SOUTHEASTERN MICHIGAN TRANSPORTATION AUTHORITY
THE FEDERAL GOVERNMENT'S MOVE TO SAVE PUBLIC TRANSIT:
During World War II, transit ridership across the United States would skyrocket, as transit agencies across the country
would benefit from government imposed gasoline rationing implemented during the war, which forced Americans to turn
to public transit in droves.
l But that period in U.S. history would be the last hurrah for public transit in America, especially
for those transit systems that were privately-owned.
l Not only was the automobile now much more affordable for many
American families after the war,
l but the construction of new roadways and federally-financed expressways, including the
Interstate Highway System, made automobile commuting more attractive.
l As quickly as 1950, transit ridership numbers
across the country had plummeted to record lows.

With a decline in ridership and revenue,
l many transit companies were forced to abandon their streetcars (with their high
capital costs) for less expensive diesel coaches.
l Many city governments were forced to take-over transit operations from
privately-owned companies and form publicly-owned transit authorities.  But continued ridership loses, coupled with high
labor costs, employee strikes, and inflation, would take its toll on the industry. By the 1960s, public transit had ceased as
a profit-making enterprise.   An industry that once paid taxes to municipal governments now had to depend on local tax
dollars to survive.  Since the federal government had already been financing the building of new roads since 1916, many
desperate cities now began turning to the federal government to seek similar funding to support public transit.

The move in the direction toward federal participation in local transportation funding was stimulated by a "Transportation
Message to Congress" by
President John F. Kennedy on April 5, 1962.l In that message, the President recommended
that  Congress establish a long-term program of Federal aid to urban mass transportation  in the form of direct grants to
regional mass transportation systems across the country.
ll That message opened a new era in urban transportation and
would lead to this country's first real effort to provide federal assistance for urban mass transportation development.

In 1964,  the
88th United States Congress  would pass the Urban Mass Transportation Act of 1964 l(Public Law
88-365)
. The act, signed into law by President Lyndon B. Johnson on July 9, 1964, provided $375 million for large-
scale urban public or private rail projects in the form of matching funds to cities and states.  The objective of the act was
"l...to  encourage  the planning and establishment of  areawide urban mass transportation systems
needed for economical and desirable urban development."
  The  Urban  Mass Transportation Act  would
authorize federal capital grants for up to two-thirds of the cost of transit  improvements,  including  equipment  for mass
transportation (including buses), and the construction and reconstruction of transit facilities.
l  However, all  federal funds
had to be channeled through approved public agencies.
l The releasing of these new federal grant dollars would no doubt
positively impact public transit operations across the country, including here in Metropolitan Detroit.

THE METRO DETROIT PRE-SEMTA YEARS:
Meanwhile,  public transportation in Metropolitan Detroit during the 1960s consisted of the Detroit owned–and–operated
Department of Street Railways (DSR), and numerous privately-owned suburban bus companies, including: DeLuxe
Motor Stages
,  Great Lakes Transit Corp.,l Lake Shore Coach Lines,  Martin Lines,  Metropolitan Transit Inc.,
and  
Northville Coach Lines.   However, the long decline in patronage and revenues experienced by transit operations
nation-wide was also being experienced by Detroit area bus companies, including the
DSR; convincing a number of local
leaders that a regional approach was necessary for public transit to survive in Metro Detroit.
NEW STATE FUNDING FOR REGIONAL TRANSIT AUTHORITIES:
In early 1973, SEMTA would finally be granted a much needed ongoing source of funding from the state. On December
31, 1972, the
Michigan State Legislature would amend Act 51 of the Public Acts of 1951 with the passage of Act
327 of the Public Acts of 1972
,l which was signed into law by Governor William Milliken on January 3, 1973.  l This
amendatory act would finally provide eligible  state transit authorities with a guaranteed source of funding by establishing
a separate statewide
General Transportation Fund created within the state's motor vehicle highway fund. l This newly
established form of revenue would be largely funded by an additional
per gallon gasoline tax, with one quarter of that
money (
½ cent per gallon) slated for mass transit usage. l Though far short of what would be needed to provide a fully-
funded regional system, the funding allowed
SEMTA to begin making substantial progress toward achieving its goals.  

Meanwhile, by the early seventies, a number of bus companies in the area,  including the
DSR (whose ridership numbers
had dropped 25% in five years), were facing huge revenue loses and possible bankruptcy.  With the state's new gas tax
funds,
SEMTA was able to enter into a number of short-term "purchase-of-services" agreements, where SEMTA would
pay local bus companies for maintaining service on their own routes. This arrangement managed to keep the companies
in operation until many were later bought-out by
SEMTA.l This type of arrangement would also kept the Detroit system
in operation through the remaining
DSR years.

Purchase-of-service agreements were also used by
SEMTA to launch a series of Direct Access Shuttle (DASH) routes
linking various suburbs, and to relaunch suburban service recently discontinued by the
DSR. l These service agreements
would also be used to take over the operation of Pontiac's bus lines.
l After that city cancelled its service contract with the
Pontiac Transit Corp. in  late 1970, the city's Department of Public Works took over the bus routes effective February
2, 1971, as the
Pontiac Municipal Transit Service.  New coaches were purchased and the four routes were combined
into two.
l However, effective July 2, 1973, the small city-run system (including drivers) was transferred-over to SEMTA,
which would use purchase-of-service agreements with
Great Lakes Transit to operate the two former Pontiac routes.

SUBURBAN BUS COMPANIES PURCHASED:
The growth of  SEMTA can be somewhat compared to the growth of the federally funded AMTRAK,l which was able to
increase its size by acquiring a number of smaller passenger railroad companies.
l With state funds now available, SEMTA
was now in a better position to finally begin acquiring the transit providers located within its region.  First on the list would
be  
Metropolitan [Metro] Transit, based out of Dearborn, which serviced the Detroit western and downriver suburbs.
The company's 60 buses and 14 routes were purchased for
$1.3 million. ll SEMTA took-over operations on January 1,
1974, with the routes renumbered as
M-1, M-2, etc., which would form the new Metropolitan Division.

Next  would come the purchase of  
Great  Lakes Transit,ll based out of Birmingham,  which serviced the northern east
and west suburbs as well as the downriver city of Wyandotte.   The company's vast number of routes were based off of
three trunk lines along Gratiot, West Jefferson and Woodward Avenues, with various  alternate,  local  and  limited routes
branching off the main lines.
l Great Lakes' 104 buses and three garages were purchased for $2.2 million, with SEMTA
taking over operations effective April 1, 1974.  Although most former Great Lakes routes were assigned route numbers
prefixed with the letter
"G", its Roseville garage operation was reassigned to the Lake Shore division, and the Wyandotte
operation moved to the Metropolitan division.  The remaining routes now formed
SEMTA's new Great Lakes Division.

The last and smallest of the suburban operators purchased by
SEMTA was the Martin Lines,l which serviced Royal Oak
into Detroit and Highland Park.
ll  The company's 19 buses and two routes were purchased for $345,000,l with SEMTA
operation beginning March 20, 1975. SEMTA was also able to acquire the company's five-state Interstate Commerce
Commission (ICC)
charter license, which it would continue to utilize for its interstate chartered service operation.  With
the acquisition of
Martin Lines, SEMTA's suburban consolidation program had now been completed.
FOR "SEMTA HISTORY: THE MOVE AWAY FROM REGIONAL TRANSIT" SEE: PART-II
DETROIT TRANSIT HISTORY
DETROIT TRANSIT HISTORY
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Back in 1932, the Detroit DSR was granted the sole authority to operate public transit within the Detroit city limits.
However, a number of suburban bus companies were still allowed to operate on a restricted basis; transporting
suburban residents to and from downtown Detroit.  In this August 1969 photo, taken prior to the take-over of the
suburban lines by SEMTA, Great Lakes Transit coach #1501 is south along Woodward Avenue at Congress Street
in Downtown Detroit.  DSR route #10 Woodward coach #2706 can be seen approaching in the background.
(photo courtesy of the Krambles-Peterson archive collection: G. Mac Sebree photo)
The above article was complied from information gathered from various Detroit Free Press and The Detroit News newspaper articles
supplied by Stan Sycko; and from miscellaneous Jack E. Schramm MCA articles on the history of SEMTA and SMART, and on Detroit
suburban buses. Additional sources include, the 1977 SEMTA Annual Report; the August 10, 1972 edition of the Grosse Pointe News;
and the EH.net online article "Urban Mass Transit In The United States"

For a more detailed account on the history of both SEMTA and SMART, along with the history of the Pontiac Bus System, see the
October-December 2003 edition of Motor Coach Age magazine.
Detroit's first move toward regional transportation came in early 1964, when then DSR general manager Lucas  S. Miel
proposed saving the financially-troubled system by merging it with a three-county transit agency.
l While the city charter
mandated that the
DSR must operate from fare box revenues alone, a newly–created transit authority would be able to
receive tax subsidies.  With the support of
Mayor Jerome P. Cavanaugh, a charter amendment proposal came under
consideration which sought to merge the
DSR with a newly-formed public transportation department tentatively known
as the  
Rapid Transit Authority.  The amendment would also authorise the DSR to extend its operating area ten miles
beyond the city limits, pending approval from the state legislature.

But the proposal couldn't muster enough support. Instead, Detroit voters were asked to approve a charter amendment
authorizing the
DSR to share in the Federal Government's $375 million urban-transportation aid program, passed by the
U.S. Congress a few months prior.  The proposed amendment also allowed the Common Council to appropriate from
the city's General Fund the required (one-third) matching monies needed for the
DSR to obtain the federal grants.  This,
along with a few other changes implemented by the charter amendment, managed to momentarily keep the
DSR afloat.

Even though the Sept. 1964 charter changes would manage to temporarily give the Detroit system new life,
l it still didn't
address the region's pressing need for regional transportation.
l With the surrounding suburbs still being serviced by small
independent financially-strapped bus companies, the passage of the
Urban Mass Transportation Act of 1964 helped
to generate discussions toward a southeast Michigan region–wide approach.  Such a system would meet the new federal
requirement leanings toward regional transit planning and better qualify the area for newly available federal capital grants.

Interestingly, Detroit city officials were quick to jump on the regional transit bandwagon.  Mayor
Cavanaugh, along with
his Special Assistant to the Mayor,
Robert  E. Toohey (who became DSR general manager in 1968), worked  feverishly
in pushing toward a regional authority favoring control by the City and the
DSR, rather than having the city bus system
(which was now back to operating in the black) be absorbed by a regional system.
l However, most out-state lawmakers,
probably fearful of more big-city influence, were reluctant, and had a different idea in mind.

REGIONAL TRANSPORTATION AUTHORITY CREATED:
On  July 10, 1967,  the Michigan State Legislature passed the Metropolitan Transportation Authorities Act of
1967
(Public Act 204),  which authorized the creation of numerous metropolitan transportation authorities across the
state.  One provision in the new legislation
(Section 124.405)  specified the formation of the Southeastern Michigan
Transportation Authority (SEMTA)
. This newly founded regional transit authority was organized with the long-range
goal of developing and operating a coordinated  public  mass  transportation  system  within  the  seven-county  Detroit
metropolitan region.  The counties included in the authority were: Macomb, Monroe, Oakland, St. Clair, Washtenaw, and
Wayne.  The mostly rural Livingston County would come on board sometime shortly afterward.

Not only was this new Authority—defined by the enabling legislation as a public benefit agency and instrumentality of the
state
l with all the powers of a public corporation—charged with planning, constructing, maintaining, replacing, improving,
extending and contracting for services between the numerous transit  providers located  within its territorial  boundaries,
but to eventually acquire and consolidate the eighteen bus companies which operated within the region.  These included
a number of intercity bus operations,
l the six financially–strapped transit bus companies that ran between Detroit and its
surrounding suburbs,
l and a few even smaller operations outside the city limits, such as The Bee Line, Pontiac Transit
Corp
. and Port Huron Transit Co.  It would also include acquiring the City of Detroit owned-and-operated DSR.

Unfortunately,
l this new legislation did not grant SEMTA with any powers to levy taxes or with any continuing source of
funding.  Consequently,  
SEMTA had to depend upon acquiring federal grants through the financial assistance provided
by the local communities and transit properties within the region.  The assistance provided by these agencies would help
to provide the matching one-third local share money needed to qualify for federal grants.  This arrangement would have
to suffice until other funding sources could be obtained. This kind of joint financial cooperation would succeed in assisting
SEMTA in obtaining federal funding for two major projects during the early 1970s.
SEMTA HISTORY - PART I: DETROIT'S MOVE TOWARD REGIONAL MASS TRANSIT
Prior to the formation of a regional transit authority in 1967, a number of independent privately-owned bus companies
serviced the surrounding Detroit suburbs. The above photos show General Motors built "old-look" and "new-look"
coaches that operated along Metro Detroit streets during the 1960s.  The bus companies featured above are: Great
Lakes Transit
(top row), Lake Shore Coach Lines (middle row) and Metropolitan [Metro] Transit (bottom row).
(Photos courtesy of: Jim Husing Collection (top row) and the Krambles-Peterson archive collection)
FIRST NEW BUSES PURCHASED BY SEMTA
In 1971, SEMTA ordered 154 "air-conditioned" GMC built
T8H-5307A's, with 20 reserved for its suburban operation.  
Coach #1267
(above) was one of ten coaches, #1266-1275,
leased to Great Lakes Transit. Ten other coaches, #37-46,
were leased to Metropolitan Transit. These 8-cylinder
diesels came equipped with water-filled front bumpers.
(Photo source: MCA Magazine, GM photo)
Of the 154 new buses purchased by SEMTA in 1971, all but
20 went to the Detroit DSR system, which were numbered  
#2801-2934.  Although 99 of the coaches were owned by
the DSR, 35 were leased to the City. The DSR fleet also
came with water-filled front bumpers, but were all removed
by the time coach #2887
(above) was photographed.
(Photo source: Melvin Bernero photobucket.com collection)
With the acquisition of Lake Shore Coach Lines, effective September 1, 1971,  SEMTA had become (for the very first
time) an official operating agency.  The Authority now owned
44 buses (with the latest models purchased in 1967),  four
bus routes, and one bus garage located on Edlie Street south of E. Jefferson in Detroit.  The four routes were numbered
L-1 thru L-4 and became SEMTA's new Lake Shore Division.l To bolster service, SEMTA also acquired ten retired GM
TDH-5105 'old-look' coaches from the
DSR, which were renumbered #430-439.  In 1972, two more TDH-5105's were
purchased, one from
Great Lakes Transit and another from the DSR (renumberedl #440-441 respectively), bringing
the total Lake Shore fleet to
56 buses.  SEMTA was now officially in the business of operating transit buses.   

This regional cooperation had also been demonstrated in a more broader sense during the earlier months of 1971.  Since
the two-thirds share of federal grant money for purchasing new coaches would now have to  be  channeled through the
recognized regional transit authority, a joint cooperative agreement had to be reached in order for
SEMTA to be able to
place its first coach order for
154 new GMC transit buses. The local one-third share for these coaches would be covered
by
$1.2 million from the City of Detroit (including $158,000 from DSR funds),  $818,000 from the State of Michigan,
and
$100,000 apiece from two area suburban bus companies; Metropolitan Transit, Inc. andl Great Lakes Transit
Corp
.   Since the operating revenues were insufficient at the time to purchase new buses for the struggling Lake Shore
Coach Lines
(which later announced it was discontinuing operations) the company had to back–out of the cooperative
agreement.  

With the various entities now agreeing to put up the local
$2.2 million shared cost of the $6.6 million coach order, the
remaining two–thirds would now be covered through a
$4.4 million federal UMTA grant to SEMTA.  This arrangement
made it possible for
99 of the coaches to be owned by the DSR, with the remaining 55 coaches owned by SEMTA.  Of
the
SEMTA owned buses, ten were leased (for token fees) to Metro Transit, ten leased to Great Lakes Transit, and
35 were leased to the DSR.  These new GMC built "air–conditioned" coaches (model T8H-5307A) were all equipped with
two-way radios, heated front door steps, impact–absorbing water-filled front bumpers, and the more powerful 8-cylinder
Detroit Diesel 8V-71 engines.  
SEMTA was now becoming a major player in the Detroit regional transit arena.
Between 1971-73 the Detroit DSR would finish
retiring and selling-off the last of its GM
TDH-5105 "old-look" coaches.  Eleven of these
buses were purchased by SEMTA to enhance
service on its Lake Shore Division routes.
(Photo source: Krambles-Peterson archive collection)
In  May  of 1971, the  suburban  bus  company  Lake  Shore  Coach
Lines
—which serviced the five Grosse Pointe communities and St. Clair
Shores into downtown Detroit—announced  that it  was  discontinuing
operations at the end of July.   To keep the service operating,
SEMTA
was able to persuade the six communities serviced by the company to
provide
(on a pro rata basis)  the required $78,000 local share money
needed to help
SEMTA acquire a $156,000 federal grant to purchase
the Lake Shore company.

In addition,  the six communities had also agreed to collectively pay up
to
$5,000 lper month  for any operational  loses sustained by SEMTA
in keeping the Lake Shore line running through December 31, 1972. It
was hoped by
SEMTA officials that by that time Governor William G.
Milliken
's  proposed  Mass  Transportation  Bill — which  had  been
passed by the House but stalled in the Senate Committee on Highways
since  February 1971 —- would become a reality and provide  
SEMTA
with an ongoing source of funding, and thus eliminate the need for the
use of community subsidies to keep the line running.
The unique website which takes a detailed look back at the History of Public Transportation in
and around the City of Detroit.
Consequently, a number of the smaller suburban transit companies which were never purchased, including Port Huron
Transit Company
, DeLuxe Motor Stages and Northville Coach Line, would either go out of business or eventually
leave the transit bus business.
l  Meanwhile,l subsidies were provided to a number of out-state intercity bus companies to
operate routes between smaller cities further outside the Detroit city limits.

Of course, number one on the
SEMTA priority list of bus system acquisitions was the city of Detroit's,l1,040-coach fleet,
Department of Street Railways (DSR). l But that would become a task easier said than done. l Although negotiations
on the sale of the
DSR appeared somewhat optimistic by late 1973,  things would take a major turn in another direction
upon the arrival of a newly elected city administration that would take office in January of 1974.
SUBURBAN TRANSIT BUS OPERATIONS ACQUIRED BY SEMTA
COMPANY PURCHASED
DATE
ACQUIRED
ACQUISITION
COSTS
SERVICE INFORMATION
LAKE SHORE COACH LINES, INC.
(Detroit, MI)
Sept. 1, 1971
$234,000
(via UMTA grant)
Serviced the five Grosse Pointe communities
and St. Clair Shores
(44 coaches – 4 routes)
PONTIAC MUNICIPAL TRANSIT SERVICE
(Pontiac, MI)
July 2, 1973
(no costs)
Municipal-owned system servicing only the city of
Pontiac, transferred over to SEMTA
(5 coaches – 2 routes)
METROPOLITAN TRANSIT, INC.
(Dearborn, MI)
Jan. 1, 1974
$1.3 million
Service into the western and downriver suburbs
including: Dearborn, Dearborn Heights, Wayne,
Westland, Taylor and Riverview
(60 coaches – 14 routes)
GREAT LAKES TRANSIT CORP.
(Birmingham, MI)
April 1, 1974
$2.2 million
Service into the northern and downriver suburbs
including: Wyandotte, Trenton, Southfield,
Birmingham, Roseville, Pontiac and Mt. Clemens
(104 coaches – 3 trunk routes, (??) branches)
MARTIN LINES, INC.
(Royal Oak, MI)
Mar. 20, 1975
$345,000
Serviced Highland Park, Royal Oak and Troy,
with limited inter-state ICC charter operation
(19 coaches – 2 routes)
Although SEMTA would experiment with a number of paint scheme designs during the early-'70s (left photo), most of its fleet
would sport their pre-SEMTA colors, with the original SEMTA logo displayed along the side, for a number of years.  In right photo,
former Metro Transit coach #16
(a 1965 GM model TDH-5303) still sports its Metro colors four years after the sale to SEMTA.
(Photos courtesy of the Stan Sycko collection (left) and the Melvin Bernero photobucket.com collection (right))
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