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File THE WHITE HOUSE WASHINGTON December 6, 1963 MEMORANDUM FOR Mr. Louis Martin Democratic National Committee The attached somehow turned up on my desk and it seemed to me that it might be of interest to you. I pass it on for whatever action you deem appropriate. Lee be C. White Assistant Special Counsel to the President Enc. OHIO NEGROES Columbus, Ohio, Correspondent October 7, 1963 Governor Rhodes has appointed several Negroes to high positions for the first time in the history of the state, and has retained the few Negroes appointed by Governor DiSalle. Some of the Rhodes appointeed are: Llewlyn Jack Coles, Administrative Assistant to the Governor. William O. Walker, Industrial Relations Director. Augustus G. Parker, Chairman, Industrial Compensation Board. Ellis Ross, Chairman, Civil Rights Commission. Leonard Holland, Secretary-Treasurer, Civil Rights Commission. William Willis, member of the Youth Commission. Macco Clarke, member of the Education Regent Board. Ralph Brown, examiner, Bureau of Unemployment Compensation. Wade Franklin, Intergroup Relations chief. Ralph Beason, Motor Pool Superintendent. Robert Duncan, Chief Attorney of Liquor Control and Unemployment Compensation. Ollie Milner, Superintendent of Bedding and Upholstery. J. Maynard Dickerson, a Lausche Democrat, was transferred from chairman of the Industrial Compensation Commission to a member of the Liquor Control Commission. Joseph Doneghy retained his position as dhairman of the Pardon and Parole Commission. Salaries of these positions range from $10,000 to $14,000 a year. The record of Federal appointments of Negroes has not been Ohio Negroes (2) good in Ohio. Franklin Whittaker, one of the first Negroes given a Federal appointment was a Republican. Whittaker was named to the book Commerce Department. Rixxx Dissatisfied with his assignments there he moved to the Civil Rights Commission. Still dissatisfied he resigned to return to the private practice of law in Cincinnati. Negro Democrats here that he has been sent out there to build a Kennedy Negro organization and they resent being bypassed. One of the few other Negro appointments in Shio is Frederick H. Kelley, who has been named an appraiser in the Columbus office of the Federal Housing Administration. He is the first Negro appraiser in the country, but is only a G.S. 9. There is said to be no Negvo Democrat serving anywhere at a policy level. SMALL BUSINESS ADMINISTRATION WASHINGTON, D.C. 20416 OFFICE OF THE ADMINISTRATOR February 5, 1964 The President The White House Washington, D. C. 20501 Subject: Pilot Loan Project for Pro- spective Negro Businessmen Dear Mr. President: I thought that you would be Interested to learn that the Small Business Administration launched a pilot loan and management training program for very small businesses, particularly those of minority groups, In Philadelphia last week, and that the Initial response to the program has been extremely enthuslastic. Briefly, the program operates as follows: Three Philadelphia Institutions have organized a non-profit corporation. (The three Institutions are: (1) the City of Philadel- phia; (2) the Drexel Institute of Technology; and (3) the Fellowship Commission.) This non-profit foundation, called the Small Business Opportunities Corporation, will have a permanent staff of five people augmented by the voluntary participation of 30-40 prominent business- men from the Philadelphia area. The non-profit corporation will recruit and screen prospective businessmen from the varlous poverty groups and, with the help of SBA, will organize a training program for each Individual, pointed towards a particular enterprise. Any person certified by the non-profit corpora- tion as reasonably qualified to conduct successfully the type of busi- ness he proposes to enter will be eligible for a special loan from the SBA. It is a special loan because it will not require previous earn- Ings record, previous experience, or collateral. Loans are presently limited to $6,000, with a maturity of six years. It Is expected that the early applicants will be trained in finance for the operation of grocery stores, service stations, repair shops, paint stores and similar small retail and service operations. In the first five days of the program (January 29 to February 4) 293 small businessmen were screened, 100 of them referred to SBA to discuss their financial problems with loan specialists, 45 loan appll- cations were handed out and three applications are nearly ready for approval. If this program proves successful, It Is Intended to estab- 11sh a similar program In several other cities, Including Boston, New York, Chicago, Los Angeles, Detroit, and Washington, D. C. The pilot project may Indicate that legislation will be required to liberalize SBA's lending authority for nationwide operation. We will not know whether this is absolutely necessary until we have several months of experience with the Philadelphia project. Respectfully yours, (Signed) Eugene P. Foley Eugene P. Foley Administrator SMALL BUSINESS ADMINISTRATION WASHINGTON 25, D.C. OFFICE OF THE ADMINISTRATOR December 9, 1963 MEMORANDUM FOR: Honorable Walter Jenkins Special Assistant to the President FROM: Eugene P. Foley Administrator SUBJECT: Coordination of Federal Lending and Spending Programs in Hard Core Unemployment Areas of Major Citles I am attaching a memorandum on the above subject which I sent to a group of officials In the Administration some time ago. It Is hard to believe there Is no coordination of Federal programs in urban areas but there isn't. I think we can doda much better job of Implementing these programs if they were coordinated with other Federal programs as well as municipal planning and, at the same time attack one of the major economic and social problems of the country -- the hard core unemployment areas of major cities. I personally think this has great political benefits for President Johnson. I might suggest we select a pilot city to experiment with and after some of the "bugs" are worked out, arrange for the President to hold a conference of the Congressmen and mayors of other large cities for the purpose of announcing a program to attack this problem. 1 have not gone forward with this plan as yet and would like to have some Indication of approval to go ahead before I start. I would, of course, see to it that there would be no national publicity until the President made his announcement. Attachment SMALL BUSINESS ADMINISTRATION WASHINGTON 25, D.C. OFFICE OF THE ADMINISTRATOR October 30, 1963 MEMORANDUM FOR: Bernard L. Boutin General Services Administration FROM: Eugene P. Foley Administrator SUBJECT: Coordination of Federal Lending and Spending Programs in Hard Core Unemployment Areas of Major Citles At the meeting in your office recently, I mentioned my thoughts on the above subject. Briefly stated, they are as follows: A number of Federal agencies have lending or spending programs that operate In our major cities. For Instance, SBA has a regular business loan program (amounting to approximately $300 million a year), a state and local development company program (amounting to approximately $35 million a year), and a small business investment company program (amounting to approximately $85 million a year). Urban Renewal, of course, has a major program as do HEW, Labor, (Manpower Training), and ARA. The heart of the problem is the fact that most of our hard core long range unemployment is in large citles which are generally not covered by the programs of the Area Redevelopment Administration. It seems to me we could accomplish a great deal In terms of alleviating this hard core problem by coordinating the existing programs of the Federal Government. More specifically, I have In mind selecting a city that has a Democratic mayor and appointing a Federal Coordinator representing all agencies of the Government that might have a spending or lending program in that city to work with the city government. This may seem obvious and simple, but the plain facts of life are that this has never been done. Most city departments are like government bureaus: they are compartmentalized and think solely in terms of their own agency's operations. (Bill Slayton of URA, for Instance, did not know of the opportunities that exist in the community development program which I administer; he simply had never heard of it before.) I discussed this with Lee White and he feels It would be a good idea to select a city as a pilot program to see If this might possibly be expanded to cover all the major cities in the U.S. Needless to say, there could concelvably be a political benefit both for the Administration and for friendly mayors. I cannot be at the next scheduled meeting of our group but you may wish to discuss this matter in my absence. The following cities may conceivably be selected as the pilot city: St. Louis, Providence, Philadelphia, Pittsburgh, Detroit, Los Angeles, Chicago, and Cleveland. 1 am sending this memorandum to you in order to get your views on this both as to its economic practicality as well as Its political practicality. If there seems to be a consensus of approval, I would take the bull by the horns and call the necessary Federal agencies together, select a city, and go to work. If you have any thoughts on this, I would be Interested in hearing from you. CC: Lee White - White House James K. Carr - Interior Frederick G. Dutton - State John S. Gleason, Jr. - VA William J. Hartigan - PO John F. Henning - Labor Ivan A. Nestigen - HEW Milton P. Semer - HHFA SMALL BUSINESS ADMINISTRATION WASHINGTON 25, D.C. OFFICE OF THE ADMINISTRATOR October 29, 1963 MEMORANDUM FOR: Bernard L. Boutin Administrator General Services Administration James K. Carr Under Secretary Department of the Interior Frederick G. Dutton Assistant Secretary of State John S. Gleason, Jr. Administrator Veterans Administration William J. Hartigan Assistant Postmaster General John F. Henning Under Secretary Department of Labor Ivan A. Nestingen Under Secretary Department of Health, Education and Welfare Milton P. Semer General Counsel Housing and Home Finance Agency FROM: Administrator Small Eugene Business P. Foley Administration E.P.Dbley - - SUBJECT: Coordination of Federal Lending and Spending Pro- grams In Hard Core Unemployment Areas of Major Cities Lee white SMALL BUSINESS ADMINISTRATION WASHINGTON 25, D.C. OFFICE OF THE ADMINISTRATOR January 6, 1964 MEMORANDUM FOR: Honorable Walter Jenkins Special Assistant to the President FROM: Eugene P. Foley Eugene P. Foley Administrator SUBJECT: Small Business Loans to Prospective Negro Buslnessmen, Philadelphia, Pa. On January 28, 1964, 1 am Inaugurating In Philadelphia a pro- gram designed to Increase the number and volume of small business loans to Negro businessmen. 1 have a series of conferences arranged all day In Philadelphia, together with radio and TV programs and a general news conference. This has attracted considerable Interest. I think you ought to know about It in the event you may wish to Identify the Presi- dent with the project. The plan I am following In Philadelphia is what I hope to begin in other cities. Briefly, I am developing a system In which the SBA works with a private, non-profit foundation (in this case It is the Small Business Opportunities Corporation sponsored by the Drexel Insti- tute, the Fellowship Commission and the City of Philadelphia) which will recruit prospective Negro businessmen and, In cooperation with SBA, give them a business management training program. The SBA will then advance the necessary capital for those persons recommended by the non-profit foundation as reasonably qualified to manage a business. This is a major change in our program because It will call for some relaxation of our lending criteria. I have not gone beyond Philadelphia at this time because I want to see what our experience is. I do have In mind, however, attempting a similar program In other cities which have a heavy Negro population. The basic reasons for a special emphasis in the Negro busl- ness community are rather obvious. There are 600,000 Negroes in Phila- delphia, approximately 5,000 Negro-owned businesses, but only 7 SBA loans to those businesses In 102 years. It is well recognized In bank- Ing circles that Negro businesses are extremely risky and financing is therefore hardly available to potential Negro businessmen. Our ultimate - 2 - objective, of course, Is to help develop a strong middle class among the Negro community. This should help give that community not only leadership but a sound, stable social structure. For the first time In the history of SBA I have appointed several Negroes to our National Advisory Council. I Intend to appoint more. It may be that the President or someone In the White House acting for the President would like to contact personally varlous Negroes for appointment to the Advisory Council. Jackie Robinson, for Instance, might be a good appointment. The Negro press In America will be covering our Philadelphia meeting very closely and heavily. Please advise If you would like to have a White House Identification In any way with this project. I should be happy to prepare any message or letter. I am not advising anyone within SBA or the Negro community of this memorandum, In the event you may have some other thought on this.

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October 1963 memo on blacks appointed to positions in the Ohio state government.

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    "ocrText": "File\nTHE WHITE HOUSE\nWASHINGTON\nDecember 6, 1963\nMEMORANDUM FOR\nMr. Louis Martin\nDemocratic National Committee\nThe attached somehow turned up on my\ndesk and it seemed to me that it might\nbe of interest to you. I pass it on for\nwhatever action you deem appropriate.\nLee be C. White\nAssistant Special Counsel\nto the President\nEnc.\nOHIO NEGROES\nColumbus, Ohio, Correspondent\nOctober 7, 1963\nGovernor Rhodes has appointed several Negroes to high\npositions for the first time in the history of the state, and has retained\nthe few Negroes appointed by Governor DiSalle. Some of the Rhodes\nappointeed are:\nLlewlyn Jack Coles, Administrative Assistant to the\nGovernor.\nWilliam O. Walker, Industrial Relations Director.\nAugustus G. Parker, Chairman, Industrial Compensation Board.\nEllis Ross, Chairman, Civil Rights Commission.\nLeonard Holland, Secretary-Treasurer, Civil Rights Commission.\nWilliam Willis, member of the Youth Commission.\nMacco Clarke, member of the Education Regent Board.\nRalph Brown, examiner, Bureau of Unemployment Compensation.\nWade Franklin, Intergroup Relations chief.\nRalph Beason, Motor Pool Superintendent.\nRobert Duncan, Chief Attorney of Liquor Control and Unemployment\nCompensation.\nOllie Milner, Superintendent of Bedding and Upholstery.\nJ. Maynard Dickerson, a Lausche Democrat, was transferred from\nchairman of the Industrial Compensation Commission to a member of the Liquor\nControl Commission. Joseph Doneghy retained his position as dhairman of the\nPardon and Parole Commission.\nSalaries of these positions range from $10,000 to $14,000 a year.\nThe record of Federal appointments of Negroes has not been\nOhio Negroes (2)\ngood in Ohio. Franklin Whittaker, one of the first Negroes given a Federal\nappointment was a Republican. Whittaker was named to the book Commerce\nDepartment. Rixxx Dissatisfied with his assignments there he moved to the\nCivil Rights Commission. Still dissatisfied he resigned to return to the\nprivate practice of law in Cincinnati. Negro Democrats here that he has\nbeen sent out there to build a Kennedy Negro organization and they resent\nbeing bypassed.\nOne of the few other Negro appointments in Shio is\nFrederick H. Kelley, who has been named an appraiser in the Columbus\noffice of the Federal Housing Administration. He is the first Negro\nappraiser in the country, but is only a G.S. 9. There is said to be no\nNegvo Democrat serving anywhere at a policy level.\nSMALL BUSINESS ADMINISTRATION\nWASHINGTON, D.C. 20416\nOFFICE OF THE ADMINISTRATOR\nFebruary 5, 1964\nThe President\nThe White House\nWashington, D. C. 20501\nSubject: Pilot Loan Project for Pro-\nspective Negro Businessmen\nDear Mr. President:\nI thought that you would be Interested to learn that the\nSmall Business Administration launched a pilot loan and management\ntraining program for very small businesses, particularly those of\nminority groups, In Philadelphia last week, and that the Initial\nresponse to the program has been extremely enthuslastic.\nBriefly, the program operates as follows:\nThree Philadelphia Institutions have organized a non-profit\ncorporation. (The three Institutions are: (1) the City of Philadel-\nphia; (2) the Drexel Institute of Technology; and (3) the Fellowship\nCommission.) This non-profit foundation, called the Small Business\nOpportunities Corporation, will have a permanent staff of five people\naugmented by the voluntary participation of 30-40 prominent business-\nmen from the Philadelphia area.\nThe non-profit corporation will recruit and screen prospective\nbusinessmen from the varlous poverty groups and, with the help of SBA,\nwill organize a training program for each Individual, pointed towards a\nparticular enterprise. Any person certified by the non-profit corpora-\ntion as reasonably qualified to conduct successfully the type of busi-\nness he proposes to enter will be eligible for a special loan from the\nSBA. It is a special loan because it will not require previous earn-\nIngs record, previous experience, or collateral. Loans are presently\nlimited to $6,000, with a maturity of six years.\nIt Is expected that the early applicants will be trained in\nfinance for the operation of grocery stores, service stations, repair\nshops, paint stores and similar small retail and service operations.\nIn the first five days of the program (January 29 to February\n4) 293 small businessmen were screened, 100 of them referred to SBA to\ndiscuss their financial problems with loan specialists, 45 loan appll-\ncations were handed out and three applications are nearly ready for\napproval.\nIf this program proves successful, It Is Intended to estab-\n11sh a similar program In several other cities, Including Boston, New\nYork, Chicago, Los Angeles, Detroit, and Washington, D. C. The pilot\nproject may Indicate that legislation will be required to liberalize\nSBA's lending authority for nationwide operation. We will not know\nwhether this is absolutely necessary until we have several months of\nexperience with the Philadelphia project.\nRespectfully yours,\n(Signed) Eugene P. Foley\nEugene P. Foley\nAdministrator\nSMALL BUSINESS ADMINISTRATION\nWASHINGTON 25, D.C.\nOFFICE OF THE ADMINISTRATOR\nDecember 9, 1963\nMEMORANDUM FOR:\nHonorable Walter Jenkins\nSpecial Assistant to the President\nFROM:\nEugene P. Foley\nAdministrator\nSUBJECT:\nCoordination of Federal Lending and Spending\nPrograms in Hard Core Unemployment Areas\nof Major Citles\nI am attaching a memorandum on the above subject which\nI sent to a group of officials In the Administration some time\nago. It Is hard to believe there Is no coordination of Federal\nprograms in urban areas but there isn't. I think we can doda\nmuch better job of Implementing these programs if they were\ncoordinated with other Federal programs as well as municipal\nplanning and, at the same time attack one of the major economic\nand social problems of the country -- the hard core unemployment\nareas of major cities.\nI personally think this has great political benefits for\nPresident Johnson. I might suggest we select a pilot city to\nexperiment with and after some of the \"bugs\" are worked out, arrange\nfor the President to hold a conference of the Congressmen and mayors\nof other large cities for the purpose of announcing a program to\nattack this problem.\n1 have not gone forward with this plan as yet and would\nlike to have some Indication of approval to go ahead before I start.\nI would, of course, see to it that there would be no national\npublicity until the President made his announcement.\nAttachment\nSMALL BUSINESS ADMINISTRATION\nWASHINGTON 25, D.C.\nOFFICE OF THE ADMINISTRATOR\nOctober 30, 1963\nMEMORANDUM FOR: Bernard L. Boutin\nGeneral Services Administration\nFROM:\nEugene P. Foley\nAdministrator\nSUBJECT:\nCoordination of Federal Lending and Spending\nPrograms in Hard Core Unemployment Areas of\nMajor Citles\nAt the meeting in your office recently, I mentioned\nmy thoughts on the above subject. Briefly stated, they are as\nfollows:\nA number of Federal agencies have lending or spending\nprograms that operate In our major cities. For Instance, SBA\nhas a regular business loan program (amounting to approximately\n$300 million a year), a state and local development company program\n(amounting to approximately $35 million a year), and a small business\ninvestment company program (amounting to approximately $85 million\na year). Urban Renewal, of course, has a major program as do HEW,\nLabor, (Manpower Training), and ARA.\nThe heart of the problem is the fact that most of our\nhard core long range unemployment is in large citles which are\ngenerally not covered by the programs of the Area Redevelopment\nAdministration. It seems to me we could accomplish a great deal\nIn terms of alleviating this hard core problem by coordinating\nthe existing programs of the Federal Government.\nMore specifically, I have In mind selecting a city that\nhas a Democratic mayor and appointing a Federal Coordinator representing\nall agencies of the Government that might have a spending or lending\nprogram in that city to work with the city government. This may seem\nobvious and simple, but the plain facts of life are that this has never\nbeen done. Most city departments are like government bureaus: they\nare compartmentalized and think solely in terms of their own agency's\noperations. (Bill Slayton of URA, for Instance, did not know of the\nopportunities that exist in the community development program which\nI administer; he simply had never heard of it before.)\nI discussed this with Lee White and he feels It would be a\ngood idea to select a city as a pilot program to see If this might\npossibly be expanded to cover all the major cities in the U.S.\nNeedless to say, there could concelvably be a political benefit\nboth for the Administration and for friendly mayors.\nI cannot be at the next scheduled meeting of our group\nbut you may wish to discuss this matter in my absence. The following\ncities may conceivably be selected as the pilot city: St. Louis,\nProvidence, Philadelphia, Pittsburgh, Detroit, Los Angeles, Chicago,\nand Cleveland.\n1 am sending this memorandum to you in order to get your\nviews on this both as to its economic practicality as well as Its\npolitical practicality. If there seems to be a consensus of\napproval, I would take the bull by the horns and call the necessary\nFederal agencies together, select a city, and go to work. If you have\nany thoughts on this, I would be Interested in hearing from you.\nCC: Lee White - White House\nJames K. Carr - Interior\nFrederick G. Dutton - State\nJohn S. Gleason, Jr. - VA\nWilliam J. Hartigan - PO\nJohn F. Henning - Labor\nIvan A. Nestigen - HEW\nMilton P. Semer - HHFA\nSMALL BUSINESS ADMINISTRATION\nWASHINGTON 25, D.C.\nOFFICE OF THE ADMINISTRATOR\nOctober 29, 1963\nMEMORANDUM FOR:\nBernard L. Boutin\nAdministrator\nGeneral Services Administration\nJames K. Carr\nUnder Secretary\nDepartment of the Interior\nFrederick G. Dutton\nAssistant Secretary of State\nJohn S. Gleason, Jr.\nAdministrator\nVeterans Administration\nWilliam J. Hartigan\nAssistant Postmaster General\nJohn F. Henning\nUnder Secretary\nDepartment of Labor\nIvan A. Nestingen\nUnder Secretary\nDepartment of Health, Education and Welfare\nMilton P. Semer\nGeneral Counsel\nHousing and Home Finance Agency\nFROM:\nAdministrator Small Eugene Business P. Foley Administration E.P.Dbley - -\nSUBJECT:\nCoordination of Federal Lending and Spending Pro-\ngrams In Hard Core Unemployment Areas of Major Cities\nLee white\nSMALL BUSINESS ADMINISTRATION\nWASHINGTON 25, D.C.\nOFFICE OF THE ADMINISTRATOR\nJanuary 6, 1964\nMEMORANDUM FOR:\nHonorable Walter Jenkins\nSpecial Assistant to the President\nFROM:\nEugene P. Foley Eugene P. Foley\nAdministrator\nSUBJECT:\nSmall Business Loans to Prospective\nNegro Buslnessmen, Philadelphia, Pa.\nOn January 28, 1964, 1 am Inaugurating In Philadelphia a pro-\ngram designed to Increase the number and volume of small business loans\nto Negro businessmen. 1 have a series of conferences arranged all day\nIn Philadelphia, together with radio and TV programs and a general news\nconference. This has attracted considerable Interest. I think you\nought to know about It in the event you may wish to Identify the Presi-\ndent with the project.\nThe plan I am following In Philadelphia is what I hope to\nbegin in other cities. Briefly, I am developing a system In which the\nSBA works with a private, non-profit foundation (in this case It is the\nSmall Business Opportunities Corporation sponsored by the Drexel Insti-\ntute, the Fellowship Commission and the City of Philadelphia) which will\nrecruit prospective Negro businessmen and, In cooperation with SBA, give\nthem a business management training program. The SBA will then advance\nthe necessary capital for those persons recommended by the non-profit\nfoundation as reasonably qualified to manage a business. This is a\nmajor change in our program because It will call for some relaxation\nof our lending criteria. I have not gone beyond Philadelphia at this\ntime because I want to see what our experience is. I do have In mind,\nhowever, attempting a similar program In other cities which have a\nheavy Negro population.\nThe basic reasons for a special emphasis in the Negro busl-\nness community are rather obvious. There are 600,000 Negroes in Phila-\ndelphia, approximately 5,000 Negro-owned businesses, but only 7 SBA\nloans to those businesses In 102 years. It is well recognized In bank-\nIng circles that Negro businesses are extremely risky and financing is\ntherefore hardly available to potential Negro businessmen. Our ultimate\n- 2 -\nobjective, of course, Is to help develop a strong middle class among\nthe Negro community. This should help give that community not only\nleadership but a sound, stable social structure.\nFor the first time In the history of SBA I have appointed\nseveral Negroes to our National Advisory Council. I Intend to appoint\nmore. It may be that the President or someone In the White House acting\nfor the President would like to contact personally varlous Negroes for\nappointment to the Advisory Council. Jackie Robinson, for Instance,\nmight be a good appointment.\nThe Negro press In America will be covering our Philadelphia\nmeeting very closely and heavily. Please advise If you would like to\nhave a White House Identification In any way with this project. I\nshould be happy to prepare any message or letter. I am not advising\nanyone within SBA or the Negro community of this memorandum, In the\nevent you may have some other thought on this."
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