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206 pages, Kindle Edition
First published January 20, 2014
By 1940, white cartels had succeeded— Chicago displayed an almost perfect segregation index of .95.17Roithmayr goes on to write:
Many homeowners’ associations did not hesitate to use physical violence to advance their cause: they organized their members to fire gunshots into residents’ homes, burn crosses on their lawns, and physically break into and ransack their homes.
Members of homeowners’ associations provided the labor to spread restrictive covenants all over the city. Making sure that an area was covered by covenants was time-consuming and expensive. Someone had to track down owners, gather signatures, compile descriptions of the properties, and file signed documents in the right office. Filers also had to pay drafting and recording fees to put restrictions in deeds, and homeowners’ associations became fund-raising organizations in that regard. 31 By the end of the 1930s restrictive covenants covered close to a third of Chicago properties, and eventually over 80 percent of properties included restrictive covenants.
The associations also provided much of the machinery of retaliatory punishment, namely community shaming and economic harassment. Punishment was usually swift and often fierce. In one amazing example of informal punishment, the Alarm Clock, a community newspaper sponsored by the Park Manor Improvement Association in Chicago, ran the following announcement: “Every case on which we can get facts where whites have sold to negroes [sic] WILL BE PUBLICIZED. Every white person that we know who has sold to negroes [sic] will find the truth of his action no matter where he goes.”
Law appears to have played an important role in racial cartel punishing. Public law, in particular, appears to have been quite useful in policing against cartel members who were tempted to defect or free-ride. To take the most obvious example, white homeowners and developers worked together to enact segregation ordinances in several cities to police the boundaries of white neighborhoods. In the early twentieth century, zoning ordinances like those in Baltimore, Winston-Salem, Atlanta, and Louisville legally restricted areas for either black or white residents or prohibited blacks from moving into blocks where a greater number of whites than blacks resided.The homeowners would also actively report on people who violated the segregation they were trying to impose.
In another section of the paper, the association advertised: “IT HAS BEEN REPORTED: Joseph Biondi of 7020 South Park sold to colored and has moved to 2007 W. 70th Street. He is an electrician for the Pennsylvania Railroad.” 36 Homeowners’ association members socially shamed violators like Mr. Biondi, and often organized economic boycotts of violators’ businesses or professional clientele.Justification for the segregation was sometimes explicitly racist. As Roithmayr tells us:
Racial identity did much of the work to generate guilt and shame for brokers. As one broker put it, “whether I’m a priest, a rabbi or a real estate man, I’m still a member of a race.” Other brokers spoke of their obligations as white real estate brokers.Sometimes the racism was far more subtle. Here Roithmayr quotes one of the realtors who was responsible for not selling or leasing to black people:
No [r]ealtor objects to dealing with Negroes but we have that certain obligation to white people. The value of their property goes down. You want their faith, their good will. You have an obligation to your client, loyalty to your client. You have a moral obligation to your client not to break a block. It’s an unwritten law.In addition to segregation through home ownership, there were poll taxes and literacy tests for voting, which persisted right up until the 1960s. Level playing field, my foot. Also, it is obvious, and something Roithmayr writes about, that the racial wealth gap persists in large part because one of the fastest ways to gain wealth is to inherit it, and black families often never generated the wealth in the first place such that it could be inherited down to the next generation.