North American Company
| Company type | Holding company |
|---|---|
| Industry | Utilities, Public transport |
| Founded | June 14, 1890 in New Jersey, United States |
| Founder | Henry Villard |
| Defunct | 1946 |
| Headquarters | Manhattan, New York City , United States |
Area served | United States |
| Products | Public utilities, Public transport enterprises |
The North American Company was a holding company established in New Jersey on June 14, 1890, under the leadership of Henry Villard, taking over the assets previously owned by the Oregon and Transcontinental Company. It possessed ownership of various public utilities and public transport enterprises and was ultimately dissolved in 1946 to adhere to the requirements of the Public Utility Holding Company Act of 1935.
Its main office was located at 60 Broadway in Manhattan.
History
In 1889, New Jersey enacted laws designed to encourage corporations to acquire control over other companies, which prompted many trusts to reorganize as holding companies. This legal change motivated Oregon and Transcontinental to reincorporate as the North American Company in New Jersey.
At the inception of the Dow Jones Industrial Average on May 26, 1896, North American was included among the initial 12 stocks but was soon removed. The company reentered the DJIA in 1928 when it expanded to 30 stocks but was taken off again by 1930.
By 1940, North American had grown into a holding company valued at US$2.3 billion, overseeing 80 companies either directly or indirectly. It maintained controlling interests (minimum 79%) in eight out of its ten principal subsidiaries:
- Three significant holding companies:
- Four operating companies:
- Three additional entities:
- North American Utility Securities Corporation
- West Kentucky Coal Company
- 60 Broadway Building Corporation
North American also possessed substantial stakes in other utility and transit firms, including:
- The Milwaukee Electric Railway and Light Company, which merged with Wisconsin Electric Power Company in 1938; now incorporated into Wisconsin Energy Corporation
- Capital Transit, established in Washington, D.C., through the consolidation of streetcar and bus operators; owned by North American via Washington Railway and Electric Company
- Potomac Electric Power Company (Pepco)
- Cincinnati Gas & Electric Company
- Union Light, Heat and Power based in Covington, Kentucky
- Northern Natural Gas Company
- Butte Electric and Power Company (part of Montana Power)
- Laclede Gas Company, an original constituent of the Dow Jones index
- Edison Securities Corporation
- Wired Radio, Inc. (Muzak)
- North American Edison Company
- St. Louis United Railways Company
These holdings demonstrate the extensive reach of North American Company's portfolio across utility services, transportation networks, and energy production sectors, highlighting its broad operational scope and market dominance before its dissolution.
Breakup
The Public Utility Holding Company Act of 1935 sought to dismantle interstate electric holding companies by limiting their operations to a single state to facilitate regulatory oversight. North American Company opposed this legislation through court battles but was eventually disbanded by the Securities and Exchange Commission after losing their case in the Supreme Court decision North American Co. v. SEC on April 1, 1946.
See also
- John I. Beggs (previous board member)
- Clement Studebaker Jr. (chairman of North American Light and Power Company)