General Motors Bought Your Transportation Systems & Threw Them Away

Beginning in the 1920s, General Motors began investing in mass transit systems. According to historian Marty Jezer (and Congressional hearings held in 1974), between 1920 and 1955, General Motors bought up more than 100 electric mass transit systems in 45 cities, allowed them to deteriorate, and then replaced them with rubber-tired, diesel-powered buses.[1] Buses are more expensive, less efficient, and much dirtier than electric/rail systems. (And of course automobiles are even less efficient than buses, by far.)

In 1949, General Motors, Firestone Rubber, and Standard Oil of California were convicted by a federal jury of criminally conspiring to replace electric mass transit with GM-manufactured diesel buses; in a noteworthy illustration of justice for corporations, the court fined GM $5000 and forced H.C. Crossman, the GM executive responsible for carrying out GM's policy, to pay $1.00. Cities where GM managed to eliminate electric/rail systems, and replace them with buses and private cars, included New York, Philadelphia, Baltimore, St. Louis, Oakland, Salt Lake City, and Los Angeles.

Many people think of Los Angeles as the original automobile city. However, before GM converted the city to buses and private automobiles, Los Angeles was served by the largest electric/rail mass transit system in the nation. The Pacific Electric Railway ran more than 1000 trains per day over 760 miles of rail lines, carrying light freight as well as passengers. Its last line, to Long Beach, was abandoned in 1961 --the same year the ingredients of smog were first identified in L.A.'s toxic air.

During this same period, GM worked to convert electric-powered commuter railroads to diesel-powered locomotives, which were far more expensive, more complex, and less reliable than electric locomotives, thus requiring more maintenance, and contributing significantly to the demise of the nation's railroad system. For example, the New York, New Haven, and Hartford line showed a profit during 50 years of operation until 1956, the year it began converting to diesel locomotives; by 1961 it was declared bankrupt and a report by the Interstate Commerce Commission censured GM for contributing to its demise.