10% of Americans had a car in 1920. To expand the market, various companies allegedly destroyed the electric streetcar as an alternative over the next 30 years.
Bradford Snell - LOVEARTH
- Sept 10, 2001
History has already repeated itself --Ed.
The electric streetcar, contrary to Van Wilkin's incredible naive whitewash, did not die a natural death: General Motors killed it. GM killed it by employing a host of anti-competitive devices which, like National City Lines, debased rail transit and promoted auto sales.
This is not about a "plot" hatch by wild-eyed corporate rogues, but rather about a consummate business strategy crafted by Alfred P. Sloan, Jr., the MIT-trained genius behind General Motors, 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 America's electric railways with cars, trucks and buses.
A year earlier, in 1921, GM lost $65 million, leading Sloan to conclude that the auto market was saturated, that those who desired cars already owned them, and that the only way to increase GM's sales and restore its profitability was by eliminating its principal rival: electric railways.
At the time, 90 percent of all trips were by rail, chiefly electric rail; only one in 10 Americans owned an automobile. There were 1,200 separate electric street and interurban railways, a thriving and profitable industry with 44,000 miles of track, 300,000 employees, 15 billion annual passengers, and $1 billion in income. Virtually every city and town in America of more than 2,500 people had its own electric rail system.... [Read More]