Portland observer., March 09, 1978, Image 1

Insurance redlining revealed
PORTLAND
OBSER/ER
V e t s M 8 No. I l
Thursday. March 9, 1978
10c ¡Mr ee,»y
Priestley
switches races
As the filing deadline for those inter­
ested in running for public office nears,
«Tuesday, March 14th) last minute deci­
sions must be made. As in past years, the
state capital and the County Registrar's
offices will be filled with those who’ are
attempting to make the 5:00 p.m. dead
line.
Applications to file for public office are
available at the County Registrar's Of­
fice, 1040 S.E. Morrison, aad must be
filed a t that office or the House of
Re;treaentative’s Chambers in the State
Capital Building (depending on the ¡»si
non »ought 1 by 5:00 p.m., Tuesday,
March 14th, along w ith a filing fee
ranging from S10 to 850 for state and local
offices.
Michael L. Grice, Maasee Kennedy, aad Herb L. Cawthorne, admire Portland's
Albina M ural Project, in aatici;iatioa of "From the P ul.at, From the Peo,4e” - an
evening oi music and oral history illuminating the life and ».writ of D r. M artin Luther
King. Jr.
Program features King’s
religious heritage
The life and spirit of Martin Luther
King. Jr., will come to life in a very
uncommon program on the campus of
Catlin Gabel School, March 15th. 16th,
and 17th. Called "From The Pulpit...
From The People." the presentation will
demonstrate King's spiritual foundation,
as well as bring to life the Gospel music
which surrounded his life.
Herb L. Cawthorne. the director of the
Educational Opportunity Program at
PSU. will deliver the words of Dr. King.
Several of the sermons Dr. King deliver­
ed in the surrounding of the church will
“come alive" as interpreted by Caw-
thorne. “Oral language is a vital part of
the Black experience both in Africa and
America," said the educator who did
graduate work at the University of
Oregon in oral history. Cawthorne said,
"This program emphasizes the positive
and healthy dependence many Black
children have on oral communication,
while bringing valuable elements of his
lory to them in a way that is dynamic and
alive with force."
The performance, which will feature
the New Hope Baptist Church Choir and
special guest. Will Dorsey, the world
reknowned Gospel singer, in a benefit to
expand educational opportunities for
Black children. Funds will go to the
scholarship program at Catlin Gabel
School, the I^ee Owen Stone Pre school,
and the One World Arts Foundation.
Each of these organizations will earmark
money raised for the express purpose of
improving minority participation in their
educational programs.
Catlin Gabel, an independent school on
the outskirts of Portland, provides a
comprehensive program for children of
all ages. Mason Kennedy, a parent and
chairman of the Catlin Enrollment Com­
mittee, says, "Independent schools can no
longer rest on their laurels. It is time for
us to actively express our interest in
diversity, and this program allows us that
opportunity.”
The Lee Owen Stone Pre-school is
named after the late Reverend I-ee Owen
Stone, who served at the St. Phillips
Episcopal Church for more than thirty
years. The founders of One World Arts
Foundation had a special relationship
with Reverend Stone he was a teacher,
a friend, a concerned critic, and always a
willing guide for young people. Thus, a
portion of the funds raised by the
performance will go to the pre-school
which he always said was his most
important legacy.
The third organization involved is One
World Arts Foundation, a non-profit
organization designed to promote artistic
activities among young Black students in
the Portland Public Schools. Michael
Grice, president of One World, says the
foundation is “a living execution of
artistic influence in our everyday com­
munity life. One World will become
known, over time, for its excellent pro­
ductions. its meaningful scholarships, and
its dedication to preservation of Black
culture through various communicative
and artistic endeavors."
One World also includes Herb Caw­
thorne, vice president, and Ken Berry,
secretary treasurer. Berry is the musical
director for “From the Pulpit, From the
People."
A unique experience for all residents of
the Portland community, “From the
Pulpit, From the People" will actually
create the sense of a baptist church on
stage. Music will be balanced by narra­
tion; Dr. King's words will be presented
in a setting which acknowledges his
unshakable belief in the strength of the
Black church. The message of his life will
be presented in a very unusual manner
and, for most, the perspective gained will
give a sense of the man and his struggles
which has heretofore been neglected.
This is the distinct feeling one gets when
talking with those involved in “From the
Pulpit, From the People.”
One of the aims of the program is to
encourage people from all walks of life to
share together. To insure this, a system
of “voucher tickets” has been devised.
These tickets will be distributed to
children and families who otherwise
would not be able to afford to attend.
Transportation will be provided with
several pick up points estab lish ed
throughout the Northeast Portland com­
munity.
For further information contact the
Catlin Gabel School.
King discusses Union Project
The King Neighborhood Association
will hold a workshop on Saturday, March
11th to explore all aspects of relocation
resulting from the proposed Nordstrom
Distribution Center project on Union
Avenue.
The workshop will be held at King
Neighborhood Facility, 4815 N.E. 7th
Avenue from 10:00 a.m. to 1:15 p.m.
The agenda will include;
Concerns of the immediate neighbor
hood and the community at large, zoning,
property tax, impact on property values,
feasibility of moving.
Housing alternatives: relocation pro­
cess, benefits and problems; appraisal
techniques and practices.
Group discussions will be held with
owner residents, tennants, landlords,
and business people.
Resource persons from the U.S. De
partment of Housing and Urban Affairs,
Housing and Community Development,
and Portland Development (xxnmission
will be present.
The workshop is expected to provide
the information needed by the commun
ity residents to make the best decision on
this project.
Wally Priestley has indicated that he is
seriously considering entering the race
for the County Commission position now
held by Mel Gordon. Gordon was notified
Wednesday that he will receive the long
anticipated White House appointment to
head the Pacific Northwest River Basins
Commission. Other candidates already
filed in the race are Gladys McCoy and
Paula Bentley, with former State Repre­
sentative Harvey Akeson planning to
announce Friday. Several others are
rumored to be interested.
Priestley, who has served in the State
Legislature for six terms explained, “1
have been considering this for some time
and now that Mel Gordon will be resign
ing and there will be no incumbent in the
race, it is a good opportunity for a reform
candidate. I am for real charter reform
and for better citizen access to their
elected officials.”
If Priestley runs for the County Com­
mission. he will not be a candidate for his
seat in the Legislature, making that a
wide open race also. Thus far, Evie
Crowell is the only Democrat to file.
(Please turn to Page 2 Column 4)
An 0SP1RG (Oregon Student Public
Interest Research Group) study demon
strates relining by insurance companies
is still prevalent in Portland.
For many years Blacks and other
residents of the predominantely Black
neighborhoods have complained that they
were unable to purchase insurance on
their homes and businesses. Thia prob­
lem supposedly was solved by two bills
passed by the 1971 Legislature. ORS
746.018 made it illegal to discriminate
because of geographic location.
The other bill HB1377 created Oregon
FAIR Plan, a state entity, which was
supposed to provide fire insurance or
property that private insurance compan
ies refused to insure.
OSPIRG found in its study that a
disproportionate number of Oregon
FAIR Plan insurance policies are being
written in Albina, an indication that this
area is being discriminated against by
private insurers.
Of the 120 policies written for homes in
Multnomah County in April and May of
1977 (the study period) 68 were in the
area between Interstate and 16th, Colum
bia Boulevard and I-80N (56.67 percent).
North Portland, with slightly more
housing units, has only nine FAIR Plan
policies.
Southeast had fourteen policies; South­
west had two policies: Northwest had
two policies; and Northeast beyond 16th
Avenue had eight policies. This means
that Albina, with 31.8 percent substan­
dard units, has 63 percent of the FAIR
Plan policies, while North Portland, with
23.9 percent substandard, has only 8.3
percent of the FAIR Plan policies. The
greatest differentiation between the two
areas is that Albina is 44 percent Black
and North Portland is only four percent
Black.
The OSPIRG study concludes that,
“Many insured persons forced to the
FAIR Plan may be victims of insurance
industry ‘redlining,’ a practice which,
whether motivated by bigotry or econo­
mic consideration, ia against existing
state law. The fact that 63 percent of
FAIR Plan habitational policies written
in Portland are for properties located in
Albina, where the percentage of Blacks in
44 percent, is an indication that contrary
to ORS 746.015, insurance companies to
discriminate on the basis of geographical
area and perhaps on the basis of race.
“The Insurance Commissioner is
charged with enforcement of the anti-dis­
crimination law."
Rates for the FAIR Plan have been
comparable to private rates, however, a
rate increase has been proposed.
OSPIRG equates the high cost of admini­
stration with poor management rather
than with losses.
Insurance under the FAIR Plan is
inadequate in that it does not include
burglary and theft or the typical “home-
owner” policy which includes personal
property not in the buildings and liability.
FAIR Plan insurance is restricted to
actual value (sale value of the building
immediately prior to the loss) rather than
replacement value (cost of building an
identical house, including debris re
moval). The difference can be sizable and
the unavailability of insurance for re
placement value is a serious problem.
In some cities these difficiencies are
covered by Federal Crime Insurance, but
the option is not open to Portland
residents because the Federal Insurance
Administration was informed by former
State Insurance Commissioner Lester
Rawls and Mayor Neil Goldschmidt that
the federal insurance program ia not
needed here.
OSPIRG urges the Insurance Commis­
sioner to use his office to reform the
entire insurance industry to put an end to
“redlining" and make the FAIR Plan
unnecessary. Under this plan insurance
companies wouid be required to offer the
same coverage at the same rates on
comparable property regardless of its
location (or the race of its owner). Also,
the state would monitor to insure that all
insurance agencies maintain agents in all
areas they claim to serve.
Together with anti-discrimination en­
forcement, a "Re insurance Exchange"
should be initiated, to which insurance
companies could refer policies they have
written on high-risk properties, to spread
the cost of losses among all companies.
This would eliminate the need for the
FAIR Plan and would allow those com­
panies who do accept high-risk policies to
have part of the cost born by those
companies who refuse these policies.
American State grants Borg-Warner
American State Bank. Portland, is one
of sixty minority-owned banks that have
granted Borg-Warner Corporation lines
of credit totalling 89.6 million, in what is
said to be the largest minority bank
credit line program of its kind with any
U.S. company.
As part of the agreement, the corpora­
tion has placed over $1 million as pay­
ment for the credit lines on deposit with
the banks.
“This is a good step for us since it gets
us involved in the corporate world of
financing,** V.F. Booker, President of
American State Bank said. “We have,
until recently, been locked out of the
private sector but this will open the door
for others. The Borg-Warner deposit will
also enable us to expand our real estate
loans."
Other recent sizable corporate depo-
sits have come from Kraft and Union
OU.
Alvin J. Boutte, president and chief
executive officer of The Independence
Bank of Chicago, which is handling
administration of the program, said that
the program currently is the largest both
in credit line dollars and number of
participants by any U.S. corporation.
Independence Bank is the largest Black-
owned bank in the United States.
“I applaud this move by Borg-Warner,"
Boutte said, “and I’m certain this will
encourage other companies to make
increasing use of the financial services
offered by minority-owned banks.”
All participating banks are either listed
by the U.S. Treasury Department as
“minority banks," or have applied for that
status, according to William M. Valiant,
Borg-Warner vice president and treasur­
line
er. The Treasury Department lists 86
U.S. minority banks, all of which are
being solicited for the program, Valiant
said.
The program, undertaken last Decern
ber, is based upon Borg-Warner's busi­
ness requirements. Valiant pointed out.
“Because of the growth of our business,
we have need for additional lines of credit
and the minority banks offer competitive
costs and services. Also, the deposits
placed with the banks will help stimulate
their growth and, in turn, strengthen the
economic viability of the communities
they serve," he said.
“Valiant noted that the Borg-Warner
program will include more minority
banks as they are formed, and the
company expects to expand its relation­
ship with current participants as they
grow.
You load 16 tons and what do you get?
taxed by the coal states and counties.
When oil and gas prices skyrocketed
M A R C H 4 (P N S ) - Decaying wooden J alter the Arab oil embargo in 1973, the
energy companies jacked up coal prices
shacks and crowded mobile home camps.
as well, but the miners did not share in
Polluted streams and strip-mined hills.
the bonanza.
Underfinanced schools, roads, and health
care facilities.
Take the case of Occidental Petroleum,
owner of the fourth largest coal producer.
These are the hardships most Ameri­
Island Creek Coal Company. According
can coal miners face in their communi­
to studies by economist Tom Woodruff,
ties. For them, this winter's strike is only
an independent energy consultant in
one skirmish in a larger battle to improve
Washington, Island Creek’s pre-tax pro­
the quality of coalfield life.
fits climbed from 69 cents per ton in 1973
Although their jobs are the most
to $8.96 per ton in 1975, an increase of
dangerous in the country, miners' wages
more than 1,000 percent. In the same
are no higher than other unionized
period, miners' pre-tax wages increased
industrial workers. They now average
only 21 percent.
$60 per day, with increases planned in
their new contract. Their income is
In 1974, virtually all of Occidental
seriously eroded by the high cost of food,
Petroleum’s windfall coal profits were
fuel, transportation and housing in the
used to expand oil exploration and pro­
Appalachian mountains.
duction Libya and the North Sea, and in
by M a tt W itt
Community services are generally poor
because mushrooming profits from coal
got to stockholders and executives in
such cities as New York, Boston and
Philadelphia, without being adequately
1975, at least 60 percent went to Oxy
stockholders and overseas oil investment,
according to the company’s financial
reports.
Standard Oil of Ohio (SOHIO), owner
Eller Jackaoa gets a.ieeial tutoring hel;» a t a Portland Community College center
located in St. A ndrew a School.
of major coal producer Old Ben Coal Railway had been increased only 84.50 in
Company, provides another example of the previous 37 years, while the appraisal
the draining awsy of wealth from coal on a 1 jOOO-acre tract owned by Consolida
communities.
After its coal profits tion Coal Company hadn't been changed
doubled as a result of the Arab embargo, at all in fifteen years.
“When I’m down in that hole. I’m
company official Dewitt Buchanan told a
U.S. Senate subcommittee that “Old thinking about those stockholders in New
Ben’s recent profits have added impor­ York making millions of dollars off people
tant support to SOHIO's major financing like me.” said Charlie Ross, an under­
efforts to develop (oil production in) ground miner for Continental Oil in
“It’s blood
Prudhoe Bay and construct the Trans- Raleigh, West Virginia.
money, that’s exactly what it is, and I
Alaska Pipeline."
One reason these profits leave the coal resent it, I sure do.”
Coalfield schools, which depend on
states is that taxation of the politically
state and county taxes, suffer directly
powerful energy companies is inade­
from this undertaxation. Despite the coal
quate. A 1974 study by the Huntington
boom of recent years, Kentucky - the
Herald Dis;«atch in West Virginia found
nation's largest coal producer - ranks
that the state loses at least 8150 million
34th among the states in education
per year because of low taxation of coal
spending per person. Delaware, the na­
and other property. Appraisals for rich
tion’s leader, spends fifty percent more
coal lands are sometimes as low as 85 per
per person on its schools than Kentucky,
acre.
according to figures from the National
In McDowell County, for many years Education Association.
Coal company control of land has not
the country’s largest coal producing
county, the appraisal on a 21,000-acre only resulted in an inadequate tax base,
parcel owned by Norfolk and Western
(Please turn to Page 3 Column 1)
L.C. Kelly learns how to handle cursive w riting ia a concentrated tutoring trogram
offered by Portland Community College at St. A ndrew ’s School in northeast Portland.
PCC/St. Andrew’s tutoring program teaches adults
The inner-city tutoring center at St.
Andrew's Church in Northeast Portland,
run by Portland Community College,
takes an informal approach to learning.
The relaxed, friendly attitude of the
newly refurbished church basement al­
most typifies the scene of a community
gathering.
But serious learning takes place in the
Monday and Wednesday night commu
nity education sessions at the church.
'The thing I like best about these
students," said Sister Genevieve Anne
Hillgen. director of the center, “is that
they all want to be here. They come to us
determined to learn what they need to
get a better job or pass their GED."
For many the passing of the GED, a
high school equivalency program, opens
new doors. This term 36-40 students take
advantage of the tutoring situation.
“Most of the students are here for
reading this quarter," Sister Genevieve
said.
"We cover a variety of subjects,” the
center director continued. ‘T h is includes
math, science, reading and social studies.
What our students really need most is
patience, kindness, consideration and
understanding.”
Students at the center range in age
from eighteen to over seventy. "One 64
year old gentleman came in this quarter
who couldn't read or write in cursive.
Another young man has dyslexia and to
keep his job he needs to learn to
recognize basic words,” Sister Genevieve
explained.
Sister Genevieve taught eighth grade
for many years, taking over the center
operation three years ago.
She has
eighteen volunteer tutors coming now
from as far away as Lake Oswego and
Gresham.
“I get volunteers from all over,” Sister
Genevieve said, “The college sends us
tutors and I have put announcements in
the church and around the neighborhood.
There are workshops for the tutors to
help them get started.”
‘The St. Andrew Center has been in
operation for about six years. Remodeled
storage areas are brightly decorated and
arranged in one large room with several
small cubicles for privacy. A plant stand
adds a cheerful note to one corner.
Workbooks, reading books and sup­
plies from PCC are neatly organized. “I
gather books that the students can use at
home from any place I can,” Sister
Genevieve said, “Many of the students
don't even have access to daily newspap
ers so extra reading material is impor
tant.”
Some students come back term after
term. Their goal - to be able to pass the
GED tests. Classes at the adult center
run all year long.
I