...scrapping streetcars and tearing up railways to replace them with GM's own buses running on Standard Oil supplied diesel.
By the end of the 1940s, GM had bought and scrapped over one hundred municipal electric transit systems in 45 cities and put gas-burning GM buses on the streets in their place. By 1955 almost 90% of the electric streetcar lines in the United States had been ripped out or otherwise eliminated.
...Another existential threat to the vast fortunes of the early oiligarchs was to require an even greater effort at social engineering: public transportation.
By the end of World War I, private car ownership was still a relative rarity; only one in ten Americans owned a car. Rail was still the transportation of choice for the vast majority of the public, and city-dwellers in most major cities relied on electric trolley networks to transport them around town. In 1936, General Motors formed a front company, "National City Lines," along with Firestone Tire and Standard Oil of California, to implement a process of "bustitution": scrapping streetcars and tearing up railways to replace them with GM's own buses running on Standard Oil-supplied diesel. The plan was remarkably successful.
As historian and researcher F. William Engdahl notes in "Myths, Lies and Oil Wars":
"By the end of the 1940s, GM had bought and scrapped over one hundred municipal electric transit systems in 45 cities and put gas-burning GM buses on the streets in their place. By 1955 almost 90% of the electric streetcar lines in the United States had been ripped out or otherwise eliminated."
The cartel had been careful to hide their involvement in National City Lines, but it was revealed to the public in 1946 by an enterprising retired naval lieutenant commander, Edwin J. Quinby. He wrote a manifesto exposing what he called "a careful, deliberately planned campaign to swindle you out of your most important and valuable public utilities — your Electric Railway System." He uncovered the oiligarchs' stock ownership of National City Lines and its subsidiaries and detailed how they had, step by step, bought up and destroyed the public transportation lines in Baltimore, Los Angeles, St. Louis and other major urban centres.
Quinby's warning caught the attention of federal prosecutors, and in 1947 National City Lines was indicted for conspiring to form a transportation monopoly and conspiring to monopolize sales of buses and supplies. In 1949, GM, Firestone, Standard Oil of California and their officers and corporate associates were convicted on the second count of conspiracy. The punishment for buying up and dismantling America's public transportation infrastructure? A $5,000 fine. H. C. Grossman, who had been the director of Pacific City Lines when it oversaw the scrapping of LA's $100 million Pacific Electric system, was fined exactly $1.
Unsurprisingly, GM and its associates did not remain in the doghouse for long. In 1953, President Eisenhower appointed Charles Wilson, then the President of General Motors, as Secretary of Defense. Wilson, with Francis DuPont of the Rockefeller-connected DuPont family as Chief Administrator of Federal Highways, oversaw one of the largest public works projects in American history: the creation of the interstate highway system. With a war-era excise tax on train tickets still in place and federally funded highways and airports providing cheaper alternatives, rail travel declined a startling 84% between 1945 and 1964.
This social engineering paid off well for Standard Oil and its growing list of petrochemical associates. In the two-and-a-half decades after the outbreak of World War II, vehicle production in Detroit almost tripled, from 4.5 million cars a year in 1940 to over 11 million in 1965. As a result, sales of refined gasoline over the same period rose 300%.
https://www.corbettreport.com/episode-310-rise-of-the-oiligarchs/
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