John D. Hertz
Encyclopedia
John Daniel Hertz, Sr. was an American
businessman, thoroughbred racehorse owner, and philanthropist
.
, since 1920 Vrútky
, since 1993 in Slovakia
, part of the Austro-Hungarian Empire. His family emigrated to the United States
when he was five.
As a young man, Hertz was an amateur boxer, fighting under the name "Dan Donnelly." He won amateur championships at the Chicago Athletic Association and eventually began to box under his own name and became the manager for Benny Yanger. He lived at 880 Fifth Avenue
.
Hertz's first job was selling newspapers, and eventually he became a reporter for the Chicago Morning News. When the paper, then called the Chicago Record merged with another paper, he lost his job. Although he couldn't drive, in 1904 he found a job selling cars at the suggestion of a friend. Because of the number of trade-ins, he came up with the idea of creating a cab company with low prices so the common man could afford to ride in them. In 1907, he had a fleet of seven used cars that he used as cabs.
He founded the Yellow Cab Company
in Chicago
in 1915 which offered taxicab
service at a modest price. The distinctive yellow cabs became popular in his home city and were quickly franchised throughout the United States
. He then founded the Chicago Motor Coach Company
in 1917 to operate bus transport services in Chicago and the Yellow Cab Manufacturing Company
in 1920 to manufactured taxicabs for sale. In 1923 he founded the Yellow Coach Manufacturing Company to manufacture coaches and later cars. In 1924, he acquired a rental car business, renaming it Hertz Drive-Ur-Self Corporation
.
Competition between the Yellow Cab Company
and Checker Taxi
in Chicago was fierce and frequently violent with a number of shooting and deaths.
By 1925 the Yellow Cab Company was owned by the 'Chicago Yellow Cab Company' which in turn was owned by Hertz, Parmelee and some other investors. In the same year he established The Omnibus Corporation
to control both the Chicago Motor Coach Company and the Fifth Avenue Coach Company in New York.
In 1925 Hertz held the following positions:
In 1926 he sold a majority share in Yellow Cab Manufacturing Company together with its subsidiaries, Yellow Coach Manufacturing Company and 'Hertz Drive-Ur-Self' to General Motors. Hertz became a main board director at GM at the same time.
He then sold his remaining interest in the Yellow Cab Company
in 1929 following the firebombing of his stables where 11 horses were killed.
In 1933, Robert Lehman
sold Hertz a minority interest in Lehman Brothers
investment bank in New York City
and he remained a member of the firm until his death. In 1938 Hertz was prepared to buy Eastern Air Lines
from General Motors but the airline's General Manager, Eddie Rickenbacker
, was able to raise the necessary financing to acquire Eastern before Hertz could exercise his option. In 1943 he sold his remaining financial interest in Yellow Coach Manufacturing Company to General Motors.
Using The Omnibus Corporation he re-purchased the car rental business from General Motors in 1953. The Omnibus Corporation then divested itself of its public transport interests, changed its name to The Hertz Corporation
and floated on the New York Stock Exchange
the following year.
star Myrna Loy
.
horse racing
. They owned a horse farm at Trout Valley
near Cary, Illinois
, another known as Amarillo Ranch in Woodland Hills, California in the San Fernando Valley
. However, Stoner Creek Stud
on Middletown Road near Paris, Kentucky
would become their most important breeding and training center. Among their top horses were the 1928 Kentucky Derby
winner and American Horse of the Year, Reigh Count
, who sired the legendary Count Fleet
, winner of the United States Triple Crown of Thoroughbred Racing
in 1943. Both horses were inducted in the National Museum of Racing and Hall of Fame
.
era, Hertz established the Fannie and John Hertz Foundation
with the purpose of supporting military research. Friend Edward Teller
urged Hertz to orient his foundation to fund education in the applied sciences. The Hertz Foundation fellowship program was originally administered primarily by scientists at Lawrence Livermore National Laboratory
who are associated with the military's nuclear weapons and ballistic missile
defense programs. For his significant contribution to the security of the United States, in 1958 he received the highest civilian award given by the Department of Defense
.
In 1924, Hertz fronted the city of Chicago $34,000 to install the city's first traffic light
s on Michigan Avenue
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman, thoroughbred racehorse owner, and philanthropist
Philanthropist
A philanthropist is someone who engages in philanthropy; that is, someone who donates his or her time, money, and/or reputation to charitable causes...
.
Biography
Born Sandor Herz in the town of Ruttka, Kingdom of HungaryKingdom of Hungary
The Kingdom of Hungary comprised present-day Hungary, Slovakia and Croatia , Transylvania , Carpatho Ruthenia , Vojvodina , Burgenland , and other smaller territories surrounding present-day Hungary's borders...
, since 1920 Vrútky
Vrútky
Vrútky ; ) is a town in northern Slovakia, close to the city of Martin. It lies in the historic Turiec region.-Geography:The town lies at the confluence of the Váh and the Turiec, in the Turčianska kotlina, near the Malá Fatra mountain range. It is located north of the city of Martin, with which...
, since 1993 in Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
, part of the Austro-Hungarian Empire. His family emigrated to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
when he was five.
As a young man, Hertz was an amateur boxer, fighting under the name "Dan Donnelly." He won amateur championships at the Chicago Athletic Association and eventually began to box under his own name and became the manager for Benny Yanger. He lived at 880 Fifth Avenue
880 Fifth Avenue
880 Fifth Avenue is a luxury apartment building on Fifth Avenue at the northeast corner of 69th Street in New York City.It was the final building by architect Emery Roth. The developers were Harold Uris and Percy Uris...
.
Business career
Hertz had extensive and complex business interests, mainly in the transport sector.Hertz's first job was selling newspapers, and eventually he became a reporter for the Chicago Morning News. When the paper, then called the Chicago Record merged with another paper, he lost his job. Although he couldn't drive, in 1904 he found a job selling cars at the suggestion of a friend. Because of the number of trade-ins, he came up with the idea of creating a cab company with low prices so the common man could afford to ride in them. In 1907, he had a fleet of seven used cars that he used as cabs.
He founded the Yellow Cab Company
Yellow Cab Company
The Yellow Cab Company is a taxicab company in Chicago which was founded in 1914 by John D. Hertz.-History:The Yellow Cab Company was founded in Chicago in 1914 by John D...
in Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
in 1915 which offered taxicab
Taxicab
A taxicab, also taxi or cab, is a type of vehicle for hire with a driver, used by a single passenger or small group of passengers, often for a non-shared ride. A taxicab conveys passengers between locations of their choice...
service at a modest price. The distinctive yellow cabs became popular in his home city and were quickly franchised throughout the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. He then founded the Chicago Motor Coach Company
Chicago Motor Coach Company
The Chicago Motor Coach Company was founded in 1917 by John D. Hertz to provide Chicago's first bus transportation services, primarily in places where streetcars were not able to travel. The company grew rapidly and was purchased by the Chicago Transit Authority in 1952.-History:John D. Hertz...
in 1917 to operate bus transport services in Chicago and the Yellow Cab Manufacturing Company
Yellow Cab Manufacturing Company
The Yellow Cab Manufacturing Company was established in 1920 by John D. Hertz and was associated with the Yellow Cab Company which Hertz also owned.-History:The Yellow Cab Manufacturing Company was established in 1920 by John D...
in 1920 to manufactured taxicabs for sale. In 1923 he founded the Yellow Coach Manufacturing Company to manufacture coaches and later cars. In 1924, he acquired a rental car business, renaming it Hertz Drive-Ur-Self Corporation
The Hertz Corporation
Hertz Global Holdings Inc is an American car rental company with international locations in 145 countries worldwide.-Early years:The company was founded by Walter L. Jacobs in 1918, who started a car rental operation in Chicago with a dozen Model T Ford cars. In 1923, Jacobs sold it to John D...
.
Competition between the Yellow Cab Company
Yellow Cab Company
The Yellow Cab Company is a taxicab company in Chicago which was founded in 1914 by John D. Hertz.-History:The Yellow Cab Company was founded in Chicago in 1914 by John D...
and Checker Taxi
Checker Taxi
Checker Taxi was an American taxi company. It used the Checker Taxi Cab produced by the Checker Motors Corporation of Kalamazoo, Michigan. Both Checker Taxi and its parent company Checker Motors Corporation were owned by Morris Markin....
in Chicago was fierce and frequently violent with a number of shooting and deaths.
By 1925 the Yellow Cab Company was owned by the 'Chicago Yellow Cab Company' which in turn was owned by Hertz, Parmelee and some other investors. In the same year he established The Omnibus Corporation
The Omnibus Corporation
The Omnibus Corporation was formed in 1925 and acquired control of Fifth Avenue Coach Company and the Chicago Motor Coach Company with John D. Hertz as chairman. In 1953 it purchased Yellow Drive-It-Yourself from General Motors and sold its interests in public transport...
to control both the Chicago Motor Coach Company and the Fifth Avenue Coach Company in New York.
In 1925 Hertz held the following positions:
- President of the Yellow Cab CompanyYellow Cab CompanyThe Yellow Cab Company is a taxicab company in Chicago which was founded in 1914 by John D. Hertz.-History:The Yellow Cab Company was founded in Chicago in 1914 by John D...
- Chairman Benzoline Motor Fuel Company
- Chairman Chicago Motor Coach CompanyChicago Motor Coach CompanyThe Chicago Motor Coach Company was founded in 1917 by John D. Hertz to provide Chicago's first bus transportation services, primarily in places where streetcars were not able to travel. The company grew rapidly and was purchased by the Chicago Transit Authority in 1952.-History:John D. Hertz...
- Chairman Fifth Avenue Coach Company
- Chairman New York Transportation CompanyNew York Transportation CompanyThe New York Transportation Company was a company incorporated in New Jersey in 1899 as the 'New York Electrical Vehicle Transportation Company' which changed its name to the 'New York Transportation Company' in 1902 and was wound up in 1936...
- Chairman Omnibus Corporation of America
- Chairman Yellow Coach Manufacturing Company
- Chairman Yellow Sleeve-Valve Engine Works
- Chairman Yellow Truck and Coach Manufacturing Company
In 1926 he sold a majority share in Yellow Cab Manufacturing Company together with its subsidiaries, Yellow Coach Manufacturing Company and 'Hertz Drive-Ur-Self' to General Motors. Hertz became a main board director at GM at the same time.
He then sold his remaining interest in the Yellow Cab Company
Yellow Cab Company
The Yellow Cab Company is a taxicab company in Chicago which was founded in 1914 by John D. Hertz.-History:The Yellow Cab Company was founded in Chicago in 1914 by John D...
in 1929 following the firebombing of his stables where 11 horses were killed.
In 1933, Robert Lehman
Robert Lehman
Robert Lehman was an American banker, head of Lehman Brothers for decades and a notable race-horse owner, and important art-collector and philanthropist.-Biography:...
sold Hertz a minority interest in Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
investment bank in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and he remained a member of the firm until his death. In 1938 Hertz was prepared to buy Eastern Air Lines
Eastern Air Lines
Eastern Air Lines was a major United States airline that existed from 1926 to 1991. Before its dissolution it was headquartered at Miami International Airport in unincorporated Miami-Dade County, Florida.-History:...
from General Motors but the airline's General Manager, Eddie Rickenbacker
Eddie Rickenbacker
Edward Vernon Rickenbacker was an American fighter ace in World War I and Medal of Honor recipient. He was also a race car driver and automotive designer, a government consultant in military matters and a pioneer in air transportation, particularly as the longtime head of Eastern Air Lines.-Early...
, was able to raise the necessary financing to acquire Eastern before Hertz could exercise his option. In 1943 he sold his remaining financial interest in Yellow Coach Manufacturing Company to General Motors.
Using The Omnibus Corporation he re-purchased the car rental business from General Motors in 1953. The Omnibus Corporation then divested itself of its public transport interests, changed its name to The Hertz Corporation
The Hertz Corporation
Hertz Global Holdings Inc is an American car rental company with international locations in 145 countries worldwide.-Early years:The company was founded by Walter L. Jacobs in 1918, who started a car rental operation in Chicago with a dozen Model T Ford cars. In 1923, Jacobs sold it to John D...
and floated on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
the following year.
Personal life
In 1903 he married Francis (Fannie) Kesner of Chicago with whom he had three children: Leona Jane, John Jr., and Helen. John Jr. became an advertising executive and was briefly married between 1942 and 1944 to filmFilm
A film, also called a movie or motion picture, is a series of still or moving images. It is produced by recording photographic images with cameras, or by creating images using animation techniques or visual effects...
star Myrna Loy
Myrna Loy
Myrna Loy was an American actress. Trained as a dancer, she devoted herself fully to an acting career following a few minor roles in silent films. Originally typecast in exotic roles, often as a vamp or a woman of Asian descent, her career prospects improved following her portrayal of Nora Charles...
.
Thoroughbred horse racing
John and Fannie Hertz were major figures in ThoroughbredThoroughbred
The Thoroughbred is a horse breed best known for its use in horse racing. Although the word thoroughbred is sometimes used to refer to any breed of purebred horse, it technically refers only to the Thoroughbred breed...
horse racing
Horse racing
Horse racing is an equestrian sport that has a long history. Archaeological records indicate that horse racing occurred in ancient Babylon, Syria, and Egypt. Both chariot and mounted horse racing were events in the ancient Greek Olympics by 648 BC...
. They owned a horse farm at Trout Valley
Trout Valley, Illinois
Trout Valley is a village in McHenry County, Illinois, United States. It was incorporated as a village on 19 March 1996. The population was 599 at the 2000 census.-Geography:Trout Valley is located at ....
near Cary, Illinois
Cary, Illinois
Cary is a village located in Algonquin Township, McHenry County, Illinois, United States. The population was 15,531 at the 2000 census. A 2003 special census put the village's population at 17,827.-Geography:Cary is located at ....
, another known as Amarillo Ranch in Woodland Hills, California in the San Fernando Valley
San Fernando Valley
The San Fernando Valley is an urbanized valley located in the Los Angeles metropolitan area of southern California, United States, defined by the dramatic mountains of the Transverse Ranges circling it...
. However, Stoner Creek Stud
Stoner Creek Stud
Stoner Creek Stud was an American Thoroughbred horse breeding farm near Paris, Kentucky owned by Chicago businessman John D. Hertz and his wife, Fannie Kesner Hertz .In his early business years in Chicago, John Hertz owned a farm near Cary, Illinois...
on Middletown Road near Paris, Kentucky
Paris, Kentucky
As of the census of 2000, there were 9,183 people, 3,857 households, and 2,487 families residing in the city. The population density was . There were 4,222 housing units at an average density of . The racial makeup of the city was 84.23% White, 12.71% African American, 0.16% Native American, 0.16%...
would become their most important breeding and training center. Among their top horses were the 1928 Kentucky Derby
Kentucky Derby
The Kentucky Derby is a Grade I stakes race for three-year-old Thoroughbred horses, held annually in Louisville, Kentucky, United States on the first Saturday in May, capping the two-week-long Kentucky Derby Festival. The race is one and a quarter mile at Churchill Downs. Colts and geldings carry...
winner and American Horse of the Year, Reigh Count
Reigh Count
Reigh Count was an American Hall of Fame Thoroughbred racehorse who won the 1928 Kentucky Derby and the 1929 Coronation Cup in England....
, who sired the legendary Count Fleet
Count Fleet
Count Fleet was born and died at Stoner Creek Stud farm in Paris, Kentucky, United States. He was a Thoroughbred racehorse and Triple Crown champion in 1943....
, winner of the United States Triple Crown of Thoroughbred Racing
United States Triple Crown of Thoroughbred Racing
In the United States, the "Triple Crown" is usually the Triple Crown of Thoroughbred Racing, a series of three Thoroughbred horse races for three-year-old horses run in May and early June of each year consisting of the Kentucky Derby, Preakness Stakes, and Belmont Stakes.While Daily Racing Form...
in 1943. Both horses were inducted in the National Museum of Racing and Hall of Fame
National Museum of Racing and Hall of Fame
The National Museum of Racing and Hall of Fame was founded in 1950 in Saratoga Springs, New York, to honor the achievements of American thoroughbred race horses, jockeys, and trainers...
.
Philanthropy
During the Cold WarCold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...
era, Hertz established the Fannie and John Hertz Foundation
Hertz Foundation
The Fannie and John Hertz Foundation is an American non-profit organization that awards fellowships to Ph.D. students in the applied physical, biological and engineering sciences. It is considered to be the most competitive and prestigious graduate fellowship in science and engineering. The...
with the purpose of supporting military research. Friend Edward Teller
Edward Teller
Edward Teller was a Hungarian-American theoretical physicist, known colloquially as "the father of the hydrogen bomb," even though he did not care for the title. Teller made numerous contributions to nuclear and molecular physics, spectroscopy , and surface physics...
urged Hertz to orient his foundation to fund education in the applied sciences. The Hertz Foundation fellowship program was originally administered primarily by scientists at Lawrence Livermore National Laboratory
Lawrence Livermore National Laboratory
The Lawrence Livermore National Laboratory , just outside Livermore, California, is a Federally Funded Research and Development Center founded by the University of California in 1952...
who are associated with the military's nuclear weapons and ballistic missile
Ballistic missile
A ballistic missile is a missile that follows a sub-orbital ballistic flightpath with the objective of delivering one or more warheads to a predetermined target. The missile is only guided during the relatively brief initial powered phase of flight and its course is subsequently governed by the...
defense programs. For his significant contribution to the security of the United States, in 1958 he received the highest civilian award given by the Department of Defense
United States Department of Defense
The United States Department of Defense is the U.S...
.
In 1924, Hertz fronted the city of Chicago $34,000 to install the city's first traffic light
Traffic light
Traffic lights, which may also be known as stoplights, traffic lamps, traffic signals, signal lights, robots or semaphore, are signalling devices positioned at road intersections, pedestrian crossings and other locations to control competing flows of traffic...
s on Michigan Avenue
Michigan Avenue (Chicago)
Michigan Avenue is a major north-south street in Chicago which runs at 100 east south of the Chicago River and at 132 East north of the river from 12628 south to 950 north in the Chicago street address system...
.