The Rose City Transit Company (RCT, or RCTC) was a private company that operated most mass transit service in the city of Portland, Oregon, from 1956 to 1969. It operated only within the city proper. Transit services connecting downtown Portland with suburbs outside the city but within the Portland metropolitan area were run by other private companies, mainly a consortium of four companies known collectively as the "Blue Bus" lines.
Rose City Transit was a wholly owned subsidiary of the Portland Traction Company (PTC), which was also its predecessor. Prior to the formation of RCT, most transit service in the city had been provided directly by Portland Traction under that name since the 1930s. After PTC's bus routes were transferred to Rose City Transit in 1956, PTC continued to run two interurban trolley lines (to Oregon City and Bellrose) under its own name, but those two lines – the only trolley car lines remaining in operation in Portland after abandonment of the last city streetcar lines in 1950 – were the only transit routes still operated directly by PTC, which otherwise was a freight railroad. Although RCT was a private company, it operated under a franchise agreement with the city of Portland, through which the city had some oversight control. Any fare increases or major service changes had to be approved by the city council.
Many transit systems in the United States were changing from private to public control in the 1950s, as growth in private-car ownership and other factors made operating mass transit service increasingly unprofitable. By 1962, all but two major West Coast cities had made the change and begun subsidizing transit, and one of those two exceptions was Portland, served by the Rose City Transit Company (with San Diego being the other). By 1967, RCT was the last remaining privately owned big-city transit system on the West Coast, after San Diego Transit became municipalized. Rose City Transit's annual ridership declined from 32.3 million in 1956 to 15.7 million in 1968.
Effective December 1, 1969, a newly formed public authority, Tri-Met, replaced Rose City Transit, taking over all operation and facilities, and using the same personnel, under an agreement reached between RCT, the city council and Tri-Met.
Formation
The Portland Traction Company's 20-year franchise to operate the city's transit system, approved by city voters in 1936, expired on February 10, 1956. In October 1955, the city council refused to renew the franchise, citing dissatisfaction with the company's practices, quality of service and out-of-state corporate control. Since 1946, PTC had been owned by a San Francisco-based holding company called Portland Transit Company, which in turn was controlled by a company called Pacific Associates. In January 1956, PTC owner Portland Transit formed a new subsidiary, Rose City Transit Company, which it hoped would gain city council approval to take over all Portland city transit lines. The only lines serving areas outside the city, the two interurban rail lines to Oregon City and Bellrose (also spelled Bell Rose), would remain with PTC. The council approved this arrangement on a trial basis, and Rose City Transit began operating the city's transit system on February 10, 1956. It used the same vehicles, employees and maintenance facilities previously used by PTC, which technically was its owner, making the transition relatively simple. The new company was initially given only a 60-day revocable franchise by the city, which was later extended by 30 days, while details of a long-term agreement were still being worked out. Both sides wanted changes before agreeing on a long-term franchise; for its part, RCT wanted more freedom to make changes without being required to obtain council approval. At one point when differences between the city council and RCT were great, one city commissioner (council member) proposed putting the idea of municipal ownership of the transit system to a vote by the public if an agreement could not be reached. However, differences were eventually worked out, and RCT was given a two-year franchise, and later a 10-year one, the latter taking effect on January 1, 1963.
Portland Transit, the California holding company, created a separate subsidiary named Landport Company, Inc., to own RCT's vehicles, facilities and properties. Landport leased them to RCT. RCT's first president was Gordon Steele, who had been president of PTC for many years prior; he retired in August 1956.