General Motors streetcar conspiracy

The General Motors streetcar conspiracy refers to a contention that General Motors (GM), acting in conjunction with several other companies and through the National City Lines (NCL) holding company, illegally acquired many streetcar systems in various cities around the United States, dismantled and replaced them with buses for the express purpose of promoting the automobile.

The case for the conspiracy

It is argued that Alfred P. Sloan, Jr., long-time president of GM in the early 20th century, developed a business strategy to expand auto sales and maximize profits by eliminating streetcars. In 1922, according to GM's own files, Sloan established a special unit within the corporation which was charged, among other things, with the task of replacing the United States' electric railways with cars, trucks, and buses.

Related Topics:
Alfred P. Sloan, Jr. - 20th century - 1922

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For instance, between 1926 and 1936 GM acquired New York Railways. Bad service reduced reliability and thus actively created the trend towards private transport that GM advertised. By underinvestment and poor service the public transport system was systematically destroyed.

Related Topics:
1926 - 1936 - New York Railways - Private transport - Underinvestment - Poor service - Public transport

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A 1974 report by Bradford Snell ignited the conspiracy theory by claiming that General Motors was convicted of conspiracy in 1949 (and fined $5000) in their program to buy up and destroy electric urban trolley systems so that urban transit would be forced to rely on GMC buses, and that this is the principal reason that modern-day trolley systems are rare in the United States today. Between 1936 and 1950, National City Lines, a holding company sponsored and funded by GM, Firestone, and Standard Oil of California, bought out more than 100 electric surface-traction systems in 45 cities (including New York, Philadelphia, St. Louis, Salt Lake City, Tulsa, and Los Angeles) to be dismantled and replaced with GM buses. In 1949 GM and its partners were convicted in U.S. district court in Chicago of criminal conspiracy in this matter and fined $5,000.

Related Topics:
1974 - Bradford Snell - 1949 - Trolley - Bus - 1950 - National City Lines - Firestone - Standard Oil of California - New York - Philadelphia - St. Louis - Salt Lake City - Tulsa - Los Angeles - U.S. district court - Chicago

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