Minneapolis spokesman. [volume] (Minneapolis, Minn.) 1934-2000, 1944-11-10
NAACP Attacks
F. III. A., Charges
Biased Policies

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tailed memorandum indict-
ing discriminatory policies of
the FILA during the past sew
eral years, and calling for
their immediate removal was
sent to the President by the
NAACP. In a predatory letter
summarizing the complaints con-
tanned in the memorandum, Walter
White said: eve contend that the
current operations of the FILA pro-
gram (1) discriminate against Ne
gro applicants; (2) promote racial
residential segregation; (3) prevent
this potentially effective agency
from making any significant con-
tribution to meeting the basic hous-
ing needs of Negroes; (4) run
counter to the present trend of
judicial decisions regarding racial
restrictive covenants; (5) contrib
ute to the use of racial tensions by
restriction of living space and hous-
ing accommodations; (6) impair the
democratic process and our Good
Neighbor policy"
Some of the excerpts in the mem
orandum from the underwriting
Manual issued by FILA, proving the
agency is rapidly moving into a re-
dictionary and untenable position
instead of using the funds and
power of all citizenry on the side
of sound housing and social poll
cies, follow:
Mortgages
''In rating mortgage risks the
Manual lists Protection from Ad-
verse Influences, which includes
prevention of lower class occupancy
and inharmOniOus racial groups.
"The Manual further states: If
a neighborhood is to retain sta
bility it is necessary that proper
ties shall continue to be occupied
by the same social and racial
classes
Appraisals
'In the case of undeveloped or
other sparsely developed areas, the
Valuator is warned that deed re-
strictions should include: 'Prohibi-
ton of the occupancy of properties
except by the race for which they
are intended
"The exact language of proposed
racial restrictive covenants is found
in the Outline of Protective Cove
nants: No person of any race other
than the shall use or occupy
any building or any lot except that
his covenant shall not prevent oc-
cupancy by domestic servants of
different race domiciled with an
owner or tenant"
Evidence that in addition to dis
eliminating against Negroes as bid
ders in the housing market, FILA
actually serves to prevent the use
of new and open areas to relieve
congestion and provide for their
normal expansion, is cited in a
statement made by an FILA repre-
sentative to Walter White at a
conference last May: "the response
was that this agency did not ap-
prove of loans on development for
occupancy by Negroes in what he
called white neighbOrhOOds' or
vice versa. He stated in effect that
FILA was merely following bust
ness practice.
Declaring that racial references
in the Underwriting Manual add
up to two unacceptable conclusions,
the NAACP Memorandum points
out:
"First, the FILA as matter of
policy is using Government power
to crystalline current residential
segregation patterns and more,
guarantees the extension of such
racial patterns of living, and sec
ondly, fosters the spread and ac-
ceptance of the fallacious concep-
ton that property values or de-
terioration is associated with race
rather than economic factors"
Recommendation
an the light of these factors
which strike at the very roots of
the democratic process and pre-
cludes the full contribution of all
groups to the total culture and
fibre of the nation" the NAACP
urged upon President Roosevelt
the necessity for taking the follow
ing action at once:
1. "To instruct the Commission
er of FILA to revise its policies
and procedures so that the agency
will cease (a) the extension of
racial restrictive covenants in new
areas. (b) Basing the guaranteeing
of loans on the use of such cove
nants.
2. ITO remove all reference to
race from the Underwriting Man
ual and issue instructions to all
personnel that no distinction on
the basis of race shall be made
in considering applicants for FILA
mortgage insurance.
8. ITO accept the responsibility
for encouraging and assisting pri-
vate builders to meet the needs
of the private housing market
among Negroes by gathering and
disseminating accurate informa-
ton on (a) the Negro as a good
financial risk, (b) the Negro as a
| tanant and ovUner in the maintain