Rise of an Empire – The Story of Checker Cab
The story of the Checker Cab, much like the iconic Route 66, is a tale of American ingenuity, resilience, and a legacy that persists even after its physical presence has faded. Both the Checker Cab and Route 66 hold a special place in the hearts of many, representing a bygone era of Americana. While Route 66 was officially decommissioned in 1985, the last Checker Cab rolled off the assembly line in Kalamazoo, Michigan, in 1982, marking the end of an era for a vehicle synonymous with urban transportation.
Delving into the history of the Checker Cab reveals a narrative far more complex than a simple story of automobile manufacturing. Just as the origins of Route 66 are surprisingly rooted in the late 19th-century bicycle craze, the foundations of the Checker Cab empire were laid by none other than John Hertz, the visionary behind the rental car industry. However, the true drama lies not merely in the invention of a vehicle, but in the fierce and often ruthless struggle for dominance within the taxi industry itself. This involved manufacturers, franchised companies, and independent operators locked in a battle that encompassed intricate mergers, federal investigations, and even violence in the streets. The story of the Rise of an Empire – The Story of Checker Cab is a true American saga.
The early days of the taxi industry, particularly in the 1920s and early 1930s, were characterized by a distinct lack of regulation in many cities. This created a chaotic environment where a diverse array of individuals – from opportunistic "fast-buck artists" to desperate individuals trying to provide for their families, and even organized crime figures – all competed for a limited share of the market. These drivers operated a motley assortment of vehicles, ranging from newly financed Checkers to dilapidated used cars, refurbished wrecks, and even stolen vehicles. Family sedans and military surplus vehicles were also common sights, adorned with homemade, lit, or hand-painted signs to attract fares.
The life of a taxi driver during this period was arduous and competitive. Drivers routinely worked grueling shifts, often exceeding ten or even twenty hours a day. Fares were kept low to attract customers, but when competition became too fierce, more aggressive tactics were employed to eliminate rivals. This volatile atmosphere often led to conflicts and violence. A 1931 study of 23,000 motor vehicle accidents in New York City revealed that a staggering 21,000 involved taxi cabs. An article in the August 1931 issue of Literary Digest highlighted the severity of the situation, noting that disputes were frequently settled with "fists, rocks, and clubs." The Bronx, in particular, became notorious for these violent encounters, with one incident involving a peacemaker being struck with a brick and another driver running over a body with his cab. The cutthroat competition was fierce during the Rise of an Empire – The Story of Checker Cab.
The turmoil wasn’t confined to the streets; it extended to the corporate level as well. In 1928, Morris Markin, the founder of Checker, was ousted from his position as president through a series of complex stock manipulations orchestrated by a syndicate of auto executives and major stockholders. This power grab ignited a fierce battle for control of the company. While fighting to regain control of Checker, Markin was simultaneously working to expand his influence over taxi companies and major metropolitan fleet operations. His initial strategy involved establishing the National Transportation Company, a concept inspired by John Hertz’s earlier efforts to create a market for his Yellow Cab taxis.
By the end of the year, Markin had successfully amassed control of over 1,000 taxis in New York City through the National Transportation Company. He also acquired a partial ownership stake in the Chicago Yellow Cab Company, previously owned by Hertz, through the purchase of Parmelee Transportation Company, which had earlier acquired a percentage of Hertz’s company. To further complicate matters, Markin acquired Yellow Cab Company of Pittsburgh and Yellow Taxi Company of Minneapolis through the National Transportation Company, subsequently merging this entire enterprise into the Parmelee Transportation Company. These actions showcased the complexity of Markin’s business strategies during the Rise of an Empire – The Story of Checker Cab.
The cornerstone of Markin’s burgeoning empire was the Chicago Yellow Cab Company. This was more than just a taxi operation; it was a holding company with its own insurance arm and a substantial maintenance facility. With a firm grip on the taxi business in several major metropolitan areas, Markin turned his attention back to reclaiming control of Checker. An article in the August 16, 1933, edition of the Kalamazoo Gazette reported that E.L. Cord, owner of Auburn-Cord-Duesenberg, had gained control of Checker through a deal centered around Markin, who had been previously removed as president. Markin held options on a sufficient number of shares to regain control, but these options were about to expire when he was removed from his position. He subsequently sold these options to Cord, who exercised them just before expiration, gaining control of the company and replacing the directors who had voted for Markin’s removal with his own appointees.
The article omitted the intricate details that made this takeover possible. Cord, also the primary stockholder in Lycoming, an engine manufacturing company, became chairman of the board and a director at Checker. He then transferred the manufacturing of the Saf-T-Cab, a commercial line of the Auburn division, to Checker. This meant that Lycoming, which already supplied engines for Cord, Duesenberg, and Auburn, would now also supply engines for Checker.
The sale of Saf-T-Cab vehicles was further complicated by arrangements that dictated they would still be marketed through Auburn, but sales to taxi companies would be handled through Markin’s Parmelee Transportation Company taxi division in Cleveland. This arrangement was innovative, curious, and, above all, lucrative. However, the Securities and Exchange Commission (SEC) took notice, initiating an investigation into potential stock manipulation. The innovative strategies played a key role during the Rise of an Empire – The Story of Checker Cab.
In a Bill of Complaint filed on August 7, 1937, Cord was identified as chairman of the board, a director, and a member of the executive committee of the Cord Corporation, as well as chairman of the board and a director of the Checker Cab Manufacturing Company, and a director of the Auburn Company. Markin was listed as the president of the Checker Cab Manufacturing Company and its major stockholder. The bill also alleged that Checker Cab Manufacturing controlled a syndicate that included Parmelee Transportation Company, the subsidiary through which Auburn sold Saf-T-Cabs powered by Lycoming engines (a Cord-controlled company), the major contractor for baggage delivery from railroad stations to hotels in numerous cities, and Chicago Yellow Cab, Incorporated.
Chicago Yellow Cab was itself a complex web of interconnected enterprises. The largest manufacturer of taxi equipment, such as meters, was controlled by Cord, and its products were sold through a division of Chicago Yellow Cab. The company also had a finance division that allowed operators and franchise companies to purchase Saf-T-Cabs or Checkers on the installment plan, as well as a specialty insurance company for taxi fleet owners and operators. Furthermore, it was the only authorized repair facility in Chicago for Checker-built vehicles.
Despite the indictments of both Cord and Markin, the charges were eventually dropped, and the investigation fizzled out. The primary reason for this was the collapse of the Cord empire, which led E.L. Cord to liquidate a wide range of holdings, including his stake in Checker. Markin, once again in control, now possessed the largest manufacturer of vehicles specifically designed for taxi use, dominated the taxi fleets in several major cities, and controlled the sale of taxi equipment. He must have been delighted when cities began implementing regulations that mandated only purpose-built vehicles could operate as taxis, effectively eliminating the "wildcatting" and violence that had plagued the industry.
While Morris Markin’s empire never reached the scale of Henry Ford’s or Walter Chrysler’s, and Checker was never able to compete with General Motors or Chrysler, the company did create an American icon that continues to resonate long after its closure. The Checker Cab, with its distinctive design and association with urban life, has become a symbol of a particular era in American history. The Rise of an Empire – The Story of Checker Cab might have ended, but the legend lives on.
The Checker Cab’s enduring appeal stems not just from its utilitarian design but also from its cultural significance. It represents a time when American manufacturing was at its peak and when the automobile was transforming the urban landscape. The Checker Cab, more than just a vehicle, became a fixture in countless movies, television shows, and photographs, solidifying its place in the collective American memory. Its iconic status is a testament to the vision of Morris Markin and the enduring appeal of a vehicle designed for a specific purpose and built to last. Though the Rise of an Empire – The Story of Checker Cab is long gone, the iconic vehicle still remains in our hearts.
© Jim Hinckley, January 2014, updated May 2023.