Widening the market for Negro loans.—The white people need to know the obstacles in the path of the Negro who wishes to establish a good home for his family and thus improve his citizenship and serve as a good example to others of his race. How to finance Negro home buyers is a large difficulty in solving the Negro housing problem. The Commission held a conference devoted almost entirely to this topic, at which various experts and authorities were consulted. It was sought to ascertain the fundamentals for meeting the needs of the future, assuming that the Negro population in Chicago is likely to continue in normal growth, and that the demand for adequate housing for the Negro population is not likely to lessen for several years. Particular attention was given to the question of how a market might be created for the Negro's loans.
An appraiser for the Fort Dearborn National Bank suggested that a system involving partial payments represented by $25 bonds paying semiannual interest might be helpful. Bonds of such low denominations might, he thought, be purchased by Negroes. By such a system Negroes would learn to invest their money wisely, and by putting money into substantial securities would encourage real estate investments. These securities could be sold by Negro bankers and real estate brokers. But he expressed confidence that not a few white people would buy bonds of that character. They would be based on about 60 per cent of the value of the property.
One real estate broker averred that success in financing Negro home buyers would be contingent upon creating definite districts in any portion of the city where the colored men may find it necessary to live in order to be able to reach their business or their place of employment, districts to be known as their exclusive territory. Then it would be possible to go to a mortgage loan house and present a definite case when a mortgage falls due. Knowing that the property was that of a Negro, and knowing the district, one would have a definite basis for estimating future increase or depreciation of value. It was his opinion that white people would support a market of that nature, because it would not only protect the colored man and the white man alike but all of the property interests of the city. He disclaimed any desire to promote segregation. But he maintained that so long as the races mixed, clashes were inevitable, and that the problem of selling Negro loans, erecting houses, and renewing mortgages would solve itself under this plan, "because white men will be very glad to come to the assistance of colored."
It happens, however, that some subdivisions developed "especially for Negroes" present low standards as well as exploitation. One such subdivision is called Lilydale. An investigator reported on it as follows:
Lilydale is on a flat prairie and was laid out as a subdivision for Negro residents near the corner of Ninety-fifth and State streets several years ago. It is about five blocks square. The developer is a prominent white real estate dealer active in subdivision property generally. Another well-known real estate man, who is also a prominent local politician, is interested in establishing a Negro colony on this property. The latter is agent for a great deal of property on the South Side tenanted by Negroes.
Many Negroes purchased lots in Lilydale at fairly high prices, considering that virtually no improvements had been made to the property. Water has since been laid in some of the streets and some of them are supplied with sewers, but there is no paving and no lighting. Sidewalks are few, mud holes many. Yards, streets, and alleys are unkempt.
Those who promoted the subdivision set up the shells of a few houses, mainly of the bungalow type. Most of these were sold and the inside finish was supplied by the purchasers. Most of these sale houses, though, remain unfinished. The building of houses in Lilydale has been half-hearted, and most of the structures are so poorly constructed that they are conspicuously uncomfortable. Some of these were built by piecemeal with any kind of waste building material that could be gathered. The people in this isolated community apparently are making the best of a hopeless situation. They express a desire to recover the money they have invested. Provisions are obtained from two or three small stores. There is a church in the vicinity, but at the time of the investigation no services were being held in it. The children attend a branch of the Burnside School, which is conveniently located. The teacher is a Negro woman, a graduate of a southern normal school. She reported that there is apparently no prejudice between the white and Negro children; that their only differences are those to which all children fall heir. She regards the Negro colony of Lilydale as a bad mistake and would discourage other Negroes from making purchases there. She regards the investment there as of doubtful value.
There is a car line on Ninety-fifth Street which connects with the industries of South Chicago, where a number of the men of Lilydale are employed.
Adding to the loneliness of the general aspect is the fact that most of the surrounding area is still what is termed "acreage."
Pertinent also is the statement of a man who for years has been interested in the housing difficulties of Negroes.