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American Bicycle was founded by Albert Augustus Pope, owner of Columbia Bicycle. In 1898, the U.S. bicycle industry was caught in a downward spiral of market saturation, over-supply and intense price competition. Pope issued an affidavit stating that the American Bicycle Company was incorporated on May 12, 1899. In an attempt to control supply and limit competition, 42 manufacturers (later over 75 companies) formed the American Bicycle Company and soon afterwards announced plans to open a branch plant in Canada called the National Cycle Company.