National City Lines
Encyclopedia
National City Lines, Inc. (NCL), was a controversial company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...

 founded in Minnesota
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...

, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 in 1920 as a modest local transport company operating two buses which was reorganized into a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

 in 1936 with equity
Equity (finance)
In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists...

 funding from General Motors, Firestone Tire, Standard Oil of California and Phillips Petroleum
Phillips Petroleum
Phillips Petroleum Company was founded in 1917 by L.E. Phillips and Frank Phillips, of Bartlesville, Oklahoma. Their younger brother Waite Phillips was the benefactor of Philmont Scout Ranch....

 for the express purpose of acquiring local transit systems throughout the United States in what became known as the Great American Streetcar Scandal. The company formed a subsidiary, Pacific City Lines
Pacific City Lines
Pacific City Lines was a company formed in 1937 as a subsidiary to National City Lines in Oakland, California. Its function was to purchase streetcar systems in the western United States as part of what became known as the Great American streetcar scandal...

 in 1937 to purchase streetcar
Tram
A tram is a passenger rail vehicle which runs on tracks along public urban streets and also sometimes on separate rights of way. It may also run between cities and/or towns , and/or partially grade separated even in the cities...

 systems in the western United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. National City Lines, and Pacific City Lines were indicted in 1947 on charges of conspiring
Conspiracy (civil)
A civil conspiracy or collusion is an agreement between two or more parties to deprive a third party of legal rights or deceive a third party to obtain an illegal objective....

 to acquire control of a number of transit companies, and of forming a transportation monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

 for the purpose of 'Conspiring to monopolize sales of buses and supplies to companies owned by National City Lines'. They were convicted on the first charge but not the second in 1949.

History

The company was formed in 1920, operating two buses in Minnesota
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...

 by E. Roy Fitzgerald and his brother transporting miners and schoolchildren. In 1936 the company was organized into a holding company. In 1938, National City Lines wished to purchase transportation systems in cities "where street cars were no longer practicable" and replace them with passenger bus
Bus
A bus is a road vehicle designed to carry passengers. Buses can have a capacity as high as 300 passengers. The most common type of bus is the single-decker bus, with larger loads carried by double-decker buses and articulated buses, and smaller loads carried by midibuses and minibuses; coaches are...

es. To fund this expansion the company obtained equity
Equity (finance)
In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists...

 funding from companies seeking to increase sales of commercial buses and supplies, including General Motors, Firestone Tire, Standard Oil of California and Phillips Petroleum.

In 1936, they bought 13 transit companies in Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...

, Oklahoma
Oklahoma
Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...

 and Michigan
Michigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....

, then in 1937, they replaced streetcars in Butte, Montana
Butte, Montana
Butte is a city in Montana and the county seat of Silver Bow County, United States. In 1977, the city and county governments consolidated to form the sole entity of Butte-Silver Bow. As of the 2010 census, Butte's population was 34,200...

 and made purchases in Mississippi
Mississippi
Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...

 and Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...

. Sometimes these systems were already run down, but not always. Major investment had recently been made with improvements to the streetcars systems in Butte and Beaumont, Texas
Beaumont, Texas
Beaumont is a city in and county seat of Jefferson County, Texas, United States, within the Beaumont–Port Arthur Metropolitan Statistical Area. The city's population was 118,296 at the 2010 census. With Port Arthur and Orange, it forms the Golden Triangle, a major industrial area on the...

.

In 1938 the company entered into exclusive dealing arrangements and obtained equity funding from companies seeking to increase sales of commercial buses and supplies, including General Motors, Firestone Tire, Standard Oil of California and Phillips Petroleum
Phillips Petroleum
Phillips Petroleum Company was founded in 1917 by L.E. Phillips and Frank Phillips, of Bartlesville, Oklahoma. Their younger brother Waite Phillips was the benefactor of Philmont Scout Ranch....

. The company was indicted in 1947 and was later convicted in the United States District Court for the Northern District of Illinois
United States District Court for the Northern District of Illinois
The United States District Court for the Northern District of Illinois is the trial-level court with jurisdiction over the northern counties of Illinois....

 of conspiring
Conspiracy (civil)
A civil conspiracy or collusion is an agreement between two or more parties to deprive a third party of legal rights or deceive a third party to obtain an illegal objective....

 to monopolize
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

 the sale of buses and related products to the local transit companies that they controlled.

Over 1938 and 1939 the company made purchases in Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...

, Indiana
Indiana
Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...

 and Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...

. and by 1939, it owned or controlled 29 local transportation companies in 27 different cities in 10 states.

By 1947 the company owned or controlled more than 100 electric streetcar systems in 45 cities including, but not limited to, Baltimore
Baltimore
Baltimore is the largest independent city in the United States and the largest city and cultural center of the US state of Maryland. The city is located in central Maryland along the tidal portion of the Patapsco River, an arm of the Chesapeake Bay. Baltimore is sometimes referred to as Baltimore...

, St. Louis
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...

, Salt Lake City
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...

, Los Angeles
Los Angeles, California
Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California...

, Oakland
Oakland, California
Oakland is a major West Coast port city on San Francisco Bay in the U.S. state of California. It is the eighth-largest city in the state with a 2010 population of 390,724...

, Philadelphia
Philadelphia, Pennsylvania
Philadelphia is the largest city in the Commonwealth of Pennsylvania and the county seat of Philadelphia County, with which it is coterminous. The city is located in the Northeastern United States along the Delaware and Schuylkill rivers. It is the fifth-most-populous city in the United States,...

 and Tulsa
Tulsa, Oklahoma
Tulsa is the second-largest city in the state of Oklahoma and 46th-largest city in the United States. With a population of 391,906 as of the 2010 census, it is the principal municipality of the Tulsa Metropolitan Area, a region with 937,478 residents in the MSA and 988,454 in the CSA. Tulsa's...

. The company ultimately dismantled these systems and replaced them with bus systems in what became known as the 'Great American streetcar scandal' and formed the inspiration for the film Who Framed Roger Rabbit
Who Framed Roger Rabbit
Who Framed Roger Rabbit is a 1988 American fantasy-comedy-noir film directed by Robert Zemeckis and released by Touchstone Pictures. The film combines live action and animation, and is based on Gary K. Wolf's novel Who Censored Roger Rabbit?, which depicts a world in which cartoon characters...

.

American City Lines, which had been organized to acquire local transportation systems in the larger metropolitan areas in various parts of the country in 1943 merged with NCL in 1946. By 1947 the company owned or controlled 46 systems in 45 cities in 16 states.

In 1947 National City Lines, with others was indicted
Indictment
An indictment , in the common-law legal system, is a formal accusation that a person has committed a crime. In jurisdictions that maintain the concept of felonies, the serious criminal offence is a felony; jurisdictions that lack the concept of felonies often use that of an indictable offence—an...

 in the Federal District Court of Southern California
United States District Court for the Southern District of California
The United States District Court for the Southern District of California is the federal district court whose jurisdiction comprises the following counties in California: Imperial and San Diego. In terms of filed indictments, it is one of the busiest criminal districts in the United States...

 on two counts: 'conspiring
Conspiracy (civil)
A civil conspiracy or collusion is an agreement between two or more parties to deprive a third party of legal rights or deceive a third party to obtain an illegal objective....

 to acquire control of a number of transit companies, forming a transportation monopolize
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

' and 'Conspiring to monopolize sales of buses and supplies to companies owned by National City Lines' in what became known as the Great American streetcar scandal (or 'General Motors streetcar conspiracy', 'National City Lines conspiracy').

In 1948, the United States Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...

 (in United States v. National City Lines Inc.) permitted a change in venue to the Federal District Court in Northern Illinois
United States District Court for the Northern District of Illinois
The United States District Court for the Northern District of Illinois is the trial-level court with jurisdiction over the northern counties of Illinois....

. National City Lines merged with Pacific City Lines
Pacific City Lines
Pacific City Lines was a company formed in 1937 as a subsidiary to National City Lines in Oakland, California. Its function was to purchase streetcar systems in the western United States as part of what became known as the Great American streetcar scandal...

 the same year.

In 1949, General Motors, Standard Oil of California, Firestone and others were convicted
Conviction
In law, a conviction is the verdict that results when a court of law finds a defendant guilty of a crime.The opposite of a conviction is an acquittal . In Scotland and in the Netherlands, there can also be a verdict of "not proven", which counts as an acquittal...

 of conspiring to monopolize the sale of buses and related products to local transit companies controlled by NCL and other companies; they were acquitted
Acquittal
In the common law tradition, an acquittal formally certifies the accused is free from the charge of an offense, as far as the criminal law is concerned. This is so even where the prosecution is abandoned nolle prosequi...

 of conspiring to monopolize the ownership of these companies. The verdicts were upheld on appeal
Appeal
An appeal is a petition for review of a case that has been decided by a court of law. The petition is made to a higher court for the purpose of overturning the lower court's decision....

 in 1951. The corporations involved were fined $5000, their executives $1 apiece.

Operating areas and companies

There is considerable uncertainty and variability amongst sources as to where National City Lines operated.

The 1948 ruling stated that:

"Forty-four cities in sixteen states are included. The states are as widely scattered as California, Florida, Maryland, Michigan, Nebraska, Texas and Washington. The larger local transportation systems include those of Baltimore, St. Louis, Salt Lake City, Los Angeles and Oakland. The largest concentrations of smaller systems are in Illinois, with eleven cities; California with nine (excluding Los Angeles); and Michigan with four. The local operating companies were not named as parties defendant."

This table attempts to bring together the many sources detailing cities which were at one time of another owned or controlled by National City Lines. A star (*) indicates that NCL is understood to have had significant control but not ownership:
  • Alabama
    Alabama
    Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...

    : Mobile, Montgomery
  • California
    California
    California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

    : Burbank, Eureka, Fresno, Glendale, Los Angeles*, Oakland*, Sacramento, Inglewood, Long Beach, San Jose, Pasadena, Stockton
  • Florida
    Florida
    Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...

    : Tampa, Jacksonville*
  • Illinois
    Illinois
    Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...

    : Aurora/Elgin, Bloomington, Champaign, Danville, East St. Louis, Decatur, Galesburg, Joliet, Kewanee, LaSalle/Peru, Peoria, Quincy, Rock Island
  • Indiana
    Indiana
    Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...

    : South Bend, Terre Haute
  • Iowa
    Iowa
    Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...

    : Burlington, Davenport
    Davenport, Iowa
    Davenport is a city located along the Mississippi River in Scott County, Iowa, United States. Davenport is the county seat of and largest city in Scott County. Davenport was founded on May 14, 1836 by Antoine LeClaire and was named for his friend, George Davenport, a colonel during the Black Hawk...

    , Cedar Rapids
    Cedar Rapids, Iowa
    Cedar Rapids is the second largest city in Iowa and is the county seat of Linn County. The city lies on both banks of the Cedar River, north of Iowa City and east of Des Moines, the state's capital and largest city...

    , Ottumwa, Sioux City
  • Maryland
    Maryland
    Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...

    : Baltimore*
  • Michigan
    Michigan
    Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....

    : Jackson, Lansing, Kalamazoo, Saginaw, Pontiac
  • Mississippi
    Mississippi
    Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...

    : Jackson
  • Missouri
    Missouri
    Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...

    : St. Louis
    St. Louis, Missouri
    St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...

    *
  • Montana
    Montana
    Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,...

    : Butte, Great Falls
  • Nebraska
    Nebraska
    Nebraska is a state on the Great Plains of the Midwestern United States. The state's capital is Lincoln and its largest city is Omaha, on the Missouri River....

    : Lincoln
  • New York
    New York
    New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

    : New York
  • Ohio
    Ohio
    Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...

    : Canton, Portsmouth
  • Oklahoma
    Oklahoma
    Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...

    : Tulsa
    Tulsa, Oklahoma
    Tulsa is the second-largest city in the state of Oklahoma and 46th-largest city in the United States. With a population of 391,906 as of the 2010 census, it is the principal municipality of the Tulsa Metropolitan Area, a region with 937,478 residents in the MSA and 988,454 in the CSA. Tulsa's...

  • Pennsylvania
    Pennsylvania
    The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...

    : Philadelphia
    Philadelphia, Pennsylvania
    Philadelphia is the largest city in the Commonwealth of Pennsylvania and the county seat of Philadelphia County, with which it is coterminous. The city is located in the Northeastern United States along the Delaware and Schuylkill rivers. It is the fifth-most-populous city in the United States,...

    *
  • Texas
    Texas
    Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...

    : Beaumont, El Paso, Houston, Port Arthur, Wichita Falls
  • Utah
    Utah
    Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...

    : Salt Lake City
    Salt Lake City, Utah
    Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...

  • Washington: Bellingham, Everett, Spokane
  • Wisconsin
    Wisconsin
    Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...

    : Oshkosh


Additional information:
In Los Angeles
Los Angeles, California
Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California...

 the Los Angeles Railway (Yellow Lines)
Los Angeles Railway
The Los Angeles Railway was a system of streetcars that operated in central Los Angeles, California and the immediate surrounding neighborhoods between from 1901 and 1963. Except for two short funicular railways it operated on tracks...

 was controlled by NCL but not Pacific Electric Railway (Red lines)
Pacific Electric Railway
The Pacific Electric Railway , also known as the Red Car system, was a mass transit system in Southern California using streetcars, light rail, and buses...


National City Lines and the Montgomery Bus Boycott

Rosa Parks
Rosa Parks
Rosa Louise McCauley Parks was an African-American civil rights activist, whom the U.S. Congress called "the first lady of civil rights", and "the mother of the freedom movement"....

 was arrested for refusing to move to the back of the bus operated by Montgomery Bus Lines, a subsidiary of a National City Lines on 1 December 1955 which led to the Montgomery Bus Boycott
Montgomery Bus Boycott
The Montgomery Bus Boycott was a political and social protest campaign that started in 1955 in Montgomery, Alabama, USA, intended to oppose the city's policy of racial segregation on its public transit system. Many important figures in the civil rights movement were involved in the boycott,...

. Martin Luther King, Jr.
Martin Luther King, Jr.
Martin Luther King, Jr. was an American clergyman, activist, and prominent leader in the African-American Civil Rights Movement. He is best known for being an iconic figure in the advancement of civil rights in the United States and around the world, using nonviolent methods following the...

 and the Montgomery Improvement Association wired a letter to National City Lines on 8 December 1955 and the company's vice president. Kenneth E. Totten traveled to Montgomery
Montgomery
-In France:* Sainte-Foy-de-Montgommery, a commune in département Calvados, Normandy* Saint-Germain-de-Montgommery, idem* Colleville-Montgomery, idem-In Pakistan:...

the following week. The boycott lasted for just over a year and ended only after a successful ruling by the Supreme Court that allowed black bus passengers to sit virtually anywhere they wanted.
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