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. Local bus service outside the Portland city limits was operated by other private companies, including Portland Stages, Inc.; Tualatin Valley Stages, Inc.; Intercity Buses, Inc. and Estacada-Molalla Stages. These four were collectively – but unofficially – known as the "‘Blue Bus’ lines" or "Blue Buses". In 1964, RCT began negotiating to purchase the four suburban companies, but no deal was reached, and the four Blue Bus lines remained in operation until taken over by Tri-Met in 1970. Bus service