Bus Riders Union of Austin, Texas | El Sindicato de Pasajeros

This system was acquired by Dr. J. J. Tobin and his brother, Dr. W. H. Tobin, who operated it until it was sold to M. M. Shipe.

In 1890-1891, street railway electrification was just being considered by only a very few cities in the United States. Mr. Shipe showed wonderful foresight and persistency in pushing this improvement to a successful conclusion. So that on February 27, 1891, Austin saw its first electric car - trolley - in operation by the Austin Rapid Transit Railway Company. By the end of the year routes were operating on five miles of track.

There was a short period in 1900, when the failure of the Austin Dam forced the Company, which was then purchasing its power from the City, to revert to the use of the mule cars until it could build its own power plant. Since then, the Company generated its own power.

In October of 1939, the City had passed an ordinance requiring the replacement of buses on all streets which had carried trolleys. Streetcars gave way to buses completely in 1940 when the 6th Street trolley made its last run.

In 1955 Austin Transit Corporation (ATC) took over the operation of the city transit service. ATC, whose parent company is American Transit Corporation, operated the system continuously as a private company under a franchise from the City of Austin from 1955 until July 31, 1970. In January, 1970, the City offered ATC a new five-year franchise. But ATC refused to accept this offer, partially because of a failure of the city to prohibit issuance of a franchise to any other firm for the operation of a shuttle bus system for the University of Texas, a policy which Austin Transit Corporation advocated. It is worth mentioning at this point that it appears that ATC would now be willing to cooperate with the current shuttle bus system in developing a coordination plan between the two because of the present energy situation. In August, 1970 Transportation Enterprises, Incorporated (TEI), the company which currently operates the University Shuttle Bus System, received approval from the City to operate the city transit system. This arrangement lasted until March, 1971, when the City of Austin again contracted with ATC to resume operation of the system. Under the terms of this contract, ATC provides the buses, facilities, and personnel needed to manage and operate the city transit system. Also, the City of Austin may make monthly payments to ATC in order that ATC achieves an operating ratio of ninety-five per cent for the bus system if fare box revenues alone do not produce this figure.

Source: History of the UT Shuttle System. Written in 1974.

Transit system became a City entity.