North American Company
Defunct American holding company that controlled major utility, electric power, gas, street railway, and transit businesses.
Last updated August 26, 2026
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Overview
North American Company was an American holding company incorporated in New Jersey on June 14, 1890, under the control of Henry Villard. It was created to succeed to the assets and property of the Oregon and Transcontinental Company after New Jersey adopted legislation designed to make the state attractive to corporate holding companies and industrial trusts. Rather than operating as a single consumer-facing business, North American Company served as a corporate structure through which interests in public utilities, electric companies, gas companies, street railways, electric railways, and related enterprises could be owned and managed. The company became one of the most significant utility holding organizations in the United States during the late nineteenth and early twentieth centuries. Its portfolio included both direct operating companies and intermediate holding companies. Among its important interests were Union Electric Company of St. Louis, Washington Railway and Electric Company, North American Light and Power Company, Cleveland Electric Illuminating Company, Pacific Gas and Electric, Detroit Edison Company, Wisconsin Electric Power Company, North American Utility Securities Corporation, West Kentucky Coal Company, and 60 Broadway Building Corporation. At different points it also held substantial interests in companies including Potomac Electric Power Company, Cincinnati Gas & Electric Company, Northern Natural Gas Company, Laclede Gas Company, Butte Electric and Power Company, Capital Transit, Milwaukee Electric Railway and Light Company, St. Louis United Railways Company, and Wired Radio, later associated with Muzak. North American's structure reflected the era's preference for large, geographically dispersed utility systems financed and coordinated through holding companies. By 1940, the organization was reported to have a value of approximately $2.3 billion and to control, directly or indirectly, about 80 companies. It had ten major direct subsidiaries, including three principal holding companies and four major operating companies. This structure gave it considerable influence over electricity distribution, gas supply, urban transit, and related infrastructure in several parts of the country. The company also had a prominent place in the history of American securities markets. North American Company was one of the twelve stocks included when the Dow Jones Industrial Average was introduced on May 26, 1896. It was removed later that year, returned to the expanded thirty-stock average in October 1928, and was removed again in 1930. These inclusions reflected its status as a large and widely recognized corporation, although they did not make it a modern operating brand in the consumer sense. Its corporate model came under increasing regulatory pressure after passage of the Public Utility Holding Company Act of 1935. The act sought to dismantle interstate electric holding structures and limit utility holding companies largely to operations that could be regulated effectively within a single state. North American Company challenged the legislation and resisted the Securities and Exchange Commission's effort to apply it to the group. The dispute reached the United States Supreme Court in North American Co. v. SEC. After the company lost before the Court on April 1, 1946, the SEC proceeded with the breakup of the organization. North American Company was therefore dismantled in 1946, largely as a consequence of federal utility regulation. Its former subsidiaries and investments went on to separate corporate histories, with some later becoming associated with successor utility groups.
History
North American Company was incorporated in New Jersey on June 14, 1890, during a period when New Jersey was revising its corporate law to attract trusts and encourage corporations to reorganize as holding companies. Henry Villard controlled the new company, which succeeded to the assets and property of the Oregon and Transcontinental Company. The arrangement allowed ownership of multiple businesses through a centralized corporate entity and reflected the rapid growth of large-scale infrastructure finance in the United States. During the following decades, North American Company developed a broad portfolio of public utility and transportation investments. Its interests included electricity generation and distribution, gas companies, street railways, electric railways, urban transit, utility securities, coal, and related real estate. The organization operated through a network of direct subsidiaries and intermediate holding companies. Major direct interests included Union Electric Company of St. Louis, Washington Railway and Electric Company, North American Light and Power Company, Cleveland Electric Illuminating Company, Pacific Gas and Electric, Detroit Edison Company, and Wisconsin Electric Power Company. The Milwaukee Electric Railway and Light Company was formed as a North American subsidiary in 1896. By 1929, its operations were combined within the North American organization with Wisconsin Electric Power Company; in 1938, the consolidated operating name became Wisconsin Electric Power Company. North American also held a major interest in Capital Transit, created in Washington, D.C., in 1933 through the merger of several railway and bus operations. The company owned Capital Transit indirectly through Washington Railway and Electric Company, which held half of the merged transit enterprise. North American Company became a major presence in the American utility sector. In 1940, it was described as a holding company worth approximately $2.3 billion that directly or indirectly controlled about 80 companies. Ten major direct subsidiaries formed the core of the group: three holding companies, four operating companies, and three other corporate entities. The size and geographic reach of the structure made North American representative of the interstate utility systems that federal regulators increasingly viewed as difficult for individual states to supervise. The corporation's market status was reflected in its inclusion in the Dow Jones Industrial Average. It was one of the original twelve components when the average was created in May 1896, although it was replaced in August of that year. It returned when the average expanded to thirty stocks in October 1928, then left the index again in 1930. The Public Utility Holding Company Act of 1935 marked the decisive turning point. The law sought to reduce the complexity and interstate reach of electric holding companies by requiring them to conform more closely to state-based regulation and by limiting their ability to control unrelated utility systems. North American Company challenged the legislation and resisted the SEC's restructuring efforts. The case reached the Supreme Court, which ruled against the company on April 1, 1946, in North American Co. v. SEC. Following that decision, the SEC ordered the company's breakup. By 1946, North American Company had ceased to function as the integrated holding organization that had dominated its portfolio for much of the preceding half-century.
- 1946
Supreme Court ruling precedes corporate breakup
[1]After losing North American Co. v. SEC on April 1, 1946, the company was broken up by the Securities and Exchange Commission.
- 1940
Controls an extensive national utility network
[1]North American was described as a roughly $2.3 billion holding company with direct or indirect control of about 80 companies.
- 1935
Public Utility Holding Company Act is enacted
[1]Federal legislation targeted interstate electric holding companies and sought to place utility systems under more effective state regulation.
- 1933
Capital Transit is formed
[1]Capital Transit was created in Washington, D.C., through the merger of the Washington Railway and Electric Company, Capital Traction, and Washington Rapid Transit. North American held the interest through its Washington Railway and Electric subsidiary.
- 1930
Leaves the Dow average again
[1]North American was replaced by Johns-Manville in the Dow Jones Industrial Average.
- 1928
Returns to the expanded Dow average
[1]The company was added back to the Dow Jones Industrial Average when the index expanded to thirty stocks.
- 1896
Milwaukee Electric Railway and Light becomes a North American subsidiary
[1]North American formed the Milwaukee Electric Railway and Light Company as a subsidiary, expanding its involvement in electric railway infrastructure.
- 1896
Joins the original Dow Jones Industrial Average
[1]North American was one of the twelve stocks in the initial Dow Jones Industrial Average, launched on May 26, 1896.
- 1890
North American Company is incorporated
[1]The company was incorporated in New Jersey on June 14, 1890, under Henry Villard's control to succeed to the assets of Oregon and Transcontinental.
- 1889
New Jersey expands holding-company opportunities
[1]New Jersey legislation helped make the state a favorable jurisdiction for trusts and corporations seeking to reorganize as holding companies.
Products and positioning
A large, diversified American utility and transportation holding company rather than a consumer product brand. Its business model centered on controlling regional infrastructure companies through direct ownership and layered holding-company structures.
Electric utilities
Electric utility holdings
North American Company controlled or held major interests in electric utility businesses, including Cleveland Electric Illuminating Company, Pacific Gas and Electric, Detroit Edison Company, Wisconsin Electric Power Company, and Union Electric Company of St. Louis. These investments formed the central operating base of the holding-company group.
Rail and urban transit
Railway and transit holdings
The company owned interests in street railway, electric railway, and urban transit businesses. Its portfolio included Milwaukee Electric Railway and Light Company, Washington Railway and Electric Company, St. Louis United Railways Company, and an indirect stake in Washington, D.C.'s Capital Transit.
Gas utilities
Gas and related utility holdings
North American's wider portfolio included gas and energy-related companies such as Cincinnati Gas & Electric Company, Union Light, Heat and Power of Covington, Kentucky, Northern Natural Gas Company, and Laclede Gas Company.
Financial and corporate assets
Utility securities and related assets
Beyond operating utilities and transit systems, the group included North American Utility Securities Corporation, West Kentucky Coal Company, Edison Securities Corporation, Wired Radio, Inc., North American Edison Company, and the 60 Broadway Building Corporation.
Brand decisions
1946
Break up the integrated holding-company groupOtherBackground
Following the Supreme Court's decision in North American Co. v. SEC on April 1, 1946, the company's interstate holding structure could no longer continue in its prior form.
Action taken
The Securities and Exchange Commission dismantled North American Company and separated its utility and related holdings.
Aftermath
The parent organization ceased to operate as an integrated holding company, while former subsidiaries continued under separate corporate ownership and successor organizations.
1935
Challenge the Public Utility Holding Company ActStrategyBackground
Federal regulators sought to restrict interstate utility holding companies and make their operations subject to effective state regulation.
Action taken
North American Company contested the legislation and the SEC's efforts to apply its restructuring requirements to the company.
Aftermath
The dispute reached the Supreme Court, which ruled against North American Company in 1946.
1890
Reorganize as a New Jersey holding companyStrategyBackground
New Jersey's corporate-law changes encouraged trusts and other large enterprises to use holding-company structures. The Oregon and Transcontinental organization used this environment to reorganize under the North American Company name.
Action taken
North American Company was incorporated in New Jersey to succeed to the assets and property of Oregon and Transcontinental and to hold interests in multiple operating businesses.
Aftermath
The structure became the foundation for a large, diversified utility and transportation portfolio.
Recent events
- 1946
Supreme Court ruling clears path for breakup of North American Company[1]
Regulation · Lawsuit · Other
On April 1, 1946, the United States Supreme Court ruled against North American Company in North American Co. v. SEC. The Securities and Exchange Commission subsequently broke up the holding company.
- 1935
North American Company faces federal utility-holding-company regulation[1]
Regulation · Lawsuit
The Public Utility Holding Company Act established limits intended to dismantle interstate electric holding structures and subject utility operations to more effective state regulation.
- 1930
North American Company is removed from the Dow Jones Industrial Average[1]
Other
North American Company was removed from the Dow Jones Industrial Average and replaced by Johns-Manville.
- 1928
North American Company returns to the expanded Dow Jones Industrial Average[1]
Other
When the Dow Jones Industrial Average expanded from twelve to thirty components on October 1, 1928, North American Company was added again.
- 1896
North American Company enters the Dow Jones Industrial Average[1]
Other
North American Company was included among the twelve stocks used to establish the Dow Jones Industrial Average on May 26, 1896. It was replaced later that year by U.S. Cordage.
Sources1 sources
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