In a 1922 memo that will live in infamy, GM President Alfred P. Sloan established a unit aimed at dumping electrified mass transit in favor of gas-burning cars, trucks and buses.
Just one American family in 10 then owned an automobile. Instead, we loved our 44,000 miles of passenger rail routes managed by 1,200 companies employing 300,000 Americans who ran 15 billion annual trips generating an income of $1 billion. According to Snell, "virtually every city and town in America of more than 2,500 people had its own electric rail system."
But GM lost $65 million in 1921. So Sloan enlisted Standard Oil (now Exxon), Philips Petroleum, glass and rubber companies and an army of financiers and politicians to kill mass transit.
Tuesday, November 18, 2008
Gaining Steam. Harvey Wasserman says, GM must rebuild the mass transit system it murdered, which I suggested here.