The Negro in Chicago: A Study of Race Relations and a Race Riot

by Chicago Commission on Race Relations

We want to be fair. We want to do what is right, but these people will have to be more or less pacified. At a conference where their representatives were present I told them we might as well be frank about it, "You people are not admitted to our society," I said. Personally I have no prejudice against them. I have had experience of many years dealing with them, and I'll say this for them: I have never had to foreclose a mortgage on one of them. They have been clean in every way and always prompt in their payments. But, you know, improvements are coming along the lake shore, the Illinois Central, and all that; we can't have these people coming over here. Not one cent has been appropriated by our organization for bombing or anything like that.

They injure our investments. They hurt our values. I couldn't say how many have moved in, but there's at least a hundred blocks that are tainted. We are not making any threat, but we do say that something must be done. Of course, if they come in as tenants, we can handle the situation fairly easily, but when they get a deed, that's another matter.

This fear of Negro neighbors has been used by some real estate agents in promoting speculative schemes. By sending a Negro to inquire about property, they alarm the neighbors so that they will consider offers of purchase much below the normal prices. When the excitement has abated values rise again, and a profit is made.

In the actual depreciation of Hyde Park property there were several factors, usually overlooked, that were in no wise attributable to the presence of Negroes. Some of Chicago's finest residences were located on Michigan Avenue and Grand Boulevard south of Thirty-ninth Street. This was an extension of the early fashionable South Side district and had residences that cost $350,000. But as in the case of the earlier South Side the neighborhood long since had lost some of its first settlers and had begun to decline. The World's Columbian Exposition, held in Chicago in 1893, was near the Hyde Park neighborhood. To accommodate the millions of visitors at the Exposition hotels and apartment houses were built in that district far in excess of the normal need. The apartment houses, moreover, affected the exclusiveness of the residence streets. The buildings were speculations. Large sums were expended in the hope of immediate exceptional profits. Property on Sixty-third Street sold at the Exposition time for three times the price it could command today. This is typical of the speculative values that then prevailed there. After the Exposition the removal of the first residents to the North Side and to suburbs steadily increased.

The abnormal years just preceding the Exposition had brought in thousands of workmen, who were thrown out of work when the Exposition buildings were finished. This and the panic of 1893 made building costs very low and caused further construction of dwellings in that district. Mr. L. M. Smith, a prominent South Side real estate man, described this change at a meeting of the Kenwood and Hyde Park Property Owners' Association:

The condition that existed after the World's Fair, if you will remember, in the material yards and the labor market was this: Every yard was loaded up, and the carpenters and the mechanics that were stranded here after the World's Fair were glad to take jobs as janitors at $25 a month, in order that they could have good warm places for their families, and buildings that were put up three and four years after the Fair, along in 1894, 1895, and 1896, could be built at about 30 per cent cheaper than those that were put up during the World's Fair. The consequences were that you could rent a flat cheaper in a brand-new modern building than you could in a building that was put up during the World's Fair, and as the older buildings could not be rented, the owners finally had to come down in their rent more and more; they got in less and less desirable tenants until finally the whole territory became undesirable.

These first "undesirables" were not Negroes, for Negroes had not then moved across State Street. And there were other causes for the vacancies and removals that admitted Hyde Park's first undesirables beside the overbuilding. One was the proximity of the Stock Yards. Since the South Siders could not have the Stock Yards moved, many of them moved themselves. The railroads along the lake front, with their cinders, smoke, and noise, were also a factor. Another was the creeping in of industrial plants that located in and near the district, frequently in the face of protests. A striking instance of this is the large assembly plant of an automobile company at Thirty-ninth Street and Michigan Avenue. During recent years the automobile industry has practically taken control of Michigan Avenue, once the most beautiful street of the South Side.

The coming of apartment houses and boarding-houses was another signal of declining values. It was shown that for twenty-five years scarcely a new residence had been built on Grand Boulevard, once noted for its handsome residences—due principally to the extensive building of apartment houses there.

Racial prejudice other than that against Negroes has operated in many instances to depress property values. The presence of Jews, Germans, Irish, Italians, and Swedes has at times been objectionable to neighborhoods of Americans or of another race. A leader in the movement to remove Negroes from the Grand Boulevard area gave evidence of this, saying: "I know the Irish killed a certain boulevard. I know the Jews hurt another one, and I know the gambling element hurt another one."

On the South Side the Negroes were preceded by Irish. The original settlers in the area around Thirty-first and Dearborn streets were mainly Irish laborers who worked in the lumber yards and mills, the Stock Yards, and other South Side industries. When they moved westward among their own people, thirty-five years ago, the Negroes took their places.