2014-10-15

Executive summary

In August 2014, a Ferguson, Missouri, policeman shot and killed an unarmed black teenager. Michael Brown’s death and the resulting protests and racial tension brought considerable attention to that town. Observers who had not been looking closely at our evolving demographic patterns were surprised to see ghetto conditions we had come to associate with inner cities now duplicated in a formerly white suburban community: racially segregated neighborhoods with high poverty and unemployment, poor student achievement in overwhelmingly black schools, oppressive policing, abandoned homes, and community powerlessness.

Media accounts of how Ferguson became Ferguson have typically explained that when African Americans moved to this suburb (and others like it), “white flight” followed, abandoning the town to African Americans who were trying to escape poor schools in the city. The conventional explanation adds that African Americans moved to a few places like Ferguson, not the suburbs generally, because prejudiced real estate agents steered black homebuyers away from other white suburbs. And in any event, those other suburbs were able to preserve their almost entirely white, upper-middle-class environments by enacting zoning rules that required only expensive single family homes, the thinking goes.

No doubt, private prejudice and suburbanites’ desire for homogenous affluent environments contributed to segregation in St. Louis and other metropolitan areas. But these explanations are too partial, and too conveniently excuse public policy from responsibility. A more powerful cause of metropolitan segregation in St. Louis and nationwide has been the explicit intents of federal, state, and local governments to create racially segregated metropolises.

Many of these explicitly segregationist governmental actions ended in the late 20th century but continue to determine today’s racial segregation patterns. In St. Louis these governmental policies included zoning rules that classified white neighborhoods as residential and black neighborhoods as commercial or industrial; segregated public housing projects that replaced integrated low-income areas; federal subsidies for suburban development conditioned on African American exclusion; federal and local requirements for, and enforcement of, property deeds and neighborhood agreements that prohibited resale of white-owned property to, or occupancy by, African Americans; tax favoritism for private institutions that practiced segregation; municipal boundary lines designed to separate black neighborhoods from white ones and to deny necessary services to the former; real estate, insurance, and banking regulators who tolerated and sometimes required racial segregation; and urban renewal plans whose purpose was to shift black populations from central cities like St. Louis to inner-ring suburbs like Ferguson.

Governmental actions in support of a segregated labor market supplemented these racial housing policies and prevented most African Americans from acquiring the economic strength to move to middle-class communities, even if they had been permitted to do so.

White flight certainly existed, and racial prejudice was certainly behind it, but not racial prejudice alone. Government policies turned black neighborhoods into overcrowded slums and white families came to associate African Americans with slum characteristics. White homeowners then fled when African Americans moved nearby, fearing their new neighbors would bring slum conditions with them.

That government, not mere private prejudice, was responsible for segregating greater St. Louis was once conventional informed opinion. A federal appeals court declared 40 years ago that “segregated housing in the St. Louis metropolitan area was … in large measure the result of deliberate racial discrimination in the housing market by the real estate industry and by agencies of the federal, state, and local governments.” Similar observations accurately describe every other large metropolitan area. This history, however, has now largely been forgotten.

When we blame private prejudice, suburban snobbishness, and black poverty for contemporary segregation, we not only whitewash our own history but avoid considering whether new policies might instead promote an integrated community. The federal government’s response to the Ferguson “Troubles” has been to treat the town as an isolated embarrassment, not a reflection of the nation in which it is embedded. The Department of Justice is investigating the killing of teenager Michael Brown and the practices of the Ferguson police department, but aside from the president’s concern that perhaps we have militarized all police forces too much, no broader inferences from the events of August 2014 are being drawn by policymakers.

The conditions that created Ferguson cannot be addressed without remedying a century of public policies that segregated our metropolitan landscape. Remedies are unlikely if we fail to recognize these policies and how their effects have endured.

How Ferguson Became Ferguson

In 1968, Larman Williams was one of the first African Americans to buy a home in the white suburb of Ferguson, Missouri. It wasn’t easy – when he first went to see the house, the real estate agent wouldn’t show it to him. Atypically, Mr. Williams belonged to a church with a white pastor, who contacted the agent on Williams’s behalf, only to be told that neighbors objected to sales to Negroes. The pastor then gathered the owner and his neighbors for a prayer meeting, after which the owner told the agent he was no longer opposed to a black buyer.

Williams had been living in the St. Louis ghetto and working as an assistant principal of a school in Wellston, an all-black St. Louis suburb.1 His wife, Geraldine, was a teacher in a Missouri state special education school. Together, they could afford to live in middle-class Ferguson and hoped to protect their three daughters from the violence of their St. Louis neighborhood. They expected that their children would get better educations in Ferguson than in Wellston because Ferguson could afford to hire more skilled teachers, have a higher teacher-pupil ratio, and have extra resources to invest in specialists and academic enrichment programs.

Larman Williams chose Ferguson because he was vaguely familiar with the town. Ferguson adjoined the very poor, all-black suburb of Kinloch where Williams had once lived (California Congresswoman Maxine Waters and the comedian and activist Dick Gregory grew up there). There was a tiny black section of Ferguson, geographically isolated from the main town, but it was the white Ferguson that Williams had come to admire, although he had been permitted to enter only during daytime. Until the mid-1960s, Ferguson was a “sundown town” from which African Americans were banned after dark. Ferguson had blocked off the main road from Kinloch with a chain and construction materials but kept a second road open during the day so housekeepers and nannies could get from Kinloch to jobs in Ferguson.2

Kinloch and the middle-class white neighborhoods that also adjoin Ferguson were once indistinguishably part of unincorporated St. Louis County, but in the late 1930s, the white neighborhoods formed the city of Berkeley to ensure their schools would remain separate from Kinloch’s. With a much smaller tax base, the Kinloch schools were far inferior to those in Berkeley and Ferguson, and Kinloch took on even more of the characteristics of a dilapidated ghetto. This arrangement persisted until 1975 – several years after the Williams family moved into their white Ferguson neighborhood – when federal courts ordered Berkeley, Ferguson, and other white towns to integrate their schools into a common district with Kinloch.3

Other African Americans followed the Williams family by purchasing homes in Ferguson, but the African American community grew slowly. In 1970, shortly after the family moved to Ferguson, the city’s population was less than 1 percent black. But it had some multifamily buildings that attracted renters from St. Louis. Then, as public housing in St. Louis was demolished in the 1970s, the St. Louis Housing Authority gave relocation assistance to displaced families. It is likely that some of those families moved to Ferguson and other inner-ring suburbs. By 1980, Ferguson was 14 percent black; by 1990, 25 percent; by 2000, 52 percent; and by 2010, 67 percent. Other northern and northwestern suburbs near St. Louis were similarly experiencing an increasing share of black residents during this period. Meanwhile, suburbs beyond the first ring to the south and west of St. Louis have remained almost all white, while the white population share of the city of St. Louis itself has been stable and has even started to grow. St. Louis’s downtown area and neighborhoods west of it to the city border went from 36 percent white in 2000 to 44 percent white in 2010. Within that area, whites are now a solid majority in some neighborhoods for the first time in decades.4

The following pages tell the story of how St. Louis became such a segregated metropolis, where racial boundaries continually change but communities’ racial homogeneity persists. Neighborhoods that appear to be integrated are almost always those in transition, either from mostly white to mostly black (like Ferguson), or from mostly black to increasingly white (like St. Louis’s gentrifying neighborhoods). Such population shifts in St. Louis and other metropolitan areas maintain segregation patterns established by public policy a century ago. Whereas 20th century segregation took the form of black central cities surrounded by white suburbs, 21st century segregation is in transition – to whiter central cities with adjoining black suburbs, while farther out, white suburbs encircle the black ones.

I tell this story with some hesitation. I do not mean to imply that there is anything special about racial history in Ferguson, St. Louis, or the St. Louis metropolitan area. Every policy and practice segregating St. Louis over the last century was duplicated in almost every metropolis nationwide. Yet this story of racial isolation and disadvantage, enforced by federal, state, and local policies, many of which are no longer practiced, is central to an appreciation of what occurred in Ferguson in August 2014 when African American protests turned violent after police shot and killed an unarmed black 18-year-old. Policies that are no longer in effect and seemingly have been reformed still cast a long shadow.

Larman and Geraldine Williams told their story at a 1970 hearing of the United States Commission on Civil Rights.5 They were accompanied to the witness table by another middle-class black integration pioneer, Adel Allen, an engineer who came to St. Louis in 1962 to work at the McDonnell Space Center. Mr. Allen was ready to quit and return home to Wichita, Kansas, after no realtor would sell him a suburban home. He was unwilling to live in a small apartment in the overcrowded St. Louis ghetto – apparently his only alternative.

Allen finally succeeded in getting a white friend to make a “straw purchase” (where the true buyer was hidden) of a home in Kirkwood, another nearly all-white St. Louis suburb; a second friend gave him $5,000 towards the $16,000 purchase price. Allen didn’t say, but the friend’s funds were probably needed because the Federal Housing Administration would not insure mortgages for African Americans in Kirkwood, and no bank would issue them. Allen’s income at the time was higher than the incomes of the 30 white homeowners on his block – he alone had a college degree – which already had one previously settled black homeowner. Once Adel Allen moved in, “for sale” signs sprung up on neighboring lawns; eight years later, when Allen testified before the Civil Rights Commission, the racial ratio on his block had reversed, with 30 black and two white homeowners.

Adel Allen described life in Kirkwood when he first moved there in 1962:

I don’t know if [the police] were protecting me or protecting someone from me. We had patrols on the hour. Our streets were swept neatly, monthly. Our trash pickups were regular and handled with dignity. The street lighting was always up to par. All of the services were – the streets were cleaned when there was snow, et cetera.

But things had changed by 1970, when Allen’s neighborhood had become an African American outpost in an overwhelmingly (93 percent) white South St. Louis County. Allen testified:

We now have the most inadequate lighting in the city…. Now we have the people from the other sections of town that now leave their cars parked on our streets when they want to abandon them.… What they are making now is a ghetto in the process. The buildings are maintained better than they were when they were white but the city services are much less. Other sections of the city I believe are being forced to take sidewalks, for example. We are begging for sidewalks. Other portions of the city are being forced to get curbs. We can’t even get them to come out and look at the curbs.

The commission’s general counsel then asked Adel Allen if he had ever been stopped by the local police. Allen responded,

Yes. I don’t think there’s a black man in South St. Louis County that hasn’t been stopped at least once if he’s been here more than 2 weeks.… There’s an almost automatic suspicion that goes along with being black.… There is an obvious attempt toward emasculation of the black man. I’ve been stopped, searched, and I don’t mean searched in the milder sense, I mean laying across the hood of a car. And then told after they found nothing that my tail light bulb was burned out, or I should have dimmed my lights, something like that.6


St. Louis and selected suburbs.

Nearly three years before Larman Williams and Adel Allen gave their accounts, African Americans had rioted in scores of cities. President Lyndon Johnson then asked a group of prominent Americans, headed by Illinois Governor Otto Kerner, to investigate the riots’ causes. The Kerner Commission concluded that conditions described by the Williamses and Adel Allen were typical nationwide: discriminatory provision of municipal services, police practices reflecting “attempts toward emasculation of the black man,” housing discrimination, and much more. Kerner and his colleagues concluded that the nation was “moving toward two societies, one black, one white – separate and unequal.”

The August “Troubles” in Ferguson suggest that less has changed since 1968 than many Americans think. Yet the government’s response has been to examine Ferguson as an isolated embarrassment, not a reflection of the nation in which it is embedded. The Department of Justice is conducting civil rights investigations into the death of Michael Brown and into the racial practices of Ferguson’s police department. Attorney General Eric Holder was reported to have said that anecdotes he heard on a visit to Ferguson influenced his decision to open the more general investigation.7 But aside from reports that the president is considering whether the federal government has armed local police forces too heavily, there has been no suggestion that the administration regards the recent events in Ferguson as reflecting anything broader than unique problems of that community or of the St. Louis metropolitan area.

Federal, state, and local policy segregated Ferguson and St. Louis

Efforts of the public to understand the Troubles in Ferguson after the shooting of unarmed black teenager Michael Brown have also been limited. Media reports have explained that suburbs once barred African Americans with private agreements among white homeowners (restrictive covenants), with discriminatory practices of private real estate agents, and with racially neutral zoning rules that restricted outer-ring suburbs to the affluent. Inner-ring suburbs, according to these reports, have flipped from white to black because of “white flight.” Modern segregation, in other words, is attributable to private prejudices of white homeowners who abandoned neighborhoods when blacks arrived, and to the inability of African Americans to afford communities restricted to single-family homes on large lots.8

No doubt, private prejudice and suburbanites’ desire for homogenous middle-class environments contributed to segregation in St. Louis and other metropolitan areas. But these explanations are too partial, and too conveniently excuse public policy from responsibility. A more powerful cause of metropolitan segregation nationwide was the explicit intents of federal, state, and local governments to create racially segregated metropolises. In the case of St. Louis, these intents were expressed in mutually reinforcing federal, state, and local policies that included:

Racially explicit zoning decisions that designated specific ghetto boundaries within the city of St. Louis, turning black neighborhoods into slums;

Segregated public housing projects that separated blacks and whites who had previously lived in more integrated urban areas;

Restrictive covenants, excluding African Americans from white areas, that began as private agreements but then were adopted as explicit public policy;

Government subsidies for white suburban developments that excluded blacks, depriving African Americans of the 20th century home-equity driven wealth gains reaped by whites;

Denial of adequate municipal services in ghettos, leading to slum conditions in black neighborhoods that reinforced whites’ conviction that “blacks” and “slums” were synonymous;

Boundary, annexation, spot zoning, and municipal incorporation policies designed to remove African Americans from residence near white neighborhoods, or to prevent them from establishing residence near white neighborhoods;

Urban renewal and redevelopment programs to shift ghetto locations, in the guise of cleaning up those slums;

Government regulators’ tacit (and sometimes open) support for real estate and financial sector policies and practices that explicitly promoted residential segregation;

A government-sponsored dual labor market that made suburban housing less affordable for African Americans by preventing them from accumulating wealth needed to participate in homeownership.

That governmental actions, not mere private prejudice, was responsible for segregating greater St. Louis was once conventional informed opinion. In 1974, a three-judge panel of the federal Eighth Circuit Court of Appeals concluded that “segregated housing in the St. Louis metropolitan area was … in large measure the result of deliberate racial discrimination in the housing market by the real estate industry and by agencies of the federal, state, and local governments.” Similar observations accurately describe every other large metropolitan area; in St. Louis, the Department of Justice stipulated to this truth but took no action in response. In 1980, a federal court order included an instruction for the state, county, and city governments to devise plans to integrate schools by integrating housing. Public officials ignored this aspect of the order, devising only a voluntary busing plan to integrate schools, but no programs to combat housing segregation.9

Although policies to impose segregation are no longer explicit, their effects endure in neighborhoods segregated by race in the North, South, East, and West. When we blame private prejudice and snobbishness for contemporary segregation, we not only whitewash our own history, but avoid considering whether new policies might instead promote an integrated community.

Examining the distinct public policies that have enforced segregation

From the Civil War to the early 20th century, the black population of St. Louis was small, but somewhat integrated with white low-wage workers and their families, including European immigrants. There were blocks with greater or lesser concentrations of African American families, but neighborhoods as a whole were integrated; blocks with greater concentrations of African Americans were interspersed with other blocks concentrating various white immigrant and ethnic groups.10

But then, as elsewhere in the nation, segregationist sentiment and activity increased nationwide, reflected by the presidential election of the Virginia native, New Jersey Governor Woodrow Wilson, who succeeded the more moderate (on racial matters) William Howard Taft. Wilson not only took steps to segregate the federal civil service, but set a tone that encouraged anti-black activities across the land.

Racial zoning

In 1916, the St. Louis Real Estate Exchange, the city’s Realtors’ association, sponsored an organization to draft and campaign for a ballot referendum to prohibit blacks from moving onto blocks where at least 75 percent of existing residents were white (and whites from moving onto blocks where at least 75 percent were black). The referendum passed, but before it could have much effect, the U.S. Supreme Court overturned a similar ordinance in Louisville, Kentucky. The court’s 1917 decision didn’t rely primarily on a claim that a racial zoning ordinance violated equal protection principles, but rather that it infringed on property owners’ rights to sell to whomever they wished.11


A 1916 leaflet promotes a voter referendum to segregate St. Louis. It passed.
Photo reproduced with permission from the Missouri History Museum Library and Research Center

Some other cities, mostly in the South, ignored the court’s ruling and continued to enforce racial zoning ordinances, but St. Louis, like many others, took a different approach. Before the court’s ruling, it had begun to develop zoning rules that defined boundaries of industrial, commercial, multifamily residential, and single-family residential property. It developed these new rules with racial purposes unhidden, although race was not written into the text of the zoning rules themselves.

St. Louis appointed its first City Plan Commission in 1911 and hired Harland Bartholomew as its full-time planning engineer in 1916. His assignment was to supervise a survey of every building in the city to determine into which of the property types it fell and then to propose rules and maps to prevent future multifamily, industrial, or commercial development from impinging on single-family neighborhoods. A neighborhood filled with single-family homes whose deeds prohibited black residence or prohibited resale to blacks was almost certain to receive a “first residential” zoning designation that prohibited future construction of multifamily, commercial, or industrial buildings.

According to Bartholomew, a St. Louis zoning goal was to “preserv[e] the more desirable residential neighborhoods,” and to prevent movement into “finer residential districts … by colored people.” He noted that without a previous zoning ordinance, such neighborhoods have become run down, “where values have depreciated, homes are either vacant or occupied by colored people.” The survey Bartholomew supervised prior to drafting the new zoning rules collected, among other information, the race of occupants of each residential building in the city, and Bartholomew estimated the future direction of African American population expansion so that the zoning ordinance could attempt to direct and circumscribe it. The Bartholomew Commission’s first zoning ordinance was adopted in 1919, two years after the Supreme Court banned explicit racial zoning, but the St. Louis ordinance, with no explicit mention of race, was apparently in compliance. The new ordinance designated zones for future industrial development if they were in or adjacent to neighborhoods with substantial black populations.

Once the first zoning ordinance was adopted, City Plan Commission meetings were consumed with requests for variances. Race was an important consideration. One meeting in 1919 was devoted to a proposal to reclassify a single-family property from first residential to commercial, because the area to the south had been “invaded by negroes.” Bartholomew persuaded the commission to deny the variance because, he said, keeping the first residential designation would preserve homes in the area as unaffordable to blacks, and thus stop the encroachment. On other occasions the commission changed an area’s zoning from residential to industrial if black families began to move into it. In 1927, violating its normal policy, the commission placed a park and playground in an industrial, not residential area, in hopes that this placement would draw black families to seek housing nearby.

Similar policy continued through the middle of the 20th century. In a 1942 City Plan Commission meeting, commissioners explained that they were zoning an area in a commercial strip as second residential (multifamily) because it could then “develop into a favorable dwelling district for Colored people.” In 1948, commissioners explained that they were designating a U-shaped industrial zone to create a buffer between black residences inside the U and white residences outside it.12

In addition to promoting segregation, zoning decisions contributed to degrading St. Louis’s African American neighborhoods into slums. Not only were these neighborhoods zoned to permit industry, even polluting industry, but taverns, liquor stores, nightclubs, and houses of prostitution were permitted to locate in African American neighborhoods, but prohibited as violations of the zoning ordinance in residential districts elsewhere. Houses in residential districts could not legally be subdivided, but those in industrial districts could be, and with African Americans restricted from all but a few neighborhoods, rooming houses sprung up to accommodate the overcrowded black population. Once the Federal Housing Administration (FHA) was established during the New Deal, these zoning practices rendered African American homes ineligible for mortgage guarantees, because FHA underwriting principles considered “inharmonious uses” of neighboring properties to threaten the security of property value. But such homes were eligible a quarter century later for slum clearance with urban renewal funds, zoning practices having made them unfit for habitation.13

Urban zoning set patterns for subsequent zoning in the suburbs. Jurisdictions farthest from the city of St. Louis typically zoned for single-family homes with large lots only. Communities closer to the city were more likely to have zones for multifamily residences. Some inner-ring suburbs, like Ferguson, were initially zoned only for single-family homes, though without requirements for large minimum lot sizes that would make them unaffordable to working and lower-middle-class families. During the World War II housing shortage, Ferguson and towns like it allowed some multifamily construction, although when Ferguson revised its zoning ordinance a decade after the war, it eliminated any provision for multifamily units. Other inner-ring suburbs, however, increasingly permitted apartment development because of the increased tax revenue the higher assessment on such properties would bring.14

Suburban zoning rules were on their face race-neutral, and the communities using them did not have nationally prominent planners like Harland Bartholomew to boast about their racial implications. In a few cases, scholars have unearthed suburban planning documents with similarities to Bartholomew’s public pronouncements about race. In 1940, for example, officials in Kirkwood (the town to which Adel Allen later moved) prepared a document referring to “several scattered Negro developments” and recommending that this be “corrected” in the city plan. Urging that ways be found to shift black families back to the city of St. Louis, the planning document stated it was “much more desirable for all of the colored families to be grouped in one major section where they could be provided with their own school and recreational facilities, churches, and stores.”15

A 1963 planning document in Webster Groves, a suburb between the city of St. Louis and Kirkwood, identified commercial and multifamily zones as “100% Negro or very close” and took steps to prevent enlargement of a “developing ghetto” across a rail bed it termed the “Great Divide.”16 Such documents were exceptions to suburban zoning plans that were apparently racially innocuous. But it is difficult to consider St. Louis County’s exclusive suburban zoning as merely an expression of economic snobbishness if we keep in mind the racial motivation behind the earliest urban zoning policies, both in St. Louis and elsewhere.

Segregated public housing

Zoning rules in St. Louis could affect future development, but had little impact on previously integrated neighborhoods. To eliminate these, federal and city officials employed early public housing development to increase and solidify the city’s segregation.

At the beginning of the New Deal, Congress adopted a public housing program to simultaneously put Americans back to work and address a national housing shortage. Part of the National Industrial Recovery Act, the Public Works Administration (PWA) housing efforts were headed by a confidante of President Franklin D. Roosevelt, Harold Ickes, who specified a “neighborhood composition rule”: Public housing projects could not alter the racial composition of neighborhoods in which they were located. Projects located in white areas could house only white tenants, those in black areas could house only black tenants, and projects in integrated neighborhoods could be integrated. Going further, the PWA segregated projects even in neighborhoods where there was no such previous pattern. As Roosevelt’s biographer James MacGregor Burns concluded, cities “in which prewar segregation was virtually unknown … received segregated housing, starting a new ‘local custom’ still in force many years later.” In its segregation policy, the PWA was consistent with other New Deal agencies. The Works Progress Administration, for example, segregated its work crews in St. Louis and elsewhere in the nation.17


Members of a segregated black Works Progress Administration work unit in St. Louis pose for the camera.
Photo reproduced with permission from the Missouri History Museum Library and Research Center

At first, the PWA attempted to enlist private developers to build federally subsidized but privately owned nonprofit housing. It was not successful because few builders could be induced to provide housing for low-income families, even with subsidies. Only seven of these “limited dividend” projects were built nationwide, one of which, Neighborhood Gardens, was placed in St. Louis. Each of the seven was reserved for whites only, and Neighborhood Gardens was no exception, designed to provide housing for white workers who could walk from the project to jobs in the downtown garment district.18

Following the failure of nonprofit subsidies to spur a housing boom, the PWA changed its approach to publicly financed and publicly owned housing. In 1934, the city of St. Louis proposed to raze the DeSoto-Carr area, a racially integrated low-income tenement neighborhood on the near-north side whose population was about 55 percent white and 45 percent black. The city said it would construct in DeSoto-Carr a whites-only low-rise project for two-parent families with steady employment. When the PWA objected to the city’s failure to accommodate African Americans, St. Louis proposed an additional blacks-only project removed from the white one, but also in the previously integrated area. This met the federal government’s conditions, insisted upon by liberals and civil rights leaders, for nondiscriminatory funding.19

Bureaucratic obstacles delayed construction until 1940. During the interim, public housing needs grew as thousands of rural black and white workers flocked from the Ozarks to take jobs in St. Louis’s rapidly growing armaments industry. War workers packed themselves into already crowded tenements in central St. Louis, subdividing apartments, converting them to rooming houses, or simply taking in boarders. In some cases, the federal government placed segregated Quonset huts near defense plants as dormitories for workers. The apartment vacancy rate in St. Louis during World War II fell below one percent.20

The city revised its public housing plans and designated the DeSoto-Carr project (renamed Carr Square Village) for African Americans only, with the separate project designated for whites (called Clinton-Peabody) moved south of downtown. The area cleared for Clinton-Peabody was also integrated, but with fewer African Americans than the DeSoto-Carr area had contained. The segregated projects were opened in 1942 with initial preferences for war workers and then, later, for veterans.21

With a continuing critical nationwide civilian housing shortage after World War II, newly elected President Harry Truman proposed a massive public housing effort. Republican opponents of the bill proposed a “poison pill” amendment to prohibit racial discrimination in public housing. They knew that if their amendment were adopted, southern Democrats who otherwise supported public housing would kill the legislation. Liberal proponents, led by Illinois Senator Paul Douglas, had to choose between enacting a segregated public housing program or no program at all. On the Senate floor, Douglas said: “I should like to point out to my Negro friends what a large amount of housing they will get under this act.… I am ready to appeal to history and to time that it is in the best interests of the Negro race that we carry through the housing program as planned, rather than put in the bill an amendment which will inevitably defeat it.”

The Senate and House each then considered and defeated the poison pills and the 1949 Housing Act, with its provisions for federal finance of public housing, was adopted. It permitted local authorities to design separate projects for blacks and whites, or to segregate blacks and whites within projects. The federal government did not require segregation, but neither did it require integrated projects. It financed each, respecting local policy.22

St. Louis then applied for and received federal funds for segregated public housing under the new program. In 1952, a second project for whites only, the John J. Cochran Garden Apartments, was opened on land that, like Carr Square and Peabody-Clinton, had been cleared of both black and white residences.23

As Joseph Heathcott, a scholar of the St. Louis urban landscape, has observed (referring to Carr Square Village and Clinton-Peabody), “The City Plan Commission, the St. Louis Housing Authority, the mayor’s office, and the Board of Aldermen conspired to transform two multiethnic mixed-race neighborhoods – one on the north side and one on the south side – into racially homogenous projects.”24

Several African American World War II veterans (with other low-wage workers) sued the St. Louis Housing Authority when they were denied placements solely because of their race in the more desirable whites-only Clinton-Peabody and Cochran Garden apartments. In 1955, a federal judge concluded that the conspiracy to segregate public housing extended beyond these local officials: “The limitation of the Clinton-Peabody Terrace Project and the John J. Cochran Project to white occupancy was approved by the [federal government’s] Public Housing Administration, conditioned upon the provision of [separate] facilities for non-white occupancy.” The judge ordered the St. Louis Housing Authority to cease segregating its projects by race and to admit qualified black families to the two white projects.25 But the ruling came too late. By the 1950s, federal policy to move working-class whites to homeownership in the suburbs was in full swing. Clinton-Peabody and Cochran Gardens gradually increased their share of African Americans as white residents departed, many with mortgages guaranteed by the FHA or Veterans Administration (VA), for suburbs from which blacks were excluded.

Explosives bring down the Pruitt-Igoe public housing towers in St. Louis in 1972. Some former residents got housing assistance to settle in Ferguson and other inner-ring suburbs.
Photo obtained from Wikipedia Commons

In the early 1950s, St. Louis began construction of the Pruitt-Igoe towers and other high-rises to house the African American poor. Pruitt had been intended for blacks and Igoe for whites, but by the time the projects opened in 1955–56, few whites were still interested in urban public housing; there were so many inexpensive options for them in south St. Louis and in the suburbs. Igoe then filled with black families as well.26

By the 1960s, Pruitt-Igoe became a national symbol of dysfunctional public housing, high-rise towers packed with welfare-dependent families, frequently headed by single mothers. Youth gang activity was pervasive. The Housing Authority’s neglect of maintenance and facilities exacerbated matters. The Pruitt-Igoe vertical ghettos discredited the entire national public housing program, giving the lie to Senator Douglas’s promise that it would be in the “best interests of the Negro race that we carry through” with a segregated housing program. The combination of deteriorating social conditions and public disinvestment made life in the projects so untenable that the federal government evicted all residents and dynamited the 33 towers, beginning in 1972.27

Restrictive covenants

When St. Louis leaders developed zoning rules to control black population movement in the second decade of the 20th century, private real estate agents and individual white homeowners began to attach clauses to property deeds and adopt neighborhood contracts to prevent African Americans from moving into their environs. Called “restrictive covenants,” the first in St. Louis was recorded in 1910.28 Later, covenants were promoted nationwide by the National Association of Real Estate Boards, which provided model language. In St. Louis, the Real Estate Exchange provided a “Uniform Restriction Agreement” for neighborhood associations to use. By 1945, about 300 neighborhood covenants were in force.29

The legal instruments took two forms. In one, homebuilders attached clauses to property deeds committing the first and subsequent buyers of a house never to sell that property to an African American or permit the property to be occupied by one. Exceptions were typically made for live-in domestic servants. In the other, associations of homeowners in particular neighborhoods signed mutual agreements that no member of the association would sell to, or permit occupancy by, an African American – again, with a similar exception. The second form was easier to enforce, because any signatory had standing to compel compliance. The Real Estate Exchange itself was typically a signatory, and it frequently initiated litigation to prevent a breach.

Typical restrictive covenant language in this 1923 document covers streets a half mile from the St. Louis house whose sale Shelley v. Kraemer upheld. The streets have since been renamed Dick Gregory Place and Dr. Martin Luther King Drive.
Photo reproduced with permission from the Colin Gordon, University of Iowa

Courts in Missouri and elsewhere supported this segregation by consistently ordering the cancellation of sales made in violation of such agreements. But if initial sales in an all-white neighborhood proceeded without challenge, courts frequently refused to prohibit subsequent sales because the all-white character of the neighborhood had already been lost, and the intent of an association to preserve segregation could no longer be fulfilled by enforcing the covenant. This legal theory required the Real Estate Exchange and other white activists to be perfectly vigilant, something rarely achieved. Once sales to African Americans proceeded without challenge, neighborhoods bordering overcrowded ghetto areas quickly flipped from white to black.

Public policy was deeply entangled in restrictive covenants, and not only because Harland Bartholomew’s City Plan Commission considered their existence to be a factor supporting a neighborhood’s first-residential classification.30 The federal government also became entangled in racial covenants because so many of them were promoted by institutions subsidized by the government with tax exemptions and tax deductibility.

As the U.S. Supreme Court found in an unrelated case in 1983, the Internal Revenue Service has the power to revoke the tax favoritism of institutions practicing racial discrimination. Although that case involved a seemingly tangential aspect of the institution’s mission and practice (Bob Jones University banned interracial dating by its students), the court found this sufficient to justify the IRS revocation. The court did not reach the question of whether the IRS is compelled by the Constitution and law to withhold tax exemption from institutions that are heavily involved in promoting racial discrimination, but such an interpretation seems to follow. The court observed that the Internal Revenue Code intends that “an institution seeking tax-exempt status must serve a public purpose and not be contrary to established public policy.”31 IRS regulations specifically authorize charitable deductions for organizations that “eliminate prejudice and discrimination” and “defend human and civil rights secured by law.”32

Inasmuch as the right of African Americans to purchase residential property without discrimination had been secured by law since 1866,33 it follows that granting tax-exempt status to churches or other institutions promoting restrictive covenants constituted improper federal support, as it violated established public policy. The government, however, never questioned the prominent involvement of tax-exempt churches, hospitals, and universities in enforcing segregation. If church leaders had to choose between their tax-exemptions and racial exclusion, there might have been many fewer covenants blanketing white St. Louis and other cities.

Although the Supreme Court had upheld the legality of covenants themselves in 1926, it found in 1948 that state courts could not enforce them without violating the 14th Amendment to the Constitution. The decision came in Detroit and St. Louis cases (although many similar cases had been pursued elsewhere, in Los Angeles with the greatest frequency) and the decision has come to be known by the St. Louis case, Shelley v. Kraemer.34 And this case was particularly interesting because of the role played by tax-exempt institutions.

The case arose from the objections of a white St. Louis homeowner, Fern Kraemer, to the purchase of a home near hers by the African American Shelley family. The area had been covered by a restrictive covenant organized by a neighborhood group, the Marcus Avenue Improvement Association. The association, including 2,000 property owners, was sponsored by the Cote Brilliante Presbyterian Church, whose trustees provided funds from the church treasury to finance Ms. Kraemer’s lawsuit to enforce the covenant. Another church, the Waggoner Place Methodist Episcopal Church South, was also a signatory to the covenant; its pastor had defended the covenant in court in an earlier (1942) case.35

Restrictive covenants also became an expression of public policy when, in the early New Deal, the Federal Housing Administration subsidized suburbanization and made the existence of racial covenants an important condition of mortgage insurance. Beginning in 1934, and continuing thereafter, FHA underwriting manuals stated that “protection against some adverse influences is obtained by the proper zoning and deed restrictions that prevail in a neighborhood” and elaborated that “the more important among the adverse influential factors are the ingress of undesirable racial or nationality groups.”36 As public housing helped define the north side of St. Louis as black, and the south side as white, this FHA policy began a half-century of federal government effort to move St. Louis’s white families to newly growing exclusively white suburbs.

Subsidization of suburban development for whites only

The FHA not only insured individual mortgages of white homeowners. Perhaps even more important, it effectively financed the construction of entire segregated subdivisions by making advance commitments to builders who met FHA construction standards for materials used, lot size, setback from street, and location in a properly zoned neighborhood that prohibited industry or commercial development threatening home values. Aware that the Supreme Court had prohibited explicit racial zoning, the FHA took the position that the presence of African Americans in nearby neighborhoods was nonetheless a consideration that could threaten FHA insurability and that racial exclusion in the insured subdivision itself could be accomplished if deeds in the subdivision included mutually obligatory clauses prohibiting African Americans from residence.37

Subdivision developers who obtained such commitments could use them to persuade bankers to issue low-interest construction loans. Developers could then also assure potential (white) buyers that their homes were FHA-approved and that FHA (and later VA) mortgages would be available at low interest rates and with no or limited down payments. The FHA’s policy was to prefer homebuilding priced for lower-middle- to middle-class buyers.38

At its peak in 1943 when civilian construction was limited, the FHA financed 80 percent of all private home construction nationwide. During the postwar period, it dropped to one-third.39 But even when subdivisions were not built with advance FHA commitments, individual homebuyers needed access to FHA or VA insured mortgages, so similar standards for new construction pertained. Subdivisions throughout St. Louis County were developed in this way, with FHA advance commitments for the builders and a resulting whites-only sale policy.

The FHA’s suburban whites-only policy continued through the postwar housing boom that lasted through the mid-1960s. In 1947, the FHA sanitized its manual, removing literal race references but still demanding “compatibility among neighborhood occupants” for mortgage guarantees. “Neighborhoods constituted of families that are congenial,” the FHA manual explained, “…generally exhibit strong appeal and stability.”40 This very slightly sanitized language suggested no change in policy, and the FHA continued to finance builders with open policies of racial exclusion for another 15 years.

These practices of the FHA were once well known, but have now mostly been forgotten, although their effects persist. In 1959, the United States Commission on Civil Rights’ annual report summarized how the suburban landscape, by then firmly established, was created:

Nonwhite home buyers and renters have not, however enjoyed the benefits of FHA mortgage insurance to the same extent as whites. According to testimony given before this Commission, less than 2 percent of the total number of new homes insured by FHA since 1946 have been available to minorities. Most of this housing has been all-Negro developments in the South.…

Although the relatively low participation [of] nonwhites has in part been due to their lower incomes, FHA bears some responsibility. Of great significance in this respect are FHA’s policies with regard to the discriminatory practices toward Negroes of real estate boards, home builders and lending institutions.

For the first 16 years of its life, FHA itself actually encouraged the use of racially restrictive covenants. It not only acquiesced in their use but in fact contributed to perfecting them. The 1938 FHA Underwriting Manual, which contained the criteria used in determining eligibility for receipt of FHA benefits, warned against insuring property that would be used by “inharmonious racial groups,” and declared that for stability of a neighborhood, “properties shall continue to be occupied by the same social and racial classes.” The Manual contained a model restrictive covenant which FHA strongly recommended for inclusion in all sales contracts. Furthermore, FHA instructed land valuators that among their considerations should be a determination as to whether “effective restrictive covenants are recorded against the entire tract, since these provide the surest protection against undesirable encroachment and inharmonious use. To be most effective, deed restrictions should be imposed upon all land in the immediate environment of the subject location.” [Footnote: …Many housing experts believe that while FHA did not invent the restrictive covenant its official sanction played a large role in the spread of racial restrictions, particularly in newly developed areas.]

FHA continued this practice of encouraging racially restricted housing developments until 1950, despite mounting pressure from civic organizations, State and local antidiscrimination commissions and other groups to abandon the practice. The only change made by FHA during this period was a softening of the wording in the Underwriting Manual in 1947. This change in language amounted to no real change in policy, however….

While the unenforceability of racial restrictive covenants [following the Supreme Court’s 1948 Shelley ruling] has undoubtedly increased Negro participation in FHA’s insurance programs by making available to them additional existing housing, it has done little in the way of new housing or of apartment units in suburban and outlying areas. There the discriminatory practices of the real estate business, home building industry, and financial institutions continue for the most part unabated. FHA insurance remains available to builders with known policies of discrimination. With the help of FHA financing, all-white suburbs have been constructed in recent years around almost every large city. Huge FHA-insured projects that become whole new residential towns have been built with an acknowledged policy of excluding Negroes.41

1952 advertisements for Ferguson and Kirkwood subdivisions assure buyers that they are “FHA Financed” or “FHA Approved” (and thus for whites only).
Photo reproduced with permission from the Missouri History Museum Library and Research Center

In the St. Louis metropolitan area as well as elsewhere, the FHA and VA continued to promote racial restrictions in their loan insurance programs until the 1960s.42

The FHA seal of approval guaranteed that a subdivision was for whites only. Advertisements for suburban subdivisions like those from 1952 featured here were commonplace in St. Louis (and nationwide). The two advertisements were among those collected in a booklet for home seekers, published and distributed by the Home Builders Association of Greater St. Louis. By marketing an “FHA Financed” subdivision in Ferguson, and an “FHA approved” Peaseway subdivision in Kirkwood, these ads signal the development’s whites-only character. Other advertisements in the booklet tout a “Veterans’ Preference” subdivision called Woodson, located in Overland (a few towns south of Ferguson); and “FHA terms” for houses in Webster Groves.43

In that era, the St. Louis-area builder with the most liberal attitudes on racial matters was Charles Vatterott, a devout Catholic (and brother of the Ferguson subdivision builder in the advertisement reproduced here). Charles Vatterott obtained FHA guarantees for St. Ann, a subdivision (later an incorporated town) he started building in 1943. Vatterott intended for St. Ann to be a community for lower-middle-class Catholics, particularly returning war veterans, although he did not prohibit sales to non-Catholic whites, but only to blacks, as the FHA expected. As was conventional for FHA-financed subdivisions in St. Louis County, deeds on St. Ann homes stated that “no lot or portion of a lot or building erected thereon shall be sold, leased, rented or occupied by any other than those of the Caucasian race.”

Vatterott’s limited liberalism was expressed in an insistence, over residents’ opposition, that the golf course he built as part of the St. Ann development be open to nonresident African Americans. And he built a separate, lower-quality subdivision for African Americans – De Porres in the town of Breckenridge Hills, a few miles away (but not adjacent to) St. Ann. The buyers had incomes and occupations – from truck drivers to chemists – similar to those of St. Ann buyers. Had they been permitted to do so by the FHA and its merchant builders, they could have purchased homes in St. Ann or in any of the many other subdivisions that were built for whites in St. Louis County in the postwar period.

Vatterott could not get FHA financing for De Porres because it was intended for African Americans. As a result, many of the homes were rented, and Vatterott set up a special savings plan by which residents could put aside money towards a purchase of their homes without an FHA or VA mortgage. The De Porres development for African Americans also lacked the full community facilities – parks and playgrounds – that Vatterott had built into the St. Ann subdivision.44

As noted earlier, the federal and local governments in 1952 were still operating public housing projects restricted to lower-middle-class white families. The option of these families to remain in public housing was an impediment to suburban home sales. The Home Builders Association booklet denounced public housing (because it “shackles private builders who can’t compete with the government’s half-price product”) and included a barely disguised racial appeal: “IN YOUR OWN HOME you can pick your own neighbors, IN PUBLIC HOUSING … the government picks them for you.”45 On its face, the claim was clearly false – homeowners could not pick their own neighbors because they had no control over the identities of those buying homes nearby. The only way in which they could pick their neighbors was to purchase their homes in subdivisions that, with government approval, excluded a class of buyers, specifically, African Americans.

The Home Builders’ 1952 warning was accurate that the government picks one’s neighbors in public housing, so there was always the threat that the St. Louis Housing Authority would end its segregation policy and assign African Americans to white projects. In fact, as noted earlier, only three years later, a federal court ordered the authority to do so. The only plausible explanation for the Home Builders’ warning about the government picking neighbors is that if families remained in public housing, they might experience racial integration.

Each of the subdivisions in the advertisements described here is in St. Louis County. The farther south and west in the county a suburb is, the more distant it is from the north St. Louis black ghetto. The suburban developments in the advertisements were all-white, with FHA approval, when constructed; by the 2010 census, Ferguson was only 29 percent white, and then, going south and west, Overland was 73 percent white, Webster Groves was still 90 percent white, and Kirkwood was 89 percent white.

This governmental policy of segregation, though now more than a half-century distant, has had enduring consequences. It contributed mightily not only to our present-day residential segregation, but to all aspects of black-white economic inequality. For example, as shown in the Kirkwood subdivision advertisement, homes were marketed as selling to white FHA buyers for “$8,100 up” in 1952. In that year, such home prices were about twice the national median family income of $3,890, and easily affordable to lower-middle or middle-class African Americans, especially to veterans if they could have benefitted from VA mortgage guarantees. A decade later, when assistant principal Larman Williams and engineer Adel Allen were looking for homes in integrated middle-class suburban neighborhoods, those homes were still affordable. Today, however, houses in Kirkwood sell for about $400,000, more than six times national median family income, and mostly unaffordable to working- and middle-class families.46 But for whites permitted to buy in Kirkwood 50 years ago, the advantages they’ve been able to bequeath to their children have been considerable, relative to those of blacks who were denied similar opportunities.

Even accounting for home improvement investments that owners of these homes have made since 1952, the capital gain for white homeowners, and their heirs, endures. The federal government’s support for residential segregation in the mid-20th century is largely responsible for the fact that while the median family income of African Americans is now about 60 percent of whites’ income, the median household wealth of African Americans is only about 5 percent of whites’ wealth.47 This enormous difference translates into differences between blacks and whites in the security and comfort of retirement (and in the obligations of adult children t

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