		193		18
Midday		107		33
Evening rush		184		20
Sunday		144		25

“Foremen, chief instructors, inspectors and starters patrol the routes for the purpose of regulating the operation of the buses and to give follow-up instruction to new conductors and drivers. We also employ an average of twenty operatives, in civilian clothes, in our inspectional bureau to check general operations on the road. Inspectors also make hourly checks of schedules, report bad pavement conditions and defective equipment; check conductors' register readings and talk to the men on minor violations. Serious infractions of rules are reported to the respective foremen of transportation. They in turn give a man four chances before sending him to the superintendent of transportation. We have instituted the "right of appeal" so that a man who feels an injustice has been done can take his case to the general manager and, if necessary, to the president.

“Crews are allowed 10 min. each morning and night for an inspection of their buses. The depot dispatcher is responsible for seeing that the buses leave the garage on schedule time. As soon as a bus reaches the terminal, it is then under the direction of the starters and the inspectors who direct the buses in accordance with schedules, copies of which they are provided with in small book form.

“Arrangements must always be made ahead of time for the numerous parades traversing our routes. New routes must be selected and looked over for overhead structures, pavement conditions, etc., and men have to be stationed at the points where we turn off our regular routes and also those unprotected by traffic policemen, as well as at points where there are overhead obstructions. While parades do cause us considerable losses they do not prevent our operation, since it is simply a question of selecting other routes. Our organization provides for a number of alternative routes which have been previously surveyed and the points established where men are required for directional purposes, etc. This is a very convenient arrangement and permits of changes being made on very short notice.

“We maintain a fleet of thirty-eight snow-plows and five sand-cars, with which we keep our routes open through the winter. The snow-fighting force is patterned after the fire department. Each section of our routes has its allotted plows in charge of a captain. Our organization is arranged so that regardless of the time of day or night a snowstorm starts, the required men automatically report for duty. When such conditions obtain, a complete system of centralized control automatically becomes effective.

“We have an association for all employees which insures them for a nominal fee with death and sick benefits; also the free use of the company's doctor. We have a sunshine nurse and sunshine committee who take care of those who are ill or in trouble. In addition, we maintain a pension fund. We often give free legal advice through our attorneys to employees. Restaurants, recreation rooms, barber and tailor shops are maintained for our employees at each of our garages. We even provide sleeping accommodation in the winter for men who cannot get home because of unfavorable weather conditions so that a man can practically live at the plant with all the various accommodations provided. In our restaurants food can be obtained at practically cost price. The same applies to our barber shop. The service of the tailors is gratis. We have a house organ, Bus Lines, to which employees contribute items of interest, and generally the business is run on the basis of one great, big, happy family.

“Future Possibilities Of The Motor Bus

“It has already been pointed out that motor-bus operation is a comparatively new art. The possibilities of improvements, more especially from the standpoint of design, are practically unlimited. This applies with respect to greater comfort and convenience as well as economy of operation. These remarks do not apply in the same degree to any other form of surface transportation. In most cases, other systems are providing all the comfort and convenience that can reasonably be expected. Furthermore, it is scarcely to be hoped that further operating economies can be effected. As a matter of fact, insofar as one can judge, costs will rise rather than fall, for with the present high rate of personal and real estate taxes, high rate of wages, high cost of materials, etc., the greater the- investment in property in relation to the gross income the less will be the possibility of profit. The bus requires the minimum investment in garage and repair facilities. The lower unit cost is a powerful argument in favor of its adoption.

“Unquestionably if a motor-bus service is to realize its possibilities of financial success, it must be backed up not only by ample resources, but it must also develop a highly specialized organization. Experienced management and direction is imperative. The engineering force requires a special experience, for the demands upon the motor bus are quite distinct from the demands made upon any other type of motor vehicle. The needed traffic studies and schedule making are unique. The employees must be trained in a branch of motor-vehicle operation with many distinct and unique peculiarities for which the operation of neither the automobile nor any form of surface transportation affords suitable training. One of the chief differences between the bus and other forms of surface transportation is the matter of flexibility. As a matter of fact, we prefer to train men for drivers who have never had automobile driving experience. Furthermore, we find that railroad operatives, while they do possess useful knowledge, require to unlearn so much that on the whole it is more satisfactory to employ men without this experience.

“Unquestionably the wisest policy both from a financial standpoint and the service results to the city is to entrust a single well-organized and equipped company, possessing ample resources, with the development of a unified motor-bus service. Parceling out streets to two, three or more companies will never provide the Pullman car service which the true motor bus can give. If the parceling out process is adopted and the several companies are of a nondescript character with the usual type of jitney equipment, the outcome can only be chaos. The actual result of any form of competition must be multiplied fares and no transfers. With a unified system there can be no harmful monopoly, for the fare should be determined by the authorities and the company should be under public regulation, but so-called competition from a public utilities standpoint means bad service and financial failure. Cities cannot be prosperous without efficient utilities and utilities cannot be efficient without prosperity. To cite an example of the evil effects of bus competition, one need only point out London's early bus experience. This soon convinced both the stockholders and the general public as to the unwisdom of this policy.

“No satisfactory motor-bus service can be given with seats for all on the basis of a 5-cent fare. It costs the Fifth Avenue Coach Co. about 8 ½ cents for each passenger carried. A large proportion of our daily mileage is operated at a loss. Checks show us exactly where these losses occur, but we do not try to avoid them. We are satisfied that by careful management on the whole a profit can be made and that in the long run we should surely lose if we merely cut our service to suit local conditions. We know that our success must depend on the good-will of the public and it has always been our aim to give in exchange for our earnings an equivalent measure of helpful service.

“Unquestionably in the larger centers it is desirable that the workers should be able to get away from the busy centers of industry and congestion to more wholesome home surroundings in the outlying districts and everything should be done by city authorities to encourage this. Nothing is of more importance in this respect than providing expeditious, healthy, comfortable and easy means of public conveyance to and from these points. Of course, the development of the outlying districts raises values so that the city will in this manner obtain increased income from taxation. This is quite an important consideration.

“Clearly, where car tracks do not already exist, the most careful thought should be given before they are installed. Quite apart from this, from a public service as well as an operating point of view, there can be no question as to the possibility of using buses for: 

(1) Extending the service of existing car lines by a bus system into the outlying districts through the introduction of transfer privileges between the two.
(2) Extending service, the conditions of the streets permitting, into outlying districts without a transfer between busses and the cars and without disturbing the present local business or business logical to the existing car lines by permitting the buses to operate beyond the present outlying terminus of street cars and diverting the buses to other parallel routes after reaching such outlying terminus.

“There is one point I should like to make particularly clear. In my judgment, no type of bus designed up to the present is capable of properly handling peak loads. Of course, there are possibilities in regard to a suitable development along these lines, but as yet these have not been achieved. In my opinion, the theory that the car systems in any of the larger cities can be supplanted by any standard type of bus now obtainable is absurd and not worth any serious discussion. No man with any elementary transportation knowledge would think of backing such a statement. The bus is not more economical than the trolley car on the basis of cost per passenger carried, which is the only real basis. Obviously, it is useless to compare the cost per mile of two vehicles of such vastly different seating capacity.

“It should be borne in mind that the financial success of the Fifth Avenue Coach Co. is largely due to the 10cent fare. On a 5-cent basis its development would have been absolutely out of the question. In saying that the bus cost per passenger carried is not less, and is perhaps greater, than that of the trolley car, I should also add that I am sure the public will gladly meet the difference since the comfort and convenience of a bus have much greater possibilities than is the case with the trolley car.

“Conclusion:

“Few, if any, of those who ride in the Fifth Avenue Coach Co. buses realize what kind of an organization is necessary to give the public the class of service provided. This is particularly true of those interested in promotional schemes. If the average promoter did realize the relatively small margin of profit and the countless pitfalls, he would most certainly steer clear of the bus question. To attain success in the operation of motor buses is not a simple undertaking. The truth of this is evidenced by the number of companies that have failed as compared with those which have been successful. Railroads and street cars have years of precedent to guide them, but this newer form of transportation is as yet in its infancy.

“The policy of the Fifth Avenue Coach Co. from an outside viewpoint may be summed up into two words, "service and courtesy." From an inside viewpoint we aim to give every member of our organization a square deal in all that the word implies. With us the word "justice" is not merely an empty phrase. The "right of appeal" guarantees this. The doors of the executives' offices are always open and heads of the departments as well as the rank and file have free access at all times. We believe in cultivating constructive criticism, and with this in view frequent staff meetings are held when all members have an opportunity to express their opinions. These meetings also enable the staff to maintain that close personal touch with the management without which real cooperation is scarcely possible. Our staff officers are carefully trained. They are taken into our confidence where matters of policy are involved and their views are eagerly sought. They are most courteously treated and they in turn so treat their subordinates, for we all know that in any industry the men in the ranks take their example from those at the top.

“We also aim to pay at least as good, preferably better, wages than can be obtained in businesses of a similar class. Our working conditions are just as "good as we know how to make them. The net result is that labor troubles are conspicuous by their absence. Lastly, our labor turnover is small and we always have more applications for positions than we have positions to offer.

“Perhaps it is not out of place to say that we are extremely proud of our organization. We possess unequaled garage facilities, splendidly laid out and well-lighted shops, modern machine-tool equipment and a personnel that knows not the word "failure." Practically every member of our staff has worked his way up from the ranks. Our organization is not a one-man proposition in any sense of the word. Each man is willing and anxious to do more than is expected of him and to subordinate his personal interest. We all believe in the theory and practice of teamwork and so it naturally follows that the operation of our business is extraordinarily free from petty jealousies and from other forms of industrial unrest. At least, that is our position today and there is nothing on the horizon to cause us to fear that there will be any change in the future.

“THE DISCUSSION

“G. A. Green:—Too often the manufacturer cannot get really accurate data in regard to the performance of his product. Very often it is badly cared for and abused and he cannot control this. His natural impulse is to strengthen the various parts to a point where abuse does not count so heavily. Of course, this means added weight and higher operating costs. The truth of this statement is evidenced by a marked lack of standardization as to rated load capacities.

“In the motor-bus business, there can be no question as to the necessity of a research department. By this means we keep our machinery up-to-date and thus guard against obsolescence. While a part of the engineering organization, our research department is available to all. Demands often are made upon it by departments whose routine work is not of an engineering character. It is not a luxury. Gasoline consumption experiments, for instance, indicate that we can effect an economy equivalent to approximately 18 per cent of our present fuel bill. In round figures, this would represent a saving of $90,000 annually. The changes necessary to obtain this economy are comparatively inexpensive.

“The success of a motor-bus company depends largely upon the system employed for maintenance. Our vehicles are designed to cover 2000 miles of uninterrupted service. After this, they undergo a general overhaul. After a year's service, irrespective of mileage, each vehicle undergoes what we term an "annual overhaul."

“We attach great importance to fuel economy. Our rising and falling gasoline averages represent the barometer on which we base our predictions. Excessive gasoline consumption means large fuel and repair bills with the prospect of still larger bills. We can accomplish a greater monetary saving by proper attention to fuel economy than we can with any other single item in connection with maintenance. From our viewpoint, high gasoline averages insure economy, well-designed and maintained equipment, skilled and contented operatives. Our experience has clearly demonstrated it is fully as important that we should instill in our employes the desire to give us good gasoline averages as it is that the machinery should be capable of doing so. The former presents far greater difficulties.

“The outstanding features of the transportation department are;

(a) the large amount of time and money necessarily expended in the selection, education and training of the personnel and in record keeping;
(b) the large and expensive supervisory force;
(c) the complexity of schedule making and the far-reaching effect of this from the standpoint of income and that of the comfort and contentment of the transportation force as a whole;
(d) the large volume of motor-bus traffic possible on streets already crowded with other kinds of vehicular congestion;
(e) the difficulties of winter operation.

“Regarding future possibilities, the industry is absolutely in its infancy and the possibilities of improvement are almost unbounded. This is not true of other forms of surface transportation. The difficulties to be encountered in connection with motor-bus transportation are frequently referred to and stress is put upon the necessity for unified control, a highly-trained technical organization and a 10-cent fare. The last item is very important.

“I have attempted to point out clearly that there are very marked differences between jitney operation and that of a company sincerely anxious to cater to a lasting trade, to give real service at all times. My thought was not to discourage responsible organizations from entering this field, but to show that there is more to the operation of a successful motor-bus company than the mere purchase of stock vehicles and running such equipment when travel is heavy. Such procedure can only result in failure and, if persistently followed, one of the most promising industries of modern times may receive a setback from which it will not speedily recover. No comparison is possible between Fifth Avenue motor-bus and jitney operation. Speaking in general terms, we lose money on at least 30 per cent of our total mileage. In wet and very cold weather our seating capacity is automatically cut in half and it frequently happens that an entire day's operation results in a loss.

“Pneumatic Tires For Buses

“In connection with our experience in the use of pneumatic tires for motor-bus transportation, for our doubledeck buses carrying from 48 to 50 passengers, it is distinctly an experimental proposition. Many of the disadvantages are due to the pneumatics having diameters greatly in excess of those of corresponding solid tires. The disadvantages from a motor-bus standpoint are as follows:

(1) The center of gravity is higher and there is a greater possibility of overturning
(2) Passengers seated on the upper deck are more liable to be struck by overhead obstacles
(3) The impossibility of obtaining low-level platform construction
(4) The weight of pneumatic-tire equipment, which is in excess of that of solid tires of the same carrying capacity
(5) The decreased inside seating capacity because of the abnormal size of the wheel pockets

“The advantages of riding on pneumatic tires are unquestionably greater. We cannot, however, expect any great increase in speed, for this is controlled largely by the density of the traffic through which the buses must pass. Of course, there are many instances elsewhere where this does not apply. The pneumatic tire does permit of fuel economy and lower maintenance costs, but we are not yet in a position to issue exact figures. It seems clear that in our business the various economies would not by any means compensate for the extra cost. It should, however, be borne in mind that all of my remarks refer to the use of pneumatic tires in connection with our 48 to 50-passenger double-deck buses. The possibility of the successful use of pneumatic tires with single-deck vehicles of smaller seating capacity is an entirely different issue. I think this is a far more fruitful field.

“I offer one or two suggestions in connection with the design of large pneumatic tires. It seems to me highly desirable that the overall diameters should approach more closely those of solid tires. This question has been vigorously taken up with the manufacturers and we have now in course of preparation several sets of experimental 10-in. tires, the overall diameters of which will be the same as those of the solid tires now employed. We regard this as a very interesting and important development. The reduced diameter of the pneumatic tire has wonderful possibilities from the standpoint of weight-saving. In this connection it seems better to consider the use of the demountable wheel rather than the demountable tire. The weight of demountable rims and fittings in general is appalling.

“From the standpoint of motor-bus operation, 8, 9 and 10-in. tires are out of the question. I think we all agree that it is desirable to eliminate weight which is unsprung. Above everything else, we should reduce wheel weight. In reducing wheel weights, it is of supreme importance that the amount of metal used at the rims be kept at a minimum. This is where the small-diameter pneumatic tire has such wonderful possibilities, for under these conditions the wheels really represent little more than hubs and they can be made readily from aluminum.

“I believe that the Society might with advantage devote more time to the human side of matters of organization. At present its members concentrate almost entirely on questions dealing with design, material and the like. In our business we find that if we pay proper attention to the human side, bad design and material, although costly, do not necessarily mean failure. Clearly, where cooperation and teamwork are lacking, all the engineering skill of all the best men in the industry will not make for success. By success I mean a condition which permits of satisfied workers and at the same time a fair return for capital.

“H. M. Crane:—Regarding Mr. Green's paper and his work, the Society should realize the value of information obtained from a man of his ability and position. It is very rarely that we have the opportunity to compare proposed practice and subsequent experience in the way in which he has been able to do, under the stimulus of a fixed income. The present situation in trucks is very encouraging, but the truck today is very far from being an efficient implement. The reason is that in most businesses the truck is a side-line. It is not the thing that makes money for the business; it is merely an accessory, and the matter of economy in operation is not necessarily of serious importance. In fact, a very successful truck might lack almost every good engineering point except the one important feature that it transported its load over the road, and that is what the owners care most about. They want the merchandise moved at any price. Mr. Green's corporation has a 10-cent fare and no one expects that this can ever be increased. I think that is a very valuable stimulus.

“I have three questions to ask of Mr. Green. What is the weight per passenger of the present bus, fully loaded ? What is the average yearly mileage? Mr. Green states that the buses are completely dismantled every year. What is the effect on the bus operation of the New York police regulations in which an effort has been made to handle the traffic on Fifth Avenue as a block, first north and south, then east and west, from the 34th to the 59th Street crossings?

“Mr. Green:—The bus weight per passenger is approximately 200 lb. This figure is obtained by dividing the number of passengers into the weight of the bus completely equipped for service, including a full supply of gasoline, oil, water, lighting battery, etc. The approximate yearly mileage of each bus is 30,000. With regard to the effect of the recent traffic police regulations, on the whole they have been of marked benefit to us. By close cooperation with the police we expect to effect further improvements. The chief detriment at first was that some trouble was experienced because the intervals between the north and south bound traffic and traffic bound east and west were disproportioned. Various changes have been made and the present arrangement works very well.

“With regard to fuel, I said that our research department had discovered, during the past six months, means of accomplishing further economies totaling approximately 18 per cent and to apply those means would not be especially difficult, but 18 per cent is a most conservative figure. The controlling factors are as follows:

(1) The adoption of thermostatic hot-air control
(2) The adoption of a system permitting more complete control of idling speeds
(3) The employment of automatic instead of fixed spark-advance
(4) The elimination of gasoline-tank evaporation losses
(5) The introduction of a small quantity of exhaust gas into the inlet manifold
(6) The modification of exhaust pipe and silencer layout with the object of reducing back-pressure.”

October 1922 Bus Transportation:

“Lake Shore Motor Bus Company Changes Hands.; Influential Chicagoans Take Financial Control—Will Extend Activities to Cover North, South and West Sides of City

“FINANCIAL control of the Lake Shore Motor Bus Company, the holding company for the Chicago Motor Bus Company and the American Motor Bus Company, the operating and manufacturing company respectively, has been secured by John D. Hertz, president of the Yellow Cab Company; Charles A. McCulloch, president of the Parmalee Transfer Company and also vice-president of the Yellow Cab Manufacturing Company, and other influential and progressive Chicagoans. Among these are W. H. Wrigley, Jr., of chewing gum fame. John A. Ritchie, who has been president of the Fifth Avenue Coach Company of New York City since 1918, has been elected president, general manager and a director of the company. As Bus Transportation was being sent to press it was announced that Col. G. A. Green of the Fifth Avenue Company would also join the Chicago company. The present organization of the two underlying companies will be kept practically intact. Greatly increased service is to be given on the present routes and new lines are to be opened.

“With service over all of the routes contemplated 300 buses will be in operation. These, as a combination of the L type coach of the Fifth Avenue Company and the latest open-top double-deck model of the Chicago Motor Bus Company, are to be of an improved low-level design, worm driven, with chain-driven transmission. The engine will be a vastly improved Moline-Knight. The double-deck coaches are to seat sixty-eight. In addition to the double-deckers the company will also use between twenty-five and thirty one-man high-speed single-deck buses chiefly as feeders to the trunk lines.

“Present operating plans call for 70 miles of route on the south side, 40 miles on the west side and 30 on the north side. The main lines will run direct to the Loop district and the fare will be 10 cents. No transfers will be issued except from short line to long line buses.

Hearings have already been started before the Public Service Commission on the application for permits to operate over the new routes mentioned above. The statement was made by officials that the newly organized company would spend $3,500,000 in perfecting its operations.”

October 1922 Bus Transportation:

“J. A. Ritchie Leaves Fifth Avenue Coach Company.; President of New York Concern, Famous for His Civility Campaign, Will Head Chicago Motor Bus Company

“JOHN A. RITCHIE, president since April, 1918, of the Fifth Avenue Coach Company, New York, N. Y., and the man who first introduced 'Civility' into a public utility corporation and made it a popular byword, has resigned to become head of the recently reorganized Chicago Motor Bus Company. The departure of Mr. Ritchie for Chicago removes one of the outstanding figures in transportation developments of New York City.

“The Chicago company has been organized to conduct a bus transportation system on a scale larger than has ever been undertaken by a corporation in this country, and Mr. Ritchie, as president of the new company, will occupy an important position in the field of motor coach transportation.

“The Chicago Motor Bus Company will be the operating company. Its coaches will be manufactured by the American Motor Bus Company, a subsidiary, of which Mr. Ritchie also will be the head. The company possesses franchises to operate its coaches over more than 70 miles of Chicago streets at a 10-cent fare. Dispatches from Chicago state that the Chicago Motor Bus Company has been capitalized at $3,000,000 and that an equally large amount will be expended in manufacturing motor coaches of the general design of the Fifth Avenue company coach, but of an improved type and possessing greater seating capacity.

“Associated with Mr. Ritchie in the new company will be John Hertz, president of the Yellow Taxi Company of Chicago; Charles A. McCullough. Chicago banker; William Wrigley, Jr., the chewing gum man, and others.

“The present equipment of the Chicago Motor Bus Company will be utilized until the new coaches are ready to go into service. The building program calls for 300 coaches in a year.

“Civility, a new theme in business and social relations, was introduced into the Fifth Avenue Coach Company when Mr. Ritchie, a man in the early forties, became president of the company. Previous to that, Mr. Ritchie had been operating statistician of the subway, elevated railroad and surface car lines of New York City, under the presidency of the late Theodore P. Shonts. Mr. Shonts ‘found’ Mr. Ritchie back in 1908 when the latter was connected with the Illinois Central Railroad as investigator of accounts. Mr. Ritchie entered the transportation business in his youth.

“Mr. Ritchie assumed charge of the Fifth Avenue Coach Company at a time when every industrial enterprise in the country was beset by labor difficulties as a result of the European war. As president his first aim was to establish the most cordial relations with his employees, from the man on the coach up. The word ‘boss’ soon disappeared from the vocabulary of the Fifth Avenue Coach man. Mr. Ritchie adopted the policy of an open door to all, ever being ready to listen to the complaint or suggestion of the most humble.

Mr. Ritchie's next move was to arouse in the public mind a wholesome respect for the courteous service of the men on the coaches and the degree of his success in this respect is best reflected by the reports for August, which show that there was but one complaint of incivility to every 996,310 passengers carried during the month. His most recent innovation in transportation was the substituting of name plates for numbers on the blouses of the coach men so the public might know with whom they were riding. This change evoked considerable favorable comment from the public.

“Corporations throughout the country and educational institutions of every variety joined with Mr. Ritchie in a universal appeal for a more general practice of every-day courtesy. The civility campaigns conducted under his personal supervision started a flood of public comment which resulted in the compilation and publication of a series of pamphlets on the subject which are considered as among the best ever issued by a public service corporation. Some of these pamphlets now are in the libraries of virtually every city in the country and the most recent of these, ‘A Harvest of Thoughts on Civility,’ created such demand that the edition was exhausted over night, and requests by mail became so numerous that filling them became a virtual impossibility.

“An extended biographical sketch of Mr. Ritchie was published in Bus Transportation for February, page 148. Further details of the reorganization of the Chicago Motor Bus Company will be found elsewhere in this issue. Just as Bus Transportation went to press it was announced that Col. G. A. Green, vice-president and general manager of the Fifth Avenue Company, would also join Mr. Ritchie in Chicago.”

November 1922 Bus Transportation:

“Buses Used in Celebration of Railway Opening

“Four motor buses took a prominent part in the ceremonies held on Nov. 7 in Philadelphia when two city-owned lines, one elevated and one surface, to be operated by the Philadelphia Rapid Transit Company, were dedicated to the public service.

“The buses were used by the Philadelphia Rapid Transit to carry its own and city officials to the dedication ceremonies. They represented practically all the types required for city service. They included two Mitten-Traylor single deck vehicles, one of twenty-nine and one of twenty-five passenger capacity; one Model L double decker of the type developed by the Fifth Avenue Coach Company; and one covered double decker with prepayment rear end, of the Detroit type described on page 479 of the September Bus Transportation.

“While no official announcement has been made by the Philadelphia Rapid Transit, the use of these buses in the ceremonies at the opening of the railway lines undoubtedly indicates their operation in the near future in conjunction with the existing rail lines.

In fact, Thomas E. Mitten, president of the Philadelphia Rapid Transit Company, has been credited with the intention of making a thorough study of possible routes where buses might be used in Philadelphia and of the costs of operating such service.

“As Bus Transportation goes to press it was announced that A. E. Hutt, formerly with the Detroit (Mich.) Motorbus Company, will be in charge of the bus development.”

November 1922 Bus Transportation:

“Chicago Company Stresses Direct Communication—Experts' Traffic Study Shows City's Greatest Increase on South Side”

“THE Chicago (Ill.) Motor Bus Company which was recently reorganized by financial interests with which are identified John Hertz, president of the Yellow Cab Company, and Charles A. McCulloch, president of the Parmelee Transfer Company, has presented its reason why it should be granted a certificate of convenience and necessity by the Illinois Commerce Commission in hearings which were held on Oct 10 and on Oct. 25, 26 and 27. The routes under consideration are those leading from the Loop district to the south side over the boulevard and passing through and adjacent to the parks in that district.

“The new company has already obtained a franchise to operate through the parks and boulevards under the jurisdiction of the South Park Board. The hearing will be concluded on Nov. 6 and it is expected that if the certificate is granted operation will begin from two to three weeks after that date.

“In seeking its certificate, the company introduced evidence by which it sought to show that the proposed bus service will provide direct accommodation along the boulevards and will provide more rapid, convenient and comfortable service to and from the loop district for certain residential districts not now conveniently served. Another contention was that it would afford an opportunity for pleasure riding to that part of the population which does not own motor cars, and it will particularly make available the advantages of the parks and boulevard system. The extent of pleasure riding was shown by figures of the north side lines of the Chicago Motor Bus Company and also from records of the Fifth Avenue Coach Company. It was also demonstrated that operation of a route proposed would not be injurious to the traffic of the Chicago Surface Lines or the Chicago Elevated Railroad.

“To show the financial soundness of the new company, John D. Hertz, president of the Yellow Cab Company, pledged the bus line to an expenditure of $3,500,000 which is already available. He placed himself on record as a witness before the commission to this effect.

“As announced in Bus Transportation last month, John A. Ritchie and Col. George A. Green have resigned from the Fifth Avenue Coach Company to take active charge of the new Chicago Motor Bus Company, although it is understood that both Mr. Hertz and Mr. McCulloch will take a prominent part in the management of the concern. Mr. Ritchie, who has resigned as president of the Fifth Avenue Coach Company, has been made president and general manager of the new company, while Colonel Green has left his position as engineering chief of that corporation to become vice-president and manager.

“Mr. Ritchie has testified before the commission that the general method of conduct of the company will be along the lines of that of the Fifth Avenue Coach Company. In his testimony, Colonel Green, who has made a life study of bus transportation in this country and abroad, said that Chicago offers the greatest opportunity for a bus transportation system of any city that he knew. He said that he hoped to be able to give Chicago even better service than is operated in either New York or London. The plan, he explained, calls for two types of buses, one of the double-deck type carrying sixty-eight passengers and the other a single-decker carrying twenty-five passengers.

“Feasibility Of Bus Service Determined By Traffic Study

“To show the feasibility, convenience and necessity of bus operation on the proposed route, the Chicago Motor Bus Company engaged Ford, Bacon & Davis, Inc., consulting engineers, to make a detailed traffic and transportation study. The results of these studies were introduced as evidence of why the certificate should be granted. In this survey it was shown that in the decade 1910 to 1920 the population of the south side of Chicago increased at a greater rate than that of the city as a whole, the rate of increase being 27.3 per cent for the south side and 23.6 per cent for the city. Moreover, of the total population increase in that period, namely, about 560,000, more than 40 per cent was on the south side. The result of the traffic study was that although Michigan Avenue is congested at present, the introduction of bus service would possibly increase that congestion by 3 or 4 per cent while the boulevard would be made available to a very large number of people. The fact that bus service would be a prominent factor in the conversion of south Michigan Avenue into a high-class shopping district was brought up as a point to show why the certificate should be granted.”

November 1922 Bus Transportation:

“G. A. Green in Chicago.; Noted Automotive Engineer Resigns from Fifth Avenue Company to Assume Position of Vice-President and Manager of Chicago Motor Bus Company and American Motor Bus Manufacturing Company

“IF EVER a man was a step ahead of the events in the engineering industry of which he is a part, George A. Green, the new vice-president and manager of the Chicago Motor Bus Company and the American Motor Bus Manufacturing Company, is that man. In these companies Mr. Green will again be associated with John A. Ritchie, both Mr. Ritchie and Mr. Green having resigned from the Fifth Avenue Coach Company, New York, to go to Chicago.

“Necessarily there is a community of interest existing between the two men so long associated in one enterprise, but that alone could not have held them together in New York or induced Mr. Green to cast his fortunes and his future with Mr. Ritchie in Chicago. It was more than that. It was opportunity. Opportunity held them together in New York and opportunity for both of them has induced them to go to Chicago—opportunity for Mr. Ritchie to apply to Chicago on an even bigger scale than he did in New York ideas of management and personnel which have put the New York company in the forefront of transportation organizations the world over, and for Mr. Green opportunity to apply and extend ideas which he has about bus construction and maintenance.

“Originality And Initiative Are Predominant Characteristics

“Long before anybody else in this country had begun to formulate ideas as to what a bus should be George A. Green had worked out for himself a series of axioms that has since come to be generally accepted as necessary to insure the best operating results for large-scale bus systems. It was he undoubtedly who arrived first at definite conclusions regarding the necessity for light-weight buses; regarding the question of the low center of gravity of the bus, the proper gear ratios, the best widths for frames and springs and wheel tracks; the turning radius and the need for ease in steering. He reduced to a science the matter of analyzing and recording breakages and equipment failures. He also was quick to realize that centralized unit repairs were essential for economy. His ideal of the true bus is to give Pullman car service under unified control at a 10 cent fare.

“Mr. Green thinks in large units. Having done so much to perfect the bus mechanically, Mr. Green has shown that greater mechanical perfection must be accompanied by operation which has behind it the idea of securing greater gasoline efficiency. He has said the latter, where the human element enters, is even more difficult to attain than mechanical perfection. The best thoughts of Mr. Green along these and kindred lines were packed by him into a paper which he read before the Society of Automotive Engineers more than two years ago. It is pronounced by men in the automotive industry to be a classic. In addition to all this is the work done by Mr. Green in collaboration with Ricardo, the noted English automotive engineer. The results of this work were embodied in a paper also presented before the Society of Automotive Engineers.

“Proved His Problems Before He Talked About Them

“Mr. Green has, however, looked beyond the mechanics of the matter. He is what might be termed the engineer plus. His work toward perfecting the bus mechanically has not so engrossed him that he has not seen the bus problem in its larger province as a transportation agency. Mr. Green has pronounced views about fares, personnel and other matters that the outsider might think were beyond his personal field. These he has likewise embodied in papers presented before engineering and transportation bodies, where they have been put to the acid test by transportation men sometimes none too friendly to the bus as a transportation agent. In other words, George A. Green's conclusions ring true because as a scientist he proves things before he talks about them.

“Mr. Green a Trained Engineer

“As a foundation of all the work that he has done Mr. Green has back of him a thorough training in engineering coupled with an apprenticeship in the shop and in the field that it is within the grasp of very few men to attain. Thus is an idea conveyed of the fund of information and knowledge which Mr. Green will be able to apply to the problems that come up in Chicago, first, in actual operation of the vehicles on the street and then in the manufacturing activities of the American Motor Bus Manufacturing Company. Other aspects of the remarkable career of the man were reviewed in Bus Transportation last February.”

(R.E. Fielder replaced Col. Green as Fifth Avenue Coach’s chief engineer)

November 1922 Bus Transportation:

“New Fifth Avenue Head.; F. T. Wood, Manager New York Surface Lines, Made President and General Manager Coach Company.

“FREDERICK T. WOOD has been elected president and general manager of the New York Transportation Company and the Fifth Avenue Coach Company. Mr. Wood succeeds John A. Ritchie, who resigned recently to become head of the reorganized Chicago Motor Bus Company and the American Motor Bus Manufacturing Company.

Mr. Wood has been identified with transportation development in New York City for more than twenty years. More recently he has been assistant to Job E. Hedges, receiver for the New York Railways, operating some of the more important surface lines in the boroughs of Manhattan and the Bronx.

“Under the receivership of Mr. Hedges, Mr. Wood has been the responsible operating official of the company. He brings to the Fifth Avenue Coach Company wide knowledge of bus transportation gained through years of trained observation and actual experience in New York City and in the principal capitals of Europe. He was trained in the same school of transportation as Mr. Ritchie and possesses the same aims and ideals. It is Mr. Wood's objective to carry on the same principles that have made the Fifth Avenue Coach Company one of the most talked of transportation systems in the country.

“Mr. Wood is a graduate of Williams College. He entered the transportation business twenty years ago with the old Interurban Street Railway in the horse car days. He has been identified with every progressive movement in transportation in New York city since then and enters the motor coach field with a singular knowledge of the ways and means of constructing and maintaining a modern public service corporation. For the time being, at least, Mr. Wood also will fill the vacancy caused by the resignation of George A. Green, vice president, general manager and chief engineer of the Fifth Avenue Coach Company.”

November 1922 Bus Transportation:

“Chicago (Ill.) Motor Bus Company has purchased nine ‘L’ type coaches and one ‘J’ type coach from the Fifth Avenue Coach Company, New York City. J. J. Gerlach, Pittsburgh, Pa., has purchased one ‘L’ type coach from the Fifth Avenue Coach Company. New York City. This is the second ‘L’ type purchased by him.”

December 1922 Bus Transportation:

“Fifth Avenue Bus Corporation Formed

“Announcement has been made in New York of the formation of the Fifth Avenue Bus Corporation. The charter for this concern was filed at Dover, Del., Nov. 14. The company was incorporated for the business of transportation and the capitalization entered for State taxation purposes was $40,000,000. The protective committee of the Interborough-Metropolitan 4 per cent bondholders in a recent letter to all bondholders proposed the formation of this company as a means of readjustment and disposal of the stock of the New York Transportation Company, held by the trustee in bankruptcy of the Interborough Consolidated Corporation. The New York Transportation Company is a holding company owning the entire capital stock of the Fifth Avenue Coach Company, which operates the Fifth Avenue-Riverside buses.

“Under the plan the Interborough-Metropolitan committee would acquire 103,574 shares of stock in the New York Transportation Company held by the bankrupt estate. The committee represents $61,200,000 of the $63,808,000 bonds outstanding and constituting practically the sole claim against Consolidated assets.

“The stock thus acquired is to be vested in the new corporation, which will issue therefor a sufficient number of no par value shares to furnish five shares for. each $1,000 Interborough-Metropolitan 4½ per cent bond. This stock will be vested in voting trustees. The Fifth Avenue Bus Corporation has offered to purchase 103,574 shares of New York Transportation Company stock held by the Interborough Consolidated Corporation at $3,262,581, or $31.50 a share, which was the price in the open market on Nov. 15 last. This may be paid in whole or in part in cash, by surrender of receipts by owners of allowed claims against the estate of the Interborough Consolidated Corporation for $3,262,581, or, if the court shall order that dividends in liquidation on any claims in respect of Interborough- Metropolitan 4½  per cent bonds shall be paid to bondholders, by presenting the bonds for notation thereon of an amount equal to the dividends distributable with respect to such bonds at the purchase price of the stock.

“The new corporation proposes to acquire additional shares of New York Transportation Company stock, of which 131,426 are now in the hands of the public, and in place of the old stock issue new stock to be deposited with the voting trustees.

“The officers of the Fifth Avenue Bus Corporation are: Grayson M.-P. Murphy, president; Frederick Strauss, vice president, and D. R. Noyes, treasurer. The directorate comprises Mr. Murphy, Mr. Strauss, Mr. Noyes, Charles H. Sabin, Charles S. Sargent, Jr., S. A. Van Ness and Frederick T. Wood.

“It is understood that early application will be made to list the stock of the new corporation on the New York Stock Exchange as voting trust certificates.”

December 1922 Bus Transportation:

“Fifth Avenue Coach Company Has Big Year

“According to the report of the Fifth Avenue Coach Company for the year ended June 30, 1921, given out by the New York Transit Commission, the traffic for the year was the largest since the company commenced operations. For the year 52,840,135 passengers rode the buses and paid 10-cent fares. To handle this traffic the company operated 9,472,327 revenue busmiles and picked up on an average 5.57 new passengers for every mile run. The cost of service on a passenger basis was 8.2 cents exclusive of dividend payments.

“The accompanying tables show the traffic handled for the year, the trips, and miles run and the cost of operating the service. For convenience of comparison similar figures for the previous year are also given. Calculations have also been made to reduce all figures to a bus-mile basis, and also to show what percentage each of the operating accounts bears to the total. More than half of the cost of operation was for transportation expenses, while 16 per cent went to keeping the buses in repair. The rule of the Fifth Avenue Coach Company concerning depreciation of equipment filed with the commission, provides for a charge to expense from Jan. 1, 1919. "equal to 9.15 cents per bus-mile, which is estimated to be sufficient and necessary to cover wear and tear, obsolescence and Inadequacy as may occur on all equipment." The basis includes non-revenue mileage (27,459). The amounts reserved after deducting the cost of repairs were $23,351 for "depreciation of buildings," $12,039 for "shop tools and machinery," and for "depreciation of equipment" $3,588 was withdrawn from the reserve account and credited to maintenance.”

June 30, 1923 New York Times:

“BUS LINE RAISES WAGES OF CREWS; Fifth Avenue Company Also to Give Men Annual Vacations With Pay. INCREASE ON THIRD AVENUE Advance of 5 Per Cent. Granted to 2,500 Trolley Employes, Effective on July 3.

“Frederic T. Wood, President and General Manager of the Fifth Avenue Coach Company, which operates the Fifth Avenue bases, last night made the following announcement at a meeting of 500 employees of the company at the garage at 605 West 132d Street:”

The following is a speech delivered by Richard W. Meade, the former president of the Fifth Avenue Coach Company, at the annual (1923) meeting of the Society of Automotive Engineers. It was transcribed in Vol. 15, of the SAE’s Transactions:

“DOUBLE-DECK MOTOR OMNIBUS

“By Richard W Meade - President and general manager, Peoples Motorbus Co, of St. Louis, St. Louis.

“DOUBLE-DECK horse-drawn buses did not meet with much favor in the United States, but from the earliest days have been popular with persons of all classes in England, probably due in part to the British nation’s love of outdoors and in part to the governmental policy of prohibiting the carrying of passengers in excess of the seating-capacity. Packed vehicles continued to be characteristic of transportation in this Country until public service regulation in the early days of the present century required that a reasonable number of seats should be provided. When the number of passengers was limited to the number of seats, at the time of the introduction of motorbuses on Fifth Avenue in New York City, the failure of the experiment was predicted, whereas subsequent service has proved to be the cornerstone of success. London double-deck buses with 78 seats require about 3 sq. ft. of street space per passenger, while the latest type with 50 seats require about 4 sq. ft. In this country with the increase in size of the bus the street space per passenger has been reduced from 5 to 3 sq. ft. Private passenger cars require from 14 to 112 sq. ft. The criticism of slowness of operation that has been urged against the double-deck bus may be largely neutralized by keeping the aisles free and promoting quick loading and unloading. Enclosed upper decks cannot be used in some cities on account of the low vertical headroom due to the presence of overhead railroad viaducts and the like.

“Competition in London for the business of the 15,000 cabs and 3,700 buses that were in use at the height of the era of horse-drawn vehicles produced a revolution during the years from 1905 to 1908. The result was a merger of the three larger companies and the adoption of a standard chassis embodying the best points of the 28 different types previously used, special attention being denoted to the reduction of weight and noise. As the London police regulations required each vehicle to be presented annually for re-licensing, the London General Omnibus Co. instituted the practice of completely rebuilding each of its vehicles during the winter. One of the benefits that resulted was the designing of the various units and the methods of mounting them so that the time of making adjustments and of replacing one unit with another was minimized. Increased operating coast during the war brought concessions from the police authorities regarding carrying-capacity and a type of bus was produced approximating that of the Fifth Avenue Coach Co.’s type L. Development on the Continent did not keep pace with that in England and the United States, the double-deck buses in Paris being replaced by the single-deck, while the service in Berlin contained only about 200 double-deck omnibuses.

“In 1904 the Fifth Avenue Coach Co. owned about 60 horse-drawn and 13 electric storage-battery omnibuses and was operating at a deficit, only six of the buses having sufficient seating-capacity to operate at a profit. Only 4 miles of streets was used in regular operation and the fare was fixed at 5 cents.

“After experimenting with a gasoline-electric system for 2 years, in 1906 a De Dion-Bouton chassis equipped with a standard London double-deck type of body was tried and, having been found satisfactory, 14 more chassis were ordered and the bodies were built in this Country to fit them. This same type continued to survive in London after 29 other makes had disappeared. Among the advantages were lightness, minimum unsprung weight, forced-fed lubrication, low consumption of fuel, single-disc clutch and general excellence of material and workmanship. Its disadvantages were automatic poppet valves and no direct drive on high gear.

“In 1908, with the extension of the service over Riverside Drive, a bus having double the capacity of those previously in service was tried and 25 additional one of this type were then ordered. In them modifications of London practice were introduced, including drop windows, a storage-battery for lighting, folding doors, electric signal-bells, push buttons, a heating system supplied from the engine exhaust, illuminated roller-curtain signs, double hand-rails for safety and a windshield for the driver. Horizontal tubular-type radiators were substituted for the honeycomb type. Further simplifications was made later by the use of semi-floating axles, steel wheels and standardized steel-base tires and by improving the quality of the tires. About 1910, Moline Knight sleeve-valve engines were first tried and have proved very successful.

“Refinements that have recently been added to meet the requirements of other cities in which bus serviced has been introduced include the reduction of the height to enable buses to pass under low viaducts, the increasing of the capacity to 67 passengers, rubber shock absorbers instead of spring shackles, a generator for lighting that makes it unnecessary to carry a large battery for this purpose and a regulator that prevents overcharging. In this effort to avoid complications the use of the fixed spark has been considered as indispensable. An important improvement that remains to be developed is the enclosed upper deck with a covering of the nature of a one-man top. When this has been produced it will give the bus an all-weather all-season capacity that will put it in its rightful place in the scheme of transportation.

“Among the factors that are suggested for guiding the future design of the bus are safety, maximum comfort and convenience of the passenger consistent with a reasonable occupation of street space, minimum operating cost and maximum safe speed. Steam, generated by low-grade fuel, is predicted as the future motive power.”

January 20, 1924 New York Times:

“CHICAGO MEN PLAN TO BUY 5TH AV. BUSES; Sound Out Transit Commission on Proposal to Take Over Local Lines.

“Transit Commissioner Le Roy T. Harkness confirmed yesterday the report that Chicago interests were negotiating for the purchase of the Fifth Avenue Coach Company, which operates buses on Fifth Avenue, Riverside Drive and other streets of this city. These interests include John A. Ritchie, formerly President of the Fifth Avenue Coach Company and now President of the Chicago Motor Coach Company, and John Hertz, President of the Chicago Yellow Cab Company. Mr. Harkness announced that Mr. Ritchie and Mr. Hertz had had a conference with General John F. O’Ryan of the commission and himself this week.”

‘“They said negotiations were under way but would not be consummated by them unless their plans met with the approval of the Transit Commission.’ Mr. Harkness said. ‘They said that aside from any question of the local powers of the commission they would not care to enter the New York field unless such a course were agreeable to the commission.’

‘“The matter was gone over at length and at the end of the conference General O’Ryan and I informed them that the matter would be taken under consideration by the commission and that a definite reply would be made shortly when our deliberations were completed.’

“The Fifth Avenue Coach Company has been controlled by the New York Transportation Company, but with 45 per cent of its stock in the hands of the Fifth Avenue Bus Company, which was organized after the collapse of the Interborough Consolidated Corporation. The company, although divorced from the Interborough Rapid Transit Company by last year’s reorganization, is still controlled supposedly by Interborough interests.”

June 27, 1924 New York Times:

“$25,000,000 COACH MERGER COMPLETED; Fifth Avenue and Chicago Concerns Combine Their Interests at Conference Here.; TO FORM HOLDING COMPANY.; Interborough Rapid Transit Co. Gives Up Its Control of Coach Line.; DEAL MADE BY JOHN HERTZ.; Better Transportation in New York City is Promised by Former Newspaper Copy Boy.

“John Hertz, who began as a copy boy in a Chicago newspaper office at the age of 11, yesterday at the age of 43 put through a twenty-five-million-dollar merger of the Fifth Avenue Coach Company and the Chicago Motor Coach Company. The plans for the merger were completed at a conference in the banking office of J. W. Seligman Co., 34 Wall Street.”

“As A result of the deal the Interborough Rapid Transit Company, which controlled 51 per cent of the voting stock of the Fifth Avenue Coach Company, agreed to step out, and arrangements were made for the organization of the Omnibus Company of America as a holding company for the interests involved. These are the Fifth Avenue Coach Company, the New York Transportation Company and the Chicago Motor Coach Company.

“The conference was attended by Charles H. Sabin, Chairman of the Board of Directors of the Guaranty Trust Company; Grayson M.-P. Murphy, Frederick Strauss, John A Ritchie, former President of the Fifth Avenue Coach Company, and Mr. Hertz, who is Chairman of the Board of the Chicago Motor Coach Company. It considered an offer by Chicago interests to the stockholders of the Fifth Avenue Bus Securities Company and the New York Transportation Company for a merger by means of an exchange of securities or an alternate cash purchase.

“”In the working out of the agreements it was arranges that the Interborough Rapid Transit Company should withdraw. The company some time ago deposited 51 per cent of the voting stock of the Fifth Avenue Coach Company and this stock was resold to the public. The Interborough, however, retained its voting control. It is this control that is now given up.

“New Stock to Be Listed

“J. & W. Seligman & Co. and Grayson M.-P. Murphy & Co. are acting as managers for the syndicate that is being formed to underwrite the offer to the New York security holders. Mr. Hertz announced that further details would be made public within a few days and that the stock of the new company would be listed in Chicago in a few days and later on the New York Stock Exchange.

“While on the face of things the matter appears to be in the hands of nationally known banking houses, actually it is a one-man transaction, and that man is Hertz, the former newspaper copy boy. For Hertz conceived the plan and put it through.

“Hertz left the newspaper business to sell automobiles. He gave that up to try the transportation game. He bought three taxicabs and borrowed seven more. And that was the beginning of the Yellow Taxicab Company in Chicago, which grew to such enormous proportions that Hertz became wealthy in a few months. He decided to reach out. He absorbed the Chicago motor buses, and now he has 335 of them operating over110 miles of streets. He reached out and took Ritchie from Fifth Avenue Coach Company eighteen months ago. Now he has taken the coach company itself.

‘“My plan,’ he said yesterday afternoon in his suite at the Waldorf, after he had returned from the conference, ‘always has been to give reasonable and economical transportation. That is what made Yellow Taxicab company the success it is in Chicago. We started out at 20 cents a mile. No one had dared to do that. No one else dared to do it for a couple of years. Now taxicab rates in Chicago are 15 percent lower than they are in New York.’

‘“When I got into the motor bus game in Chicago matters were in bad shape. We scrapped the equipment. We established responsible service. We did not ask to expand. We used the same streets that had been used. I said we would not expand until the people asked it. In the end they did ask it and now we have 335 buses running over 110 miles of streets as compared to 315 buses on twenty-nine miles of streets in New York.’

“To Give New York What It Wants

‘“We believe that New York wants responsible and economical transportation and we are going to give it. The trouble here has been absentee landlordism. The Interborough owned the company but hired men ran it. I believe that the owners should operate public utilities.’

‘“Much of the equipment here is obsolete. We are going to replace that equipment as fast as we can. We are not going to let it wear out; we are going to scrap it. In Chicago we have buses that glide past as quietly as an electric automobile and they are as comfortable as any automobile. That is the type of coach we are going to bring to New York.’

‘“We are not going to expand right off. We are going to follow the plan laid down in Chicago. We are going to wait until the public asks us to expand. And we will give them such good service that they will ask us to expand.’

‘“I known something about the transportation business, I think. I have been a chauffeur. Every one of the officers of my company, with the exception of the auditors and the bookkeepers, has been a chauffeur. We take in no outsiders. A man must come in and work up. We go on the merit system. And all our employees become stockholders immediately on an easy payment plan.’

‘“I view the problem as a three-cornered affair. There are the investors, the employees and the public. The investors must have a fair return, the employees must have a good living wage and the public must be given responsible and economical transportation. The fare here is ten cents. I don’t know that there will be any change in that, but I do not know that there will be very much of a change in what they get for their money.’

‘“The ‘Public Be Damned’ policy is old stuff. I know that we must have the good-will of the public. My efforts will be directed to winning that good-will and if I do, as I will, when the public wants us to expand we will be ready.’”

July 1, 1924 New York Times:

“BUS MERGER PLAN GIVEN IN DETAIL; New Organization to Be the Omnibus Corporation, With Hertz as Chairman.; SHARES TO BE EXCHANGED.; Syndicate Is Formed to Purchase New Stock Not Taken by Old Company Holders.

“Financial details of the merger under which the motor buses operated in New York and Chicago will be placed under a single management were announced yesterday by J. and W. Seligman Co. and Grayson M-P Murphy Co., managers under the plan.

“The plans for unification, recapitalization and reorganization involve three companies now engaged in the hauling of passengers by motor bus. They are the Fifth Avenue Bus Securities Company, a Delaware corporation, which now owns a majority of the stock of the New York Transportation Company; the New York Transportation Company of New York, which owns the entire capital stock of the Fifth Avenue Coach Company and which owns and operated bus lines in New York, and the Chicago Motor Coach Company, Delaware corporation, which owns the entire outstanding stocks of the Chicago Motor Coach Company, which owns and operates motor bus lines in Chicago and Cook County, Illinois.

“These companies will be merged into a new organization to be known as the Omnibus Corporation, of which John Hertz of Chicago will be Chairman of the board, and John A Ritchie will be President. The corporation will have an authorized issue of cumulative preferred stock of 250,000 shares, par value $100 each, of which 106,378 shares are to be presently issued, and of 1,500,000 shares of common stock without par value, of which 622,195 shares are to be issued.

“The basis of exchange for the stock of the present corporations will be as follows:

Holders of the Fifth Avenue Bus Securities Corporation stock are to receive one share of 8 per cent, convertible cumulative preferred of $100 par value and one and one-half shares of common stock in the Omnibus Corporation for each ten shares without par value of the present holdings.

“Holders of New York Transportation Company stock are to receive three and one-tenth shares of the new 8 per cent, convertible cumulative preferred stock and four and sixty-five one hundredths shares of the new common stock for each ten shares of $10 par value of their present holdings.

“Holders of Chicago Motor Coach Corporation preferred stock are to receive the new 8 per cent, convertible cumulative preferred stock, share for share in place of their present holdings.

“Holders of Chicago Motor Coach Corporation common stock are to receive six shares of the new common stock for each share of their present holdings.

“The preferred stock will be known as Series A and will carry dividends at the rate of 8 per cent, cumulative from July 1, 1924, and will be redeemable at $115 a share. Stockholders of Fifth Avenue Bus Securities Corporation will have the option of selling their new securities issuable under the plan to a banker’s syndicate at a price equal to a banker’ syndicate at a price equal to $10 in cash for each share of the present holdings. New York Transportation Company stockholders will have a similar option at a price equal to $31 in cash for each share of their present holdings. Stockholders of these corporations will receive the right to subscribe at $10 a share for not more than 78,878 shares of new Omnibus Corporation common stock. Stockholders of the Chicago Motor Coach Corporation will have the right to subscribe at the same price for 100,000 shares of new stock in the proportion of two shares of new stock for each share owned.

‘A syndicate has been formed composed of J. and W. Seligman & co., the Guaranty Company of New York and Grayson M-P Murphy & Co., which agrees to purchase the new stock which stockholders of the Fifth Avenue Bus Securities Corporation and the New York Transportation Company may elect to sell under the terms of the plan, and all of the additional stock offer to stockholders of the existing companies and not subscribed by them. The common stock of the Omnibus Corporation will be subject to a voting trust, of which John Hertz, Edward N. D’Acona, Harold E. Forman, Charles A McCulloch, Grayson M.-P. Murphy, Charles H. Sabin and Frederick Strauss are to be the trustees.

“New earnings of the Fifth Avenue Coach Company in 1923 are put at $1,228,380. Net for the Chicago operating company for 1923 was $304,220.

“The Chicago company operates 335 buses over eighty-five miles of streets and parkways. The New York company operates an average of 303 buses over approximately twenty-five miles of the city’s main thoroughfares.”

September 10, 1924 New York Times:

“FIFTH AV. COACH CO. BOARD REORGANIZED; John A. Ritchie Made Chairman -- Omnibus Corporation Tells of Extensions in St. Louis.

“Extension of the People's Motor Bus Corporation in St. Louis, with twelve new routes, covering forty-three additional miles in that city, was announced last night by the Omnibus Corporation, following a reorganization meeting of the Board of Directors of both the Fifth Avenue Coach Company and the New York Transportation Company at the general offices, 605 West 132d Street. The new St. Louis service, it was stated, will be installed at once, with the purchased of seventy-five new motor coaches at a cost of about $1,000,000.

“Important changes of officials were made as a result of the meeting. Colonel Grayson M-P. Murphy resigned the Chairmanship of the Board of Directors, but remains as a member. H.H. Vreeland and E.J. Berwin resigned as directors, John Hertz of Chicago, Chairman of the Board of the Omnibus Corporation, and D. Raymond Noyes succeeded Vreeland and Berwind as directors. John A Ritchie, President of the Omnibus Corporation, was elected Chairman of the reorganized board.

“The stock control of the Fifth Avenue Coach Company is in the hands of a voting trust, extending for a period of five years. The voting trust has four members from Chicago and three from New York, as follows: John Hertz, John A. Ritchie, Charles A. McCulloch, and Edward D. Ancona, Chicago; John C. Jay, Colonel Grayson M-P Murphy and Charles H. Sabin, New York.

“The full Fifth Avenue Coach Company board is reorganized as follows: Chairman, John A Ritchie; members, John Hertz, Frederick T. Wood, Philip T Dodge, James B.A. Fosburgh, John C. Hay, Frederick L. Lavanburg, Colonel Grayson M-P. Murphy, Charles H. Sabin, Henry Sanderson, Edmond E. Wise, Frederick Strauss and D. Raymond Noyes.

“The operation of the company will continue under the presidency of Frederick T. Wood as President and General Manager, and his present official staff.”

April 7, 1925 New York Times:

“5TH AV. BUS CONTROL PASSES TO CHIGAGO; Omnibus Corporation Interests Have Majority in Enlarged Board of Directors.

“Formal control of the Fifth Avenue Coach Company passed to the Chicago owners of stock in the New York Transportation Company, holding company for the coach concern, at a meeting of the latter company at 15 Exchange Place, Jersey City, yesterday. The number of directors was increased from thirteen to twenty-three to give the Chicago holders a majority of the board. The following were elected to the Board of Directors:

“From New York – Philip T. Dodge, James B.A. Fosburgh, John C. Jay, Frederick L. Lavanburgh, William H. Lowe. Grayson M.-P. Murphy, Charles H. Sabin, Henry Sanderson, Frederick Strauss, Frederick T. Wood and Edmond E Wise.

“From Chicago – Edward N. D’Acona, Alfred Ettlinger, Leonard S. Florsheim, Harold E Foreman, John D. Hertz, Albert D. Lasker, Otto W. Lehman, Charles A. McCulloch, John A. Ritchie, John R. Thompson, Harvey T. Woodruff and William Wrigley Jr.

“A large increase in the number of bus passengers carried by the three subsidiary companies of the Omnibus Corporation of Chicago, one of which is the Fifth Avenue Coach Company, was shown in a report for March and the first quarter of the current year, made public yesterday.

“A tabulation showing the number of passengers carried and a comparison with similar periods last year follows:

Fifth Avenue Coach Company of New York:
		1925		1924
March	$	5,885,205	$	4,724,909
First Quarter	$	14,986,319	$	12,203,580

Chicago Motor Coach Company:
		1925		1924
March	$	4,281,000	$	2,801,000
First Quarter	$	11,516,000	$	6,592,000

People’s Motorbus Company of St Louis:
		1925		1924
March	$	2,097,203	$	748,126
First Quarter	$	5,746,741	$	1,760,098

“The Fifth Avenue Coach Company began the operation of 5.4 miles of route in the Bronx on Oct. 10, 1924. The St. Louis company opened 43 miles of new routes during the year and the Chicago company began operation on the West Side in that city in March, 1924.”

June 28, 1925 New York Times:

“TAXI HEAD SILENT ON MERGER PLANS; Hertz of Yellow Company Conferred With General Motors Men at Detroit. ALSO AFTER BUS CONTROL Financial District Believes Concern That Controls Fifth Avenue Vehicles Is Involved.

“Reports of a contemplated merger of the General Motors Corporation and the Yellow Cab Manufacturing Company and the Yellow Coach Company of Chicago, were neither confirmed nor denied by John Hertz, head of the taxicab and coach companies, yesterday, according to a dispatch from Chicago.”

July 8, 1925 New York Times:

“YELLOW CAB CO. NOW IN GENERAL MOTORS; Directors and Bankers of Both Concerns Agree to the $16,000,000 Merger.; YELLOW TO BUILD TRUCKS.; Automobile Makers to Turn Over This Part of Its Business – Will Be Active In Bus Field.

“Official details covering the negotiations whereby the General Motors Corporation has acquired a controlling interest in the Yellow Cab Manufacturing Company of Chicago were made public yesterday by representatives of both companies. Completion of the deal joins the largest automobile and taxicab manufacturing units in the country, and the working agreement between the two organizations has been consummated for the purpose of expanding in the motor truck and bus fields. Under the agreement the truck division of General Motors organization will be transferred to the Yellow Cab Corporation, and in exchange the General Motors Corporation receives 800,000 shares of the common stock, a controlling interest in the Chicago organization.

“The Boards of Directors of both companies have unanimously agreed within the past few days to link the tow organizations, and the plan also has the support of the two banking concerns which represent the companies. The plan, however, has yet to be ratified by the stockholders of the Yellow Cab Manufacturing Company.

“Announcement of the details was issued for the General Motors Corporation by Alfred P. Sloan Jr., President of that organization. The statement of John Hertz, President of the Yellow Cab Company, and Lehman Brothers, the bankers for the latter company, was issued through the law firm of Chadbourne, Stanchfield & Levy.

“Change in Capital Structure

“According to the statement of Mr. Sloan, the plan calls for a readjustment of the capital structure of the Yellow Cab Manufacturing Company and the sale to it of all the stock of a new corporation, to which General Motors Corporation will transfer the plants and other assets of the General Motors truck division. The property so transferred, it is stated, will have an aggregate net book value of $16,000,000, including about $10,500,000 of net working capital, of which about $5,000,000 will be in the form of cash, this giving the new combination ample working capital. For this transfer the General Motors Corporation will receive $16,000,000. This $16,000,000 will be used for the acquisition of 800,000 shares of the common stock of the new Yellow Truck and Coach Manufacturing Company, which will be the name of the new company, which will be the name of the new company to be organized to take over the present taxicab business and the General Motors truck division.

“The capitalization of the new Yellow Truck and Coach Manufacturing Company, following completion of the plan, will consist of 150,000 shares of 7 per cent, non-voting cumulative preferred stock of $100 a share par value, 600,000 shares of Class B stock of $10 a share par value, and 800,000 shares of common stock of $10 a share par value.

“Regarding the position of the stockholders of the Yellow Cab Manufacturing Company, it is stated that the 6,000 shares of Class A stock, valued at $600,000 par, will be retired. Holders of the present Class B stock of the company will receive Class B stock in the new Yellow Truck and Coach Company on a share for share basis, and in addition they will receive an extra dividend equal to $25 a share, in the form of the 7 per cent, cumulative stock of the new company.

“Expects Great Economies

“Commenting upon the importance of the deal from General Motors standpoint, Mr. Sloan in his statement said: ‘The Yellow Cab Manufacturing Company, apart from its position in the taxicab business, occupies a strong position in the bus field. A merger of the General Motor truck business with the business of that company is calculated to result in material economies in the manufacturing and distribution end of these important lines of business.’

‘“General Motors Corporation has recognized the importance of the bus, and believes that the proposed merger with the Yellow Cab Manufacturing Company will immediately place it in a strong position in the bus business, with the opportunity of enjoying a really unique position in the future development in that field. It also believes that is position in the heavy duty truck business will be greatly strengthened as a consequence of the combined management and the benefits derived from more economical manufacture and distribution.’

“Mr. Hertz’s statement said that ‘for a long time the Yellow Cab Manufacturing Company has been preparing to engage vigorously in the manufacture of trucks and commercial bodies, in addition to its established lines of motor buses, taxicabs and its present products. The acquisition of the General Motors facilities will immediately enable it to become a leading factor in the truck business and will secure to it at once the excellent facilities and the vast resources connected with the General Motors Corporation, a result which otherwise could not possibly have been accomplished without many years of effort.’

“From the standpoint of the stockholders of the Yellow Cab Manufacturing Company, Mr. Hertz said this deal is ‘the greatest achievement in their history. This connection with General Motors organization will assure to the Yellow company the great advantages of economical purchase in large quantities, of quantity production, intensive sale management, large savings in manufacture and the benefit of the highest technical automotive experience in the world. In association with General Motor Corporation, the premier automobile manufacturers for the company will far exceed any that they have ever had in their history.”

July 17, 1925 New York Times:

“HERTZ AND RITCHIE HEAD TRUCK MERGER; To Be Chairman and President of Yellow Cab-General Motors Combine.; SEE BIG CHANGE IN INDUSTRY.; Door-to-Door Long-Distance Transportation Probable, Head of Board Says.

“John D. Hertz, President of the Yellow Cab Manufacturing Company, has announced the personnel of the Yellow Truck and Coach Manufacturing Company, which has been organized for consolidating the truck division of the General Motors Corporation, the Yellow Cab Manufacturing Company and the Yellow Coach Manufacturing Company into one company. Mr. Hertz will be Chairman of the Board of Directors and John A. Ritchie, Chairman of the Board of the Fifth Avenue Coach Company, will be President.

“George A. Green, formerly Chief Engineer of the Fifth Avenue Coach Company, will be Vice President in charge of engineering; Paul H. Geyser will be Vice President In charge of production; Irving A. Babcock, Vice President in charge of finance and accounting; P.L. Emmerson, Vice President in charge of sales, and Otto E. Stoll, Vice President and manager in charge of the motor truck division.

“This combination of the cab, motor coach and truck manufacturing interests of the companies, according to Mr. Hertz, will result in great economy in the purchase of raw materials and the production of vehicles, and will give the new company one of the largest selling organizations in the world. It will thus be a benefit, he adds, not only to the security holders, but to the purchasers of vehicles and through them directly to the public.

“Mr. Hertz formal statement, which appears in the current issue of Motor Coach, says that the combination of the three companies ‘will enable us to carry out rather extensive plans we have had in mind for some time, to become the largest manufacturer of commercially operated, revenue-producing vehicles in the world. We have established a reputation through many years of manufacturing as the producers of the highest class and biggest revenue-producing taxicabs, coaches and light-delivery wagons in the world.’

“Pointing out that there will be no radical changes in the policies of the Yellow Cab Manufacturing Company, Mr. Hertz says ‘this is a most logical combination and under the new order of things will not only give us the manufacture of a line of commercial vehicles more comprehensive than any other manufacturer, but will enable us to incorporate in the design and construction of our trucks many of the operating and manufacturing refinements to be found in the construction and design of our motor coaches and taxicabs. Incidentally I might say that the General Motors Company truck division is a highly successful organization. It has an experience in the manufacture of heavy-duty vehicles extending over many years, and has in service today many of the heavy-duty trucks doing satisfactory duty all over the world.’

“Commenting on the development of the industry, Mr. Hertz adds that ‘we feel that our industry is on the brink of a tremendous evolution. Throughout the nation, all thinking transportation men appreciate that the motor coach and motor truck are destined to fill an increasingly important niche in the general scheme of things, For some time we all have been preparing for this eventuality.’

‘“I believe that the time is near at hand when a passenger will buy a railroad ticket calling for transportation of himself and baggage from his home to the place at which he intends to stop in some distant city. In other words, the purchase of his original ticket will include such transportation as taxicabs and coaches. This equally true of freight. In the near future I believe we will see the railroad shipper’s bill of lading include pick-up service and delivery, as well as transportation from one place top another. In other words, railroad companies must necessarily avail themselves of the use of such vehicles as ours in order to carry out a complete plan of transportation.’”

October 9, 1925 New York Times:

“8,788,935 MORE BUS FARES.; Fifth Avenue Company Reports Big Passenger Gain for Nine Months.

“An increase of 8,788,935 revenue passengers carried by the Fifth Avenue Coach Company lines in the nine months ended Sept. 30, compared with the same period last year, is shown in the report of the Omnibus Corporation of Chicago for its subsidiaries. The New York company transported 54,532,985 passengers against 45,744,050 last year.”

October 1, 1926 New York Times:

“22 NEW 5TH AV. BUSES PUT INTO OPERATION; Lower Deck Seats Fitted With Leather -- Automatic Fare Boxes Installed on Platforms.

“Fifth Ave Coach Co installs 22 new double-decked cars”

February 18, 1927 New York Times:

“FIFTH AV. COACH CO. TESTS STEAM BUSES; Experiments With Automotive Boiler as Means to Aid in Solving Traffic Problem.; CALLED CHEAP, FLEXIBLE.; Engineer Sees a Revolutionary Effect-Street Railway Also Said to Be Interested.

“The possibility that steam may be used to help solve New York City's surface transit problem was disclosed yesterday when it was learned that the Fifth Avenue Coach Company is testing a standard bus chassis driven by a new type of automotive boiler. Used with a steam engine of conventional type, the vehicle is said to combine flexibility and economy. The cost of fuel and maintenance for the improved boiler are estimated to be one-third of the cost of a standard gasoline motor. The boiler operates automatically and the system of control is simpler than that of an automobile. It was perfected by Frank J. Curran, an engineer now living in New York City.

“The test of the new device are under the supervision of L.H. Palmer, Vice President of the Fifth Avenue Company, and William McClellan of the engineering firm of McClellan & Junkersfeld, Inc. Ten tons of railway car axles are used on the test chassis to approximate the weight of a fully loaded bus. The odd-looking vehicle is being driven around the city, particularly in the hilly districts of Washington Heights.

“Testing of the boiler by the Fifth Avenue Coach Company follows its application for franchises to operate a citywide bus system.

“Expects Successful Tests

“Both Mr. Palmer and Dr. McClellan said the test were not far enough advanced to determine definitely how it would operated under actual working conditions. However, Dr. McClellan said that if test proved as successful as he expected the result would be almost as revolutionary in its effects on heavy duty automobile engineering on heavy grades and in countries where gasoline was high-priced.

‘“It might seem odd that what is popularly supposed to be an almost outworn type of motive power should be utilized to solve the latest problems of street transportation,’ said Dr. McClellan in explaining the new device. ‘Doubtless many persons will recall the unsatisfactory results obtained when steam was first applied to road vehicles in the present century. The fact remains, however, that in twenty-five years engineering and manufacturing methods have evolved to a point that makes application of steam not only practicable but highly desirable for heavy duty.’

‘“The boiler used in the Fifth Avenue coach tests is of the water tube variety. It is designed to generate large quantities of steam immediately, thus meeting the requirements pf vehicles that must start and stop with the minimum loss of time. Built to withstand a pressure of 3,000 pounds to the square inch, the boiler operated at 800 pounds. In the boiler itself there is twenty-seven gallons of water under this pressure. This means that there is constantly available a reservoir of power equal to moving a heavy vehicle tow or three block without consumption of additional fuel.’

“Operates On Any Liquid Fuel

‘“The boiler operates with any kind of liquid fuel, such as domestic heating oil, costing 7 cents a gallon, as against gasoline costing from 20 to 30 cents a gallon. When the engine stops no steam is consumed, which means a further economy. Both boiler and engine may be installed in any truck chassis after removable of the clutch and transmission gears.’

“Dr. McClellan said the device should prove a great help to street railway companies, which must sometimes operated gasoline buses at considerable losses. It is also being studied by one large city electric railway as a substitute for the expensive underground conduit system. In an effort to improve the transmission gears on these vehicles some of the larger transit companies have used a gasoline-electric type of bus. Use of the steam device would eliminate the need of electrical transmission devices, according to Dr. McClellan.

“Dr. McClellan is a former President of the American Institute of Electrical Engineers and designed the boiler equipment in the Avon and Cahokia plants of the North American Company and in other large power installations. He was a member of the Muscle Shoals Commission and former Chief Engineer of the New York State Public Service Commission.”

The Fifth Avenue Coach Story is concluded for now.

© 2004 Mark Theobald - Coachbuilt.com

 

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