History Group
Question:
enotechris
Teacher
Vocational
Why did General Motors (GM) have to pay a fine of $5,000 in 1947?
What coercive business practices were they engaged in? How did that affect transportation systems in the United States?
Answers:
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cburr Teacher
Middle SchoolPosted by cburr on Wednesday January 28, 2009 at 7:11 AMGeneral Motors -- working together with Mack Truck, Phillips Petroleum, Standard Oil of California and Firestone Tires – were each fined $5,000 (except Standard Oil, which was fined only $1,000) for trying to monopolize bus transit by creating a system of transit lines that were required to use the products made by the conspirators. These companies also faced criminal conspiracy charges for taking over city transit systems through front companies in order to dismantle clean and inexpensive electric trolley service and replace it with petroleum-based bus service. Although the court rejected this second charge, there is extensive evidence that this did in fact take place.
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