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Checker Motors Corporation

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Checker Motors Corporation

Checker Motors Corporation was a vehicle manufacturer, and later an automotive subcontractor, based in Kalamazoo, Michigan. The company was established by Morris Markin in 1922, created by a merger of the firms Commonwealth Motors and Markin Automobile Body, and was initially named the Checker Cab Manufacturing Company. The manufacturer was originally based in Chicago, before moving to Kalamazoo in 1923. The company was renamed Checker Motors in 1958.

Checker made the iconic American taxi cab, valued by taxicab companies for its durability in heavy use. Special features included wide rear doors, large rear seats and trunks, and jump seats for two extra passengers. In later years, the company had trouble competing with fleet discounts offered by the larger manufacturers, as well as economies of scale in procuring components. The final models were produced in 1982. After 1982, Checker invested significantly in the third party manufacturing business, serving GM and Chrysler.

On January 16, 2009, the company filed for Chapter 11 protection in U.S. Bankruptcy Court.

Commonwealth Motors in 1919, introduced the Mogul Taxi. Commonwealth could trace its history back to the DeSchaum Motor Syndicate, later renamed Suburban Limiteds, was founded in 1908 in Buffalo, New York. The Mogul combined the sturdy Commonwealth frame with a purpose-built taxicab body from Lomberg Auto Body Manufacturing Company, which was founded in the late 1910s by Russian immigrant Abraham Lomberg in Joliet, Illinois. Soon after, Lomberg looked for further capital to increase the capacity to build the expected orders for the Mogul, and took out a $15,000 personal loan from businessman, Morris Markin. Markin had emigrated from Russia in 1913 and worked as a clothier in Chicago, Illinois, earning his fortune by winning a contract to supply uniforms to the United States Army during World War I.

However, demand for the Mogul was lower than expected and Lomberg defaulted on the loan, surrendering his company to Markin in late 1920. When Markin took over he renamed the business Markin Automobile Body. Mogul sales continued to be slow, but Commonwealth was rescued temporarily from bankruptcy by a large order from Checker Taxi in late 1920. At the time, Checker Taxi was a privately owned taxi operator based in Chicago that had no affiliation with Markin. However, the order only kept Commonwealth afloat for a short while, and eventually it was unable to repay its creditors and entered it bankruptcy in late 1921. Markin offered Commonwealth's receivers Markin Automobile Body shares for the company's assets. Markin was helped by the assets of Markin Automobile Body being valued at $182,703, a figure that was greater than its actual worth, and that it was probably the only offer on the table. The offer was accepted by the receivers in October 1921, with Markin merging the two firms in May 1922 as the Checker Cab Manufacturing Company in May 1922.

Checker Cab produced the Mogul alongside Commonwealth passenger cars briefly, but soon began concentrating on commercial sales, introducing the Checker Model C on June 18, 1922, followed by a Mogul variant, the Model H, later that year. Markin is credited with devising and applying the brand's signature checkerboard trim to the vehicle's beltline. With the ongoing war between Checker Taxi and Yellow Cab, including Markin's house being bombed, Markin decided he needed to move his business away from Chicago. Checker Cab moved to Kalamazoo in 1923, taking over two factories previously operated by Dort Motor Car Company and Handley-Knight. In 1930, Checkers came in either black, maroon, yellow or canary.

Markin gradually acquired the unrelated taxicab operator Checker Taxi of Chicago over the course of the 1920s. In 1929, he purchased Checker Taxi's rival Yellow Cab Company from John D. Hertz, who had grown weary of the decade-long Chicago Taxi War between Checker and Yellow Cab. The two operators were merged into the Parmelee Transportation Company. Yellow Cab previously had used taxicabs built by a subsidiary, the Yellow Cab Manufacturing Company, but after Yellow Cab (the taxi operator) was folded into Parmelee, both companies turned to Checker Cab instead, ensuring a steady demand for its taxicabs. Yellow Cab Mfg. had been established in 1920 and following its acquisition by General Motors (GM) in 1925, was reorganized as Yellow Truck & Coach. By that time, Yellow Cab Mfg. had begun to pivot towards producing motorbuses, but continued to manufacture taxicabs. Markin would go on to acquire the principal taxicab operating companies in New York City, Pittsburgh, and Minneapolis. From 1922 to 1928, Checker Cab made and sold 8,019 taxicabs to various operators.

Markin's captive market strategy proved sound during the Great Depression; with Checker Cab sales holding steady, the company continued to return a reliable profit. Although the year-to-date profit for Checker Cab in May 1931 was just US$665, it was still a positive profit when many automobile manufacturers were struggling, prompting GM to rename the Yellow Cab company to General Cab and to re-enter the taxicab market. However, operators took advantage of GM's generous terms which did not include a repayment schedule. General Motors withdrew from the market in 1938. Checker's strategy also attracted the attention of the federal government, which later brought an antitrust suit against Checker and Markin under the Sherman Act. Although the case was initially dismissed by the United States District Court for the Northern District of Illinois, that decision was reversed by the Supreme Court of the United States in 1947 and decided in favor of the defendants in 1948, who argued successfully that Checker Cab's successes with taxicab operators were due to the marque's inherent advantages and not the complex relationships between the manufacturer and operators: because Checker Cab's vehicles were purpose-built for the taxicab industry, operators naturally would choose them over modified passenger cars. After another appeal, the Supreme Court upheld the lower court's verdict in 1949.

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