Financial aspects of Negro housing.—One difficulty of Negroes in handling their own housing problem is the attitude of real estate mortgage and loan concerns with respect to property tenanted or likely to be tenanted by Negroes. Such property is assumed to be a bad risk, and, as a consequence, Negroes are charged more than whites and find it difficult to secure mortgages to assist in purchasing and are greatly handicapped in their efforts to improve property. This situation has its basis in various beliefs concerning Negroes that are often unwarranted. It developed from the inquiries of the Commission that mortgage brokers were influenced to a large degree by opinions of prospective buyers of Negro mortgages, and these prospective buyers in turn were influenced by beliefs for which there was little basis. It was assumed, for example, that Negroes were unreliable in business dealings. Conferences were held by the Commission with the real estate men who handled the greatest portion of Negro property, and many other real estate men were interviewed by the Commission's investigators. Their testimony indicated a buying capacity far beyond what was expected and showed that Negroes had a good record for meeting their obligations. One real estate man who has made a large number of sales to Negroes, stated that in the whole of his experience there had been but two forfeitures, and neither of these was due to negligence or carelessness. An increasing tendency to buy was noted. This was easily explained by other facts gathered by the Commission which indicated that it was easier for Negroes to buy than to rent property, that during the period of the migration hundreds of dwellings were offered for sale to Negroes on long-term payment plans, and that many migrants who had sold their homes, farms, and belongings in the South came to the city prepared to make substantial payments on property. Many Negroes now own houses valued at from $10,000 to $20,000, and in one instance $30,000.
Regarding Negro habits of saving, inquiries were made at all the principal banks of the city's business section and of the neighborhood where Negroes live. Those who were able to check up on Negro depositors reported large sums deposited and invested. One trust and savings bank had Negro deposits of $1,500,000 and another of $1,000,000; one state bank had $650,000 and another $150,000. A large banking institution in the "Loop" district had 4,000 Negro depositors.
Opportunities for using their own capital to relieve their housing problems were limited by lack of opportunities for obtaining business experience. All the concerns questioned regarding the practicability of employing Negroes in such institutions were of the opinion that it would not meet with the favor of the other employees and patrons.
Bombings.—The antagonistic sentiment attributable to the Negro housing situation both incited and condoned the fifty-eight bombings of homes committed between July 1, 1917, and March 1, 1921. In these bombings two persons, a Negro girl and an infant, were killed, many whites and Negroes were injured, and damage done to property amounted to more than $100,000. Negroes who purchased or rented property and whites who sold or leased it were bombed. Thirty-two bombs were exploded within the area bounded by Forty-first and Sixtieth streets, Cottage Grove Avenue and State Street. Although Negroes in some cases were warned of the exact dates on which they were to be bombed, and policemen were sometimes on duty at the places where bombs were exploded, only two arrests were made. One of those arrested was immediately released and the other was never brought to trial. Protests to the authorities from Negroes have been without effect, and a strong feeling of insecurity and resentment has developed among them. It appears from evidence presented to the Commission that bombings have been systematically planned. Many white residents, objecting to the violence suggested and used to keep out Negroes, withdrew from the neighborhood protective organizations, fearing that they might be held responsible for the resulting lawlessness.
These protective associations have denied responsibility and declared that they used only legitimate methods, such as foreclosure of mortgages and refusal to deal with Negroes. During the summer of 1920, they stated, sixty-eight foreclosures were effected.
3. THE NEGRO COMMUNITY
The Negro community in Chicago is virtually a city within a city. It affords opportunity to observe how it is accomplishing its own adjustment to the larger community, and how it attempts to function in its own behalf and for the betterment of the community at large.
Negroes have lived in Chicago since its founding. In fact, the first settler, in 1778, was a Negro, Jean Baptiste Point de Saible. There were Negro property owners at the time of the city's incorporation in 1837. Before the Chicago fire in 1871 they lived near what is now the "Loop" business district, north of Harrison Street on Clark and Dearborn streets and on Lake Street on the West Side. Their homes were burned in 1873, and after that they settled in the territory adjoining what later became the "red light" district near Roosevelt Road.
Organization of the Negro community.—Partly from necessity and partly from choice, Negroes have established their own churches, business enterprises, amusement places, social agencies, and newspapers. The number of their business places increased from about 1,200 in 1919 to about 1,500 in 1920. There are 651 places of business operated by Negroes on South State Street, and 549 on the principal cross streets. The majority of these places are those rendering personal service—barber shops, restaurants, hair-dressing parlors, and undertaking establishments. There are also two banks.
Organizations for social intercourse are numerous, consisting principally of churches, fraternal societies, and social clubs. There are 170 congregations holding services in church edifices and in "store-front" churches. Olivet Baptist Church has more than 10,000 members, the largest Negro church membership in the world. It employs sixteen paid workers, and during the last five years has raised more than $200,000. These churches are the principal center for "face-to-face" relations and aid greatly in the process of adjusting Negroes to civic responsibilities. Forty-nine of these congregations own property valued at fully a million and a half dollars.