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"Hindsights"


Looking back at:

Kerrville Bus Company: Moving People Across the Hill Country

By Michael Barr
Michael Barr

As soon as the army forced the Plains Indians to the reservation, the movers and shakers of the Texas Hill Country focused their energy, their money and the power of their imaginations on the problem of transportation. Now that the Indian wars were over, the difficulty of moving passengers and freight from point A to point B over miles of rough territory was the single biggest obstacle to progress. No one who crossed the Hill Country in the early 20th century took the subject lightly.

The railroad came to Kerrville in 1887 and to Fredericksburg in 1913, and while trains did a fair job hauling freight, the passenger service was not all it was cracked up to be. Train travel was slow and uncertain. There were frequent interruptions in service.

By 1920 travelers demanded more certainty and more flexibility than trains could provide. It was the horseless carriage that would have the greatest impact on Hill Country transportation.

Hal "Boss" Peterson was one of the first businessmen in this part of Texas to recognize the need for reliable passenger service. Boss and his brother Charlie owned Peterson Garage and Auto Company in Kerrville.

After WWI a growing number of Kerr County residents wanted access to medical services and shops in San Antonio, 65 miles away. Few people had cars back then, so Boss Peterson bought 3 sedans and began transporting passengers to and from the Alamo City. Demand grew, and in 1924 Boss and Charlie bought 5 buses, formed Kerrville Bus Company (KBC) and began the first scheduled bus service in the Hill Country.

Kerrville, TX - Peterson Bus Terminal
Peterson Bus Terminal
Click on image to enlarge

Courtesy Hal and Charlie Peterson Foundation

At that time the road from Kerrville to San Antonio was paved for the first 8 miles out of Kerrville and the last 19 miles into San Antonio. On a good day, Lord willing, a bus could cover the distance in 2 and ½ hours. It was possible for Kerrville passengers to travel to San Antonio by bus, see a doctor or do some shopping, have lunch and be back in Kerrville the same day.

As time passed the company expended. By 1930 KBC buses stopped in Fredericksburg on the way to and from Junction and points west. The Nimitz Hotel was the Fredericksburg terminal. The hotel remodeled the west wing of the ground floor to accommodate passengers and baggage. A Fredericksburg passenger could now make easy connections to San Antonio, Houston and Abilene.

That same year KBC purchased the Winn Bus Company operating between Austin and Houston. Financing was hard to find, so Boss Peterson got creative. He traded an 1800 acre farm near Kerrville for the company and equipment.

Then the Great Depression hit. The financial crisis crushed the economy, but it also created opportunity. There were bargains everywhere. When the profits of the 2 other Hill Country bus lines plummeted, Boss and Charlie bought them out at bargain prices. Now the Petersons controlled all bus service in the region.

Boss Peterson's practice was to use a bus for several years; then sell it in Mexico. Schreiner Bank of Kerrville financed the sale of old buses to Mexican companies even though the transactions were risky because there was no way to collect if the companies didn't pay. But the companies always paid. KBC and Schreiner Bank never lost a dime on sales to Mexico.

When the Depression ended, KBC had little debt and a good route structure and was positioned to churn out some spectacular profits. During WWII the number of riders soared as thousands of soldiers traveled by bus - often at government expense. Many KBC buses left the terminal with double the number of passengers the buses were designed to carry.

The transportation industry changed fast after WWII. KBC began using air-conditioned buses in 1948. In the early 50s the company fleet included 37-passenger deck and a half buses with diesel engines, restrooms, aqua mohair reclining seats and egg shell headrests.

By 1960 Kerrville Bus Company linked Abilene, Pecos, Big Spring and Fort Stockton on the northwest with San Antonio, Austin, Houston and Victoria on the southeast with connections, via Greyhound, to anywhere in the continental United States.

© Michael Barr
"Hindsights" March 1, 2021 Column
Sources:
Hal and Charlie Peterson: The Texas Peterson Brothers Who Risked a Fortune for a Hill Country Foundation, by Vicki J. Audette and J. Tom Graham.



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