The North American Company (historical holding company): A Story of Power and Breakup

The North American Company, active from 1890 to 1946, was a giant in the world of public utilities and transportation. Its story is one of ambition, consolidation, and ultimately, forced dissolution. Here's a closer look:

Origins and Growth (1890-1920s):

• Founded by financier Henry Villard, it acquired struggling railroad and utility companies, building an empire across the US.
• By the 1920s, it controlled numerous electric power, streetcar, and gas companies, serving millions of customers.
• It gained national prominence, even joining the Dow Jones Industrial Average from 1928-1930.

Challenges and Regulation (1930s-1940s):

• The Great Depression strained its finances, and concerns grew about its vast concentration of power.
• The Public Utility Holding Company Act of 1935 aimed to curb such monopolies, forcing the North American Company to restructure.
• Protracted legal battles and negotiations ensued, ultimately leading to its breakup in 1946.

Legacy:

• While the company itself is no more, its influence remains.
• Its former subsidiaries, like Pacific Gas and Electric and Cleveland Electric Illuminating Company, still operate today.
• The North American Company serves as a historical example of the rise and fall of powerful holding companies and the impact of government regulation.