Slate Card & count down clock. Title: The Neighborhood is Obsolete
Show Intro graphics.
Skyline of Chicago. Highway traffic. 1970's taxi drives by. Camera zooms in on Aon Center building.
Montage of smaller city streets in Chicago and small business signs.
Small Chicago church
"Going out of LADIES business. All ladies shoes reduced" sign in store window
E.H. Olson & Bros w/ for sale sign in window
CU of Bill Moyers standing on a residential Chicago street - brownstones and trees in the background.
Animated show intro graphics. Show Title: This Neighborhood is Obsolete. Show credits.
Young blond boy in jeans and plaid shirt on grassy patch of lawn holds a baseball mitt and throws a ball back and forth to someone unseen. Camera zooms out to show Moyers reporting from the sidewalk outside of a brown stone lined residential Chicago neighborhood.
Back view of stout older woman in a housedress, bandana, pants a sweater rakes leaves outside of a brownstone on a residential Chicago street.
Bill Moyers in dark brown suit speaks from the sidewalk of a residential Chicago street. Brownstones behind him. 1970's car park across street.
Low shot looking up at the First Federal Savings bank. Interior shots of First Federal Bank. Home Mortgage. Lobby packed with business men and women. Shot of bank tellers working with customers.
CU of bank worker sitting at a typewriter.
Mary Lee Wolf, leader of Citizens Action Program, speaks on a microphone to a group of supporters. She speaks about redlining and changing investment policies.
CU of wowan holding small blond baby wearing a pink winter coat.
Woman hands out cards with numbers on them to a line of well dressed men.
Male bank worker sits down at desk to sign a check while speaking to the woman across from him. Other desks around him are occupied by workers and bank patrons.
Mary Lee Wolf on microphone speaks to an Assistant VP (Mr. Kennedy) and announces he and another VP will meet with any 3 CAP members. Both of them wear 1970's suits.
CU of CAP pin on suit lapel
CU of Northwest Austin Council pin on suit lapel.
Sign on bank wall written in cursive " Not get a BIG 7 1/2% on your savings with 4-year Certificate. $1,000 minimum"
Bank lobby crowded with well dressed men and women
African American man in dark suit with white carnation in this lapel
Line of people wait to be seen by bank teller
CU of middle aged woman with short dark hair is interviewed about the bank relocating. "Austin" is written on her jacket.
WS busy Chicago street with traffic coming towards camera. City bus. Budweiser sign. Camera pans across the street to Austin Federal Savings bank. Camera zooms in on large outdoor sign.
Older gray haired woman in tweed coat with purse over her shoulder and hands in pockets walks down the front steps of her brownstone building next to Bill Moyers.
Man works on the engine of his car which is parked on the side of the street. hood popped open.
Older white woman in with grey hair in housecoat stands on the porch of her home talking to the African American man on the sidewalk in front.
Exterior shot of run down abandoned brick building. Front window is broken and boarded up with a piece of plywood.
Bill Moyers walks down a block in a Chicago neighborhood talking with an older woman who lives in the neighborhood. She points out the abandoned homes being lost to FHA mortgage loans.
"The Raemer - Transient Drive In" sign
Exterior shot of large abandoned brick hotel in Garfield Park, Chicago
Run down Chicago building with "Senate" marquee sign that is falling apart. Bob Evans truck parked in front.
Exterior shot of an old Savings and Loan Association building - now a funeral home. "Luthar Sparks Funeral Home 626-1092" 5300 West. Madison Street
CU of Bill Moyers talking to older gray haired woman in 1970's trench coat standing on a urban Chicago street talking about all the local banks that have gone out of business.
CU F.H.A Mortgage Sale sign on chain link fence.
Best Realty Co. Inc - Sales . Management Attorneys, Lawyers Weinberg & Rosengarden SIgn
1970's cars parked along residential Chicago neighborhood. String of new brock town homes behind. East Rogers Park, Chicago
African American young man in wool sweater and red and white winter hat rakes leaves
Clark Street in Rogers Park, Chicago's North Shore. Camera zooms into Rogers Park Savings bank sign
CU The First Commercial Bank sign
Mr C.K. Restaurant - Char-Broiled Food sign
Two cooks in white uniforms at restaurant counter serve up freshly cooked food.
CU man flipping burgers on indoor grill in a restaurant
Waitress with glasses, hair pulled back, blue diner style dress rings up customer at old fashioned register.
Waitress in diner walks to cook at grill. Reading from a pad she tells him the customer's order
CU knife carving a thin slice of ham
Bill Moyers sits down with locals at a diner booth to talk to them about the banking/mortgage crisis
back shot of older woman in dress and sweater raking leaves outside of her home in Chicago
Kids swing and play on nice playground in a Chicago neighborhood as mom looks on
Loyola University sign at entrance of college.
CU of brick multi-story building in Chicago. Camera pans down building until it lands on the lowest level. A young blond boy peers out the window from his home inside. His mom sits next to him
Back to Moyers around diner table with local housewives and accountant
CU local Chicago housewife seated next to Bill Moyers at a diner talking about mortgage crisis. 1970's houndstooth suit over red turtleneck.
Rogers Park Savings bank. Woman wheels baby in stroller
long shot of row of desks inside of a savings bank.
Moyers sits down with Jim Langworthy, VP Rogers Park Saving & Loan seated at a desk inside the office.
What about the complaints that that your father doesn't believe in the community doesn't really think it has a future and that he's simply written off Rogers Park?
Jim Langworthy 14:13
Well, I hope that was just rhetoric to grab attention because that is untrue. This institution has a substantial investment in Rogers Park. We can't live without Rogers Park. If the community goes down, we can't continue to exist that I see. He cares about Rogers park a great deal because this is the community in which we operate. I think I probably spend more time here than I do at home. But on the other hand, you cannot make any loan that in good conscience you don't think is a good loan.
Bill Moyers 14:47
What percentage of the loans you make are made right here in Rogers park,
Jim Langworthy 14:52
but we have not completely broken it all down. It would be a long job. I'd say that probably About 20% In general,
Bill Moyers 15:02
does that mean that 80% of the of the loans you make go outside of, of the area?
Jim Langworthy 15:10
The local community? So you'd say that, yes.
Bill Moyers 15:12
How much of the money that goes outside of the local community is, in fact, deposits from the local,
Jim Langworthy 15:16
I'd say probably 80% of our deposits come from an area within five miles around our office.
Bill Moyers 15:23
Well, isn't that what they call disinvestment? That is you're taking the deposits of this community, and helping to build up other communities while this community continues to decline?
Jim Langworthy 15:32
Well, hopefully it will work in reverse from another institution, you know, within three, four miles of us, I'd have to say that one of the elements of good mortgage underwriting is a spread of risk. If we were located in a northern suburb in a new community, a new suburb, we still couldn't put all of our eggs into one basket.
Bill Moyers 15:53
Doesn't redlining take place? In some parts of this city? Aren't there financial investors who simply decide this isn't where the future is? And we better get out to the suburbs?
Jim Langworthy 16:07
Well, I can't answer that. I would just guess, though, that if that's their decision, rather than just kissing off that area, they have got to put some effort into a plan for providing adequate financing for the people who want to continue to make that area their home.
CU Ridge Blvd & Chase Av street signs. Camera angle widens to show cars driving by in both directions on a rainy day.
John Colon 16:51
I asked to see the president of the bank was JN Langworthy. He was not there. I was told that I could see his son, who was the vice president of the savings and loan association. So his son came out. I talked to him. And he told me that they were not making home improvement loans in this area. I've had my mortgage with the savings and loan for 12 years. It's not a matter of economics. I've never I've never been late on a payment my life. I was sick to my stomach. I just couldn't believe that this man is operating a savings and loan association in this neighborhood. And that he doesn't feel that this neighborhood is worth worth being a community.
Bill Moyers 17:38
Do you feel this neighborhood is going down?
John Colon 17:40
No, sir, not at all. I've heard people say that it is a changing neighborhood. I've lived here 35 years I was born and raised in this neighborhood. I hear people say the word changing neighborhood. And that doesn't mean anything to me. I think a changing neighborhood can be good. And I think it is in this scene. Any changes? Yes. But offer the better. I see different people moving into the neighborhood and I like this. I like this I think community can be can profit from different types of people being
Bill Moyers 18:12
you don't feel threatened, threatened.
John Colon 18:15
Bill Moyers 18:16
You don't mind your children growing up here?
John Colon 18:18
No, no, not at all.
Martin & Marbry Realtors window sign. 80% loans. A Buyer for Every Home!
Bill Moyers sits down with Saul Brownstein, VP of Martin and Marbry Realtors.
Is there any doubt in your mind that redlining exists
Saul Brownstein 18:36 no question whatsoever that it exists. They themselves will use expressions such as East Rogers Park is going down the drain and they don't wish to go down the drain weather. A good example of that is a property that we had for sale north of Howard Street. And there were 12 lending institutions who turned down a very, very qualified purchaser who wish to buy a very, very lovely three flat until finally the attorney for the purchaser said Look, don't buy it. Because if they don't want it, you shouldn't want it. And this was a very qualified purchaser who was willing to make a 50% down payment and pay the highest rate of interest is allowable by law, and they still didn't do anything about it.
Bill Moyers 19:23
If you reached out to that telephone and called a local bank or a savings institution that you know of and asked for a loan in East Rogers Park, what would be the result?
Saul Brownstein 19:32
Hysterical laughter they can justify it.
Bill Moyers 19:39
Do they have a stake in the community?
Saul Brownstein 19:39
Obviously not. Their stake in the community is only the dollars that are coming in. What stake would you say they have in the community? They might only might they might own the building that they're in but other than that they're not concerned financially with the community.
>Bill Moyers 19:55
The community dies around them.
Saul Brownstein 19:57 So they pick themselves up and move somewhere else. Just like automobile dealers do.
Bill Moyers walks down sidewalk between two brick Chicago homes with Irving Katz, a druggist, who bought and is restoring the apartment building he and Moyers are walking around looking at.
71st Street in South Shore, Chicago. Store signs read: "Wigs," "Delicatessen Restaurant," Price Rite," "Rite Way," "Handy Dandy Self Serve Lauderette - wash 20 cents, dry 10 cents"
Montage of local Chicago store front gone out of business.
Exterior shot of South Shore Bank in Chicago neighborhood
"Making Changes You Can Bank On - The New South Shore National Bank - pushing hard to make things better" sign
South Shore Savings Bank President Milton Davis and Chairman, Ron Grzywinski stand under bank sign
Bank President & Chairman talk to Moyers:
Ron Grzywinski 21:52
As we all know, we live in a democracy, and that banks and savings and loans are the custodians of the people's money, and that they are the custodians of the people's money, they should not be embarrassed, they should not be bashful about telling the people where they are investing those funds. And they have a good reason for investing them outside of that neighborhood, then they should be able to document that reason, and they should be able to convince their depositors that that's good judgment on their part. One of the things that we've all forgotten is that banks and savings loans in America are chartered for the need and convenience of the neighborhood. And the bankers. The people who manage banks and people manage savings and loans should find ways in which they can put those resources to work.
Milton Davis 22:32
We feel that a commercial bank working in conjunction with other groups, or associations in the community who have the resources can perhaps turn these things around.
Ron Grzywinski 22:42
We do not feel that we can wait for the government to take the initiative. We feel that we are the managers of a major institution in South Shore, and that people have expect this of us they expect us to work in their best interest. They not only expect us to maintain the safety of their deposits and earn good interest on those deposits, but they also want us to work to improve their neighborhood.
SW of a highway next to a shopping mall parking lot.
Interior shot of worlds largest shopping center, Woodfield Mall in the 1970's. Merle Norman Cosmetics & Fredricks of Hollywood stores. Camera zooms out to show Lerner Shoes
CU shoppers walk in corridor or shopping mall
Slow Pan of cornfields in Illinois suburb
worker stands on scaffolding building a brick building wall soon to be a bank (First Federal)
Exterior shot of First Federal of Schaumburg (Laramie Branch)
Two Homes are Better Than One sign
Bill Moyers sits down with Federal Home Loan Bank President John Stipp and Vice President and Cousel Albion Fenderson
One thing that the community groups tell me that they want is disclosure. They want to know how much of a savings and loans company's investments are being made in that particular neighborhood.
Albion Fenderson 24:16
The only deterrent, as far as we here are concerned in the Federal Home Loan Bank and as agents for the Federal Home Loan Bank Board. Is that number one, that associations are not required by law to to make this disclosure. And secondly...
Bill Moyers 24:33
Would it hurt them if they were?
John Stipp 24:34
I don't know that it would I don't know that it would I don't know that it wouldn't. The only thing that I know is that neither the Federal Home Loan Bank Board nor this bank has the legal authority to require the institutions to do it. Now, I think you probably know that we have asked them on a purely voluntary basis to give us the information.
Bill Moyers 24:57
Are they willing to make disclosure
John Stipp 24:59
they're willing Make disclosure as a group, but not on an individual Association basis. And I would not expect associations ever to voluntarily on an individual institutional basis, say we have so much deposits from this zip code area. And we've made so many loans in here.
Bill Moyers 25:19
Now, what would What's your objection to that?
John Stipp 25:21
Because then some other Association over here, that happened to have more money or more loans, and that same zip code could be held up as a great example of this one. And there would be pressures that there may be very many other reasons why this association didn't have as much of one or the other as this one had good, valid reason.
Albion Fenderson 25:40
I don't believe there's been any conscious decision in any given area to draw a line around it. And to say that we just will not even consider a loan in that area
Bill Moyers 25:50
You don't think there is something called redlining?
Albion Fenderson 25:54
There's something called redlining but it depends on your definition of redlining. If your definition is that you have made a judgment based on economic factors on the normal factors of why you make a loan or you don't make a loan, and then you make a an intelligent and sound decision on that. I would not call it redlining.
Bill Moyers 26:18
What is it that causes a neighborhood not to be premium?
John Stipp 26:23
Well, it would be the the general character credit character of the neighborhood itself. And over a period of very few years, an experienced loan officer will have a feel as to the probable ability of most people in that neighborhood to repay a loan commitment.
Bill Moyers 26:45
Isn't that redlining by another name?
John Stipp 26:48
You'll have to define the term redlining.
Albion Fenderson 26:51
I don't think these catchphrases help us any. Now we have to get to, to the factual.
Dreary day at dusk on a busy Chicago city street. "Tysone Liquors" "Golden Skillet" "Camelia Fashion" 1970's cars
Woman in long dark coat and red handkerchief over her hair walks by grocery store holding white shopping bag. "Closing Out - 1/2 Off" sign
Two young children with winter hats and winter coats hold each other's hands and hand of the mother who is walking them down a Chicago city sidewalk. 3rd child is behind and runs to catch up
Huge Chicago mural to represent breaking the grip of the slum landlord.
Animated PBS graphics
Description: Episode #206: This Neighborhood is Obsolete OBD: December 5, 1973 An examination of two Chicago communities locked in a struggle with their local banks and savings and loan associations. Though the citizen of Austin and Rogers Park were determined to make their declining neighborhoods viable once more, they were encountering stiff resistance from a banking community. Moyers examined banking policies which, he said, “contribute wittingly and unwittingly to neighborhood decay” in Chicago and throughout the rest of the country.
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