The Red Car's Decline

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Many people attribute the decline of Los Angeles public transportation to the General Motors streetcar conspiracy. While this did play a role, there were also many other contributing factors. The 1988 film Who Framed Roger Rabbit references the scandal. Scriptwriters Jeffrey Price and Peter S. Seaman explained “the Red Car plot, suburb expansion, urban and political corruption really did happen. In Los Angeles, during the 1940s, car and tire companies teamed up against the Pacific Electric Railway system and bought them out of business. Where the freeway runs in Los Angeles is where the Red Car used to be.” Railroad and real estate tycoon, Henry E. Huntington, purchased they Los Angeles Railway in 1898 and started operation in 1901 (Walker). …show more content…

He wrote:

“This is an urgent warning to each and every one of you that there is a careful, deliberately planned campaign to swindle you out of your most important and valuable public utilities – your Electric Railway System.” (Span)

According to Colin Divall and Winstan Bond, Quinby had a political agenda. Quinby founded the Electric Railroader’s Association in 1932 “not merely to preserve and publish information on electric railways, but also to lobby on their behalf wherever they were threatened.” Regardless, this spawned the 1947 court case United States v. National City Lines Inc.. Nine Corporations and seven individuals were indicted in the Federal District Court of Southern California, and later the Federal District Court of Northern Illinois, and charged with “conspiring to acquire control of a number of transit companies, forming a transportation monopoly” along with “conspiring to monopolize sale of buses and supplies to companies owned by National City Lines” (Lindley). The Sherman Anti Trust Act, passed by Congress in 1890 had prohibited such a monopoly. In 1949, Firestone Tire, Standard Oil of California, Phillips Petroleum, General Motors, and Mack Trucks were convicted of conspiring to monopolize the sale of buses and related products to transit companies controlled by National City Lines; however, they were acquitted of conspiring to monopolize ownership of these companies. The verdicts were upheld on appeal in 1951. General Motors was fined $5,000 and H.C. Grossman, the treasurer of General Motors, was fined $1.

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