Jump to content

National City Lines

From Alfawiki
National City Lines
Industrypublic transportation
Founded1936
Defunct2007
FateAcquired by Contran
HeadquartersChicago, Illinois, USA
Productsholding company managing streetcar and bus operations

National City Lines, Inc. (NCL) originated as a public transit holding company, evolving from the Fitzgerald brothers' bus services established in Minnesota in 1920. Starting with only two buses as a small local operator, it reorganized into a holding entity in 1936 and expanded rapidly after obtaining capital investments near 1938 from key industry suppliers such as General Motors, Firestone Tire, Standard Oil of California, and Phillips Petroleum. This funding facilitated acquisitions of local transit networks nationwide, focusing on replacing streetcar lines with bus systems—an initiative central to the so-called General Motors streetcar conspiracy. In 1937, NCL also created the subsidiary Pacific City Lines to concentrate on streetcar systems in the western United States. In 1947, both NCL and Pacific City Lines were indicted for conspiring to monopolize the sale of buses and related supplies to transit companies under their control; while acquitted on transit ownership monopoly charges, they were convicted in 1949 for monopolizing supply sales.

History

Beginning in 1920 with E. Roy Fitzgerald and his brother operating two buses in Minnesota, the enterprise expanded significantly by 1939 to encompass control over 29 local transit companies across 27 cities in 10 states. Established as a holding company in 1936, NCL prioritized acquiring transit systems where streetcars were becoming obsolete, subsequently replacing them with bus fleets. To support this growth strategy, NCL secured equity contributions from manufacturers aiming to increase sales of buses and associated products—these investors included General Motors, Firestone Tire, Standard Oil of California, Phillips Petroleum, and Mack Truck Company. The agreements often entailed exclusive purchasing arrangements, creating a vertically integrated operational model.

From 1936 through 1939, NCL acquired transit operations in states such as Illinois, Oklahoma, Michigan, Montana, Mississippi, Texas, Alabama, Indiana, and Ohio. Some of these systems were in poor condition at the time of purchase; however, others—for example Beaumont, Texas—had recently received capital improvements. The Butte transit system was replaced deliberately to alleviate pressure on its electric infrastructure that supported local industrial activity.

By 1943, American City Lines was formed to acquire urban transit networks and subsequently merged with NCL in 1946. At the time of their indictment in 1947, NCL had control over 46 systems spanning 45 cities across 16 states.

The legal proceedings concluded with convictions in 1949 for conspiring to monopolize bus and supply sales to their affiliated companies; penalties imposed were minimal—a $5,000 corporate fine and $1 fines for individual executives—indicating limited disruption to their business operations. The Supreme Court sanctioned venue changes during various phases of litigation. In 1948, National City Lines merged with Pacific City Lines and persisted with its policy of substituting streetcars with buses ("bustitution").

This corporate approach profoundly shaped urban transit markets by consolidating ownership of local systems while promoting bus-based transportation through strategic partnerships with suppliers and targeted acquisitions.

Areas of operation and affiliated companies

There are differing accounts regarding the locations where National City Lines conducted its operations.

The 1948 legal decision identified 44 municipalities in 16 states, including prominent transit networks in Baltimore, St. Louis, Salt Lake City, Los Angeles, and Oakland. The highest concentrations of smaller systems were found in Illinois (11 cities), California (9 cities excluding Los Angeles), and Michigan (4 cities). The specific local operating entities were not named as defendants in the case.

Below is a summary table listing the cities where National City Lines held ownership or exercised control over transit companies. An asterisk (*) denotes substantial control without direct ownership:

It is important to note that in Los Angeles, National City Lines controlled the Los Angeles Railway (Yellow Cars), but did not have authority over the Pacific Electric Railway (Red Cars).

Montgomery City Lines and the Montgomery bus boycott

Montgomery City Lines, a subsidiary of National City Lines, managed the municipal transit system in Montgomery, Alabama.

On December 1, 1955, Rosa Parks was detained for refusing to relinquish her seat to a white passenger on a Montgomery City Lines bus. This incident ignited the Montgomery bus boycott. The company became a focal point in the struggle between Montgomery’s African American community and segregation laws enforced by the city. Shortly thereafter, Transportation Superintendent J. H. Bagley released a statement clarifying that Montgomery City Lines was obligated to comply with local and state regulations but was not responsible for creating those laws.

Following correspondence from Martin Luther King Jr. and the Montgomery Improvement Association addressed to National City Lines on December 8, 1955, Vice President Kenneth E. Totten traveled to Montgomery to engage with community concerns.

The boycott endured for more than one year and resulted in losses amounting to $750,000 (equivalent to $ million today) for the company. It concluded after the United States Supreme Court upheld the ruling in Browder v. Gayle, which affirmed African American passengers’ right to occupy any seat on public buses.

Subsequent developments

In 1959, National City Lines broadened its scope by acquiring the trucking firm Los Angeles-Seattle Motor Express (LASME). LASME later combined with DC International and T.I.M.E. in 1968 to establish T.I.M.E.-DC. The company divested its transportation management sector in 1978.

In early 1981, financier Harold C. Simmons gained control of National City Lines through a stock tender offer executed by his C tran Corp., thereby acquiring authority over T.I.M.E.-DC. Nevertheless, T.I.M.E.-DC ceased operations in 1988 due to escalating financial losses. National City Lines continued as a subsidiary within Simmons’ Contran enterprise until it was officially dissolved on December 31, 2007.

Notes

For source materials related to these notes and further references, please consult the reference section below.


References

Documents cited in the 'Notes' section above




External links

Retrieved from "https://www.alfawiki.org/index.php?title=National_City_Lines&oldid=8496"