There were less than a million cars in Los Angeles, but congestion and traffic control had already become problematic. Arthur Loomis and Charles Chase, owners of a small toy and specialty lighting company, met with Leo Jennings, a City Electrician for Beverly Hills. Jennings asked the partners if they could build a stop sign with a built-in flashing red light, which would turn the light on and off depending on the time of day. The partners agreed and Jennings joined the venture as it created its first traffic product. The “Econolite” was born, and the name sticks.