Leonard Shoen - Founder of U-Haul

Founder of U-Haul

In 1945, at the age of 29, Shoen co-founded U-Haul with his wife, Anna Mary Carty (1922-1957), in Ridgefield, Washington, just north of Vancouver. Anna Mary was the mother of Shoen's first six children. The company was started with an investment of $5,000. In the early years, the Shoens routinely worked 16-hour days, and reinvested all their earnings back into the business. He began building rental trailers at the Carty Ranch in Ridgefield, owned by his parents-in-law, and splitting the fees for their use with gas station owners whom he franchised as agents. The first U-Haul Rental Agent was a Mobil station on Interstate St. in Portland. These early deals were based on little more than a wink and a nod. He developed one-way rentals and enlisted investors as partners in each trailer as methods of growth. In 1951, Shoen reorganized the U-Haul Trailer Rental Company under a new holding company, ARCOA (Associated Rental Companies of America) Inc.

By 1955, there were more than 10,000 U-Haul trailers on the road and the brand was nationally known. The corporate offices were in Portland, until a 1967 relocation to Phoenix, Arizona. While distracted to some extent by growing his business, Shoen also managed multiple marriages after the death of his first wife from a congenital heart defect, and eventually had a total of 13 children, each of whom he made a stockholder. Shoen married Suzanne Gilbaugh in 1958, and they had five more children. Shoen divorced Gilbaugh, and married Suzanne Whitmore in 1978. Some observers say that Shoen saw it as his duty to confer upon his children the fruits of his labors, others say it was to avoid taxes. In either case, he had transferred all but 2% of control to his children when 2 of them, Edward and Mark launched a successful takeover of the business in 1986. "Had Leonard Shoen spent five hundred dollars for a lawyer in 1950," said one associate, "none of the rest would have followed."

In the 1960s, Shoen diversified his holdings by creating Amerco Inc., from Advanced Management Engineering and Research Company. He pronounced the acronym, "a miracle."