Yellow | 99 Years Ago Today.......

[Kennesaw Kid]

99 years ago today, December 31, 1924, A.J. & Cleve Harrell registered the name Yellow Cab Transit Company.

The top photo is the first Yellow Transit Company terminal that was located near the intersection of S. Santa Fe and California in downtown Oklahoma City.

The bottom photo is that of the first two Yellow Cab Transit Company trucks to carry freight exclusively. Two 1926 White Trucks that remained part of the fleet until the mid 40s.

 

[Real Teamster]

99 years ago today, December 31, 1924, A.J. & Cleve Harrell registered the name Yellow Cab Transit Company.

The top photo is the first Yellow Transit Company terminal that was located near the intersection of S. Santa Fe and California in downtown Oklahoma City.

The bottom photo is that of the first two Yellow Cab Transit Company trucks to carry freight exclusively. Two 1926 White Trucks that remained part of the fleet until the mid 40s.

We are dabbing our eyes now, KK.

 

[Freightmaster1]

NO WE CAN'T!

 

[Kennesaw Kid]

Those that do not learn from history, are doomed to repeat it....
Many of us got this book in 1999 for the 75th Anniversary of Yellow Freight. Ironically, now most of us are retired and take the time to read all the history and story, it's ironic that Yellow's road to BK in 1952 was started in 1946, AND was the same thing that went wrong in 2023, other than the Powell Family made a bid to take over the company and bring it back and Next Century Logistics offer to do the same was turned down.

 

[wongway]

Sad how bad management and bad debt management can bankrupt a company after 99 years and that the guys that caused it don't even get prison time and walk away with the $$$$$$$$$$$$$$$

 

[Cab Lizzard]

NO WE CAN'T!

NO WE CAN'T!

Yes we can get to two million miles and thats what I was given right off the Western VPs desk.

 

[BIG R GUY]

Sad how bad management and bad debt management can bankrupt a company after 99 years and that the guys that caused it don't even get prison time and walk away with the $$$$$$$$$$$$$$$

The sad thing also is, every CEO, from Zollars, to Hawkins, that the BOD made CEO of this company, was not experienced nor had the business sense to run it. Too bad there are not laws making company board of directors liable for hiring people to run companies who are deemed not capable of doing so.

 

[Razorblade]

Sad how bad management and bad debt management can bankrupt a company after 99 years and that the guys that caused it don't even get prison time and walk away with the $$$$$$$$$$$$$$$

Are you sure? Debt did not seem to be a problem until 2009 when the first round of concessionary contracts were ratified by the Teamster employees. Do you remember 2007-2009? Banks failed and the economy collapsed. It was called the great recession. Yellow never fully recovered and then came Covid. Without those events, it's very possible that the consolidation plan would have worked and Zollars would be called a genius. Buyouts and mergers are always a gamble. The ABF/Carolina merger nearly killed both companies.
Consolidation is an ongoing process in every industry. LTL freight is no different. Those companies that cannot compete will be gone. Shippers will determine which ones survive. Customers prefer one truck a day not several bumping their docks. Load all the outbound at one time on one truck. It's more cost effective for both carrier and shipper. The catch is that one single carrier must be better, faster and cheaper.

 

[useless]

NO WE CAN'T!

NOT ANYMORE

 

[BIG R GUY]

Are you sure? Debt did not seem to be a problem until 2009 when the first round of concessionary contracts were ratified by the Teamster employees. Do you remember 2007-2009? Banks failed and the economy collapsed. It was called the great recession. Yellow never fully recovered and then came Covid. Without those events, it's very possible that the consolidation plan would have worked and Zollars would be called a genius. Buyouts and mergers are always a gamble. The ABF/Carolina merger nearly killed both companies.
Consolidation is an ongoing process in every industry. LTL freight is no different. Those companies that cannot compete will be gone. Shippers will determine which ones survive. Customers prefer one truck a day not several bumping their docks. Load all the outbound at one time on one truck. It's more cost effective for both carrier and shipper. The catch is that one single carrier must be better, faster and cheaper.

I remember watching Zollars on one of his many appearances on nightly business programs, acknowledging, the economy was, softening, during 07-08, and nothing was attempted by him to cut costs or consolidate until the walls were caving in. A good CEO would have seen things slowing down earlier, and took steps to control costs. Zollars lacked that knowledge.

 

[Razorblade]

The sad thing also is, every CEO, from Zollars, to Hawkins, that the BOD made CEO of this company, was not experienced nor had the business sense to run it. Too bad there are not laws making company board of directors liable for hiring people to run companies who are deemed not capable of doing so.

Why not just have laws that limit what companies are allowed to operate in which areas? Then allow government to set the rates based on keeping the most inefficient companies profitable. There would be no need to hire qualified managers and no need to worry about out of control labor costs. Unions could demand ridiculous work rules that require far more manpower than necessary and outrageous benefit costs. The union could collect more monthly dues. Wait, laws could require every employee to pay those dues. Unions could run the health insurance and pension funds too so there would be no chance of corruption or embezzlement. Everybody wins! Except for the consumer, who pays for all of it.

 

[Razorblade]

I remember watching Zollars on one of his many appearances on nightly business programs, acknowledging, the economy was, softening, during 07-08, and nothing was attempted by him to cut costs or consolidate until the walls were caving in. A good CEO would have seen things slowing down earlier, and took steps to control costs. Zollars lacked that knowledge.

Would it have been possible to get concessions in 2007 when Yellow was still profitable? LTL freight companies have no product to sell. No manufacturing costs. No control over any costs except labor. Cost cutting has to mean reducing the cost of labor. Yes, Yellow and Roadway should have been merged immediately. They were not because of the massive costs of combining the two largest carriers. If it was too expensive in 2003, it certainly was too expensive in the slowing economy of 2007. Do not forget that CF had shut down in 2002 and it was obvious that neither Yellow nor Roadway could survive alone.

 

[BIG R GUY]

Why not just have laws that limit what companies are allowed to operate in which areas? Then allow government to set the rates based on keeping the most inefficient companies profitable. There would be no need to hire qualified managers and no need to worry about out of control labor costs. Unions could demand ridiculous work rules that require far more manpower than necessary and outrageous benefit costs. The union could collect more monthly dues. Wait, laws could require every employee to pay those dues. Unions could run the health insurance and pension funds too so there would be no chance of corruption or embezzlement. Everybody wins! Except for the consumer, who pays for all of it.

Thanks for stopping by, Slave.

 

[crazysandy]

Would it have been possible to get concessions in 2007 when Yellow was still profitable? LTL freight companies have no product to sell. No manufacturing cost

How bout no employees ever get conned again into wage concessions. Yes It did keep people working longer but tell me did it save Yellow. No.

 

[Real Teamster]

Would it have been possible to get concessions in 2007 when Yellow was still profitable? LTL freight companies have no product to sell. No manufacturing costs. No control over any costs except labor. Cost cutting has to mean reducing the cost of labor. Yes, Yellow and Roadway should have been merged immediately. They were not because of the massive costs of combining the two largest carriers. If it was too expensive in 2003, it certainly was too expensive in the slowing economy of 2007. Do not forget that CF had shut down in 2002 and it was obvious that neither Yellow nor Roadway could survive alone.

I beliebe you're right about much of this. Yellow and Roadway should have been merged in 2004. The whole idea of having the number one and number two player in the industry competing with each other while under common ownership is ridiculous.

 

[ABF381]

Would it have been possible to get concessions in 2007 when Yellow was still profitable? LTL freight companies have no product to sell. No manufacturing costs. No control over any costs except labor. Cost cutting has to mean reducing the cost of labor. Yes, Yellow and Roadway should have been merged immediately. They were not because of the massive costs of combining the two largest carriers. If it was too expensive in 2003, it certainly was too expensive in the slowing economy of 2007. Do not forget that CF had shut down in 2002 and it was obvious that neither Yellow nor Roadway could survive alone.

I can see some of what you are saying but I have 2 things to add..
1. If it was too expensive to make a merger happen immediately then Yellow shouldn't have bought Roadway.
2. It wasn't obvious they wouldn't survive. Roadway had little debt and Yellow would have had far less. It isn't inconceivable that they would both be here if not for the merger..

 

[Triplex]

How bout no employees ever get conned again into wage concessions. Yes It did keep people working longer but tell me did it save Yellow. No.

In spite of what you may have been brainwashed into believing, no one was conned. And Yellow continuing in business for many years still provided decent incomes to over 30,000 employees there. Sounds like they benefitted.

 

[Razorblade]

I can see some of what you are saying but I have 2 things to add..
1. If it was too expensive to make a merger happen immediately then Yellow shouldn't have bought Roadway.
2. It wasn't obvious they wouldn't survive. Roadway had little debt and Yellow would have had far less. It isn't inconceivable that they would both be here if not for the merger..

Good points. Neither of us will ever know for sure.

 

[crazysandy]

In spite of what you may have been brainwashed into believing, no one was conned. And Yellow continuing in business for many years still provided decent incomes to over 30,000 employees there. Sounds like they benefitted.

Well you believe what you want to believe. Onward and upward 2024. We will never agree on this subject.

 

[Triplex]

Well you believe what you want to believe. Onward and upward 2024. We will never agree on this subject.

What's not true, that Yellow still provided decent jobs for over 30,000 people? Or are you insinuating that the Yellow employees were too stupid to not know they were being "conned" as you proclaimed? Get real.