The Checker Cab stands as an undeniable American icon, a symbol of urban resilience and a testament to a fascinating chapter in transportation history. Much like Route 66, the story of the Checker Cab is interwoven with myth and a complex reality, far more intriguing than often believed.
Origins of an American Icon
Both the legendary Route 66 and the ubiquitous Checker Cab share a peculiar fate: they are American icons with vast fan bases, yet neither officially exists in their original form. Route 66 was decertified in 1985, while the very last Checker rolled off the Kalamazoo assembly line in 1982. The origins of Checker are often obscured by myth, with few realizing its foundations were laid by John Hertz, famous for his rental car empire, rather than solely by Morris Markin.
Beyond the simple narratives of these icons lie gripping tales of fierce competition for dominance within the taxi industry. This struggle involved manufacturers, franchised companies, and independent operators, marked by mergers so convoluted they attracted federal investigators, and, at times, led to literal “blood in the streets.”
The Wild West of the Taxi Industry
In the 1920s and early 1930s, the taxi industry operated largely unregulated in most American cities. This created a chaotic environment where “fast-buck artists,” desperate individuals, and even gangsters became taxi drivers, all vying for a limited market. They drove a motley assortment of vehicles: financed Checkers, worn-out used cars, refurbished wrecks, stolen vehicles, family sedans, and military surplus. Signs ranged from homemade placards to elaborate lit displays, each competing for attention.
Drivers worked grueling shifts—five, ten, even twenty hours—setting competitive fares. When competition proved unprofitable, the solution often involved eliminating rivals. A 1931 study in New York City found that taxis were involved in 21,000 of 23,000 motor vehicle accidents. An August 1931 Literary Digest article further highlighted the brutality, reporting that: “Differences are now settled with fists, rocks, and clubs. The Bronx became famous for these affairs of honor. In one of them, the peacemaker was knocked down with a brick while another driver jumped into a cab and drove over the body.” This paints a vivid picture of the sheer anarchy on city streets.
Corporate Contention: Morris Markin’s Strategic Ascendancy
The chaos on the streets was mirrored, perhaps even surpassed, by the corporate machinations at the highest levels of the industry. In 1928, through a series of shrewd stock manipulations, Morris Markin, the astute founder of Checker, was ousted from his presidency by a syndicate of influential auto executives and major stockholders.
While battling to regain control of his company, Markin simultaneously embarked on an ambitious campaign to acquire taxi companies and major metropolitan fleet operators. His initial move was the establishment of the National Transportation Company, a venture inspired by John Hertz’s earlier efforts to create a market for his Yellow Cab taxis. By the end of that year, Markin’s National Transportation Company commanded over 1,000 taxis in New York City. He also secured partial ownership of Hertz’s Chicago Yellow Cab Company through the outright purchase of Parmelee Transportation Company, which had previously acquired a stake in Hertz’s enterprise. The intricate web grew denser as Markin, via National Transportation Company, then acquired Yellow Cab Company of Pittsburgh and Yellow Taxi Company of Minneapolis, subsequently integrating this entire operation into the Parmelee Transportation Company. The Chicago Yellow Cab Company became the linchpin of Markin’s expanding empire, functioning as a holding company complete with its own insurance and extensive maintenance facilities.
The Cord-Markin Complex Alliance and Federal Scrutiny
With a firm grip on the taxi business in several major cities, Markin refocused his efforts on recapturing Checker. The Kalamazoo Gazette reported on August 16, 1933, that E.L. Cord obtained control of Checker through Markin’s stock options, which were about to expire. Markin sold these options to Cord, who then exercised them, replacing the directors who had voted for Markin’s removal with his own appointees.
The true complexity of this takeover, however, was not fully disclosed in the newspaper. Cord, who owned Auburn-Cord-Duesenberg and was a primary stockholder in Lycoming, an engine manufacturing company, became chairman and a director at Checker. He then transferred the production of Saf-T-Cab, a commercial line of the Auburn division, to Checker. Consequently, Lycoming, which supplied engines for Cord, Duesenberg, and Auburn, would now also power Checker Cab vehicles. To further complicate matters, the sale of Saf-T-Cab vehicles was still channeled through Auburn, but sales to taxi companies were exclusively handled by the Markin-controlled Parmelee Transportation Company’s taxi division in Cleveland.
This intricate, multi-layered arrangement was innovative, curious, and undeniably lucrative. Its complexity did not escape the attention of the Securities and Exchange Commission (SEC). A Bill of Complaint filed on August 7, 1937, on charges of stock manipulation, listed Cord as chairman of the board, a director, and a member of the executive committee of Cord Corporation, as well as chairman and director of Checker Cab Manufacturing Company, and a director of the Auburn Company. Markin was listed as president of Checker Cab Manufacturing Company and its major stockholder.
The SEC’s bill also highlighted 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 entity). Parmelee was also a major contractor for baggage delivery from railroad stations to hotels in numerous cities, alongside Chicago Yellow Cab, Incorporated. Chicago Yellow Cab itself was a maze of interlocking enterprises. Cord controlled the largest manufacturer of taxi equipment, such as meters, with products sold through a division of Chicago Yellow Cab. This multifaceted company also boasted a finance division, enabling operators and franchise companies to purchase Saf-T-Cabs or Checkers on installment plans, and a specialized insurance company for taxi fleet owners. Furthermore, it served as the sole authorized repair facility in Chicago for Checker-built vehicles. The vertical and horizontal integration was staggering.
Markin’s Ultimate Triumph and Checker’s Enduring Legacy
Despite indictments against both Cord and Markin, the charges were ultimately dropped, and the investigation fizzled out. The primary reason for this was the collapsing Cord empire, which led E.L. Cord to liquidate a wide array of his holdings, including his share of Checker. This turn of events delivered full control of Checker back into Morris Markin’s hands. Markin now presided over the largest manufacturer of vehicles specifically designed for taxi applications, dominated taxi fleets in several major cities, and controlled the sale of essential taxi equipment. His delight must have been immense when cities, seeking to curb “wildcatting” and violence, began dictating that only purpose-built vehicles could legally operate as taxis. This regulation effectively created a protected market for his specialized Checker Cab vehicles.
While Morris Markin’s empire never rivaled the scale of Henry Ford or Walter Chrysler, and Checker never directly competed with automotive giants like General Motors or Chrysler in mass-market passenger cars, it carved out a unique and enduring niche. The company successfully created an authentic American icon—the distinctive Checker Cab—whose legacy continues to resonate long after its final vehicle rolled off the assembly line. The enduring image of a yellow Checker Cab navigating bustling city streets remains etched in the cultural consciousness, a symbol of a bygone era and a testament to a fascinating, often turbulent, period in American transportation history. Its robust design, spacious interior, and unmistakable silhouette made it a beloved fixture, cementing its place as a true automotive legend.
