Minneapolis spokesman., 1962-07-20
The Economics of the
Housing Segregation
Conspiracy


1t is not often that we get the low-down, right
from the horses mouth, about the exploitation of
Negroes in the housing field. Indeed, even as VIC
TINS, we are usually only partly aware of the con-
spiracy by which we made to pay much more
for shelter than the shelter Is worth by OPEN
market standards.
We are therefore deeply indebted to a Chicago
operator for telling and to the Saturday Evening
POST for publishing, the story in fairly full detail
revealing the parts that many elements of our
economy play in this exploitation.
AS the Chicago operator tells II, the conspiracy
in Chicago at least and we feel sure in many
other cities-begins with the Real Estate Board,
which decreed in 1917 that 1T Is desired In the in
terest of all that each block shall be filled soidly
with Negroes) and that further expansion shall
be confined to contiguous blocks" This rule is en-
forced by the lending institutions and by the notori
GUS Chicago police department which is chiefly
noted for the parttime burglars recently
followed by many of its officers.
The Chicago police reports the author, will
protect Negroes moving into blocks approved for
busting, but give ineffective token protection to
family "leapfrogging" into area not approved
for busting"
In one case policeman guarding a Negroes
new home was seen showing several youths how to
make Molotov-cocktail incendary bomb"
Cooperating in the conspiracy, says Vitchek
the city council and the Mayor, who regularly
table open-occupancy legislation the school board
which Immediately lowers standards Of teaching
and facilities in a busted" area, and the Chicago
newspapers, which confine their reporting of the
problem to the type of stories calculated to
people and arouse their prejudices
Apparently money-lots Of it's at the root of
this conspiracy and the human-relations aspects Of
the matter are merely exploited to make more
money. And it is not only the Negroes who pay.
The white owners Of property in to be bust
ed pay heavily too, unless they are more knowing
and more resourceful than the average. Usually
the whites panic under the propaganda that Negro
neighbors will depreciation of property values
whereas actually, says Vitchek, more than 80 per
cent Of neighborhoods into which Negroes move
enjoy an increase of property values.
Nevertheless the "bockbusting" specuator can
buy the whites property at discounts of S. 900 to
$4,000 on an 900 home and sell to Negro fam
lilies Enthusiastically inflated terms Vitchek says he
sells $4,000 house (he bought it for $140 900 to
$16OOO) contract at $3.50 to 5000 a month on
terms bring in $36, 900 the life of the contract
1t doesn't take much figuring to that at 5000
month the buyer is paying in the neghborhood of
Is per cent interest on the balance he owes after
the down payment. This Is from two to three times
more than anybody should have to pay. Moreover
the seller is making from IT to 20 per cent on his
money!
But what Of the family that must In order to
get shelter, contract to pay 5000 a month? What
are the consequences? Vitchek cites the obvious
ones: (a) they have not enough money for proper
maintenance; (b) they obliged to convert the
property into income producing units; (c) they are
forced to overcrowd (d) the mother is obliged to
take a job, or the father to take a second job or
both, with resulting neglect of and injury to the
children These costs that far exceed in i'm
portance the dollar-and-cents cost of the deal
The Saturday Evening Post expose makes it
perfectly obvious that the pattern of segregation is
costly not only to the Negro, but also to his white
neighbor and especially to the community The
only people who profit the real estate operators
and those who finance them-and their profits are
fabulous. What folly, for a community to let them
exploit ignorance and prejudice in this way!