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BLACK METROPOLIS | BLACK CONGLOMERATE | BLACK MECCA

Updated: Mar 5, 2021



Black Metropolis

Though Chicago’s first permanent resident, Jean Baptist Point de Sable, was Black, there were few additional blacks in Chicago until 1840 when large numbers of runaway slaves began arriving in the “Windy City.” By the time the Civil War began in 1861, there were approximately 1,000 African-Americans living in Chicago. The first blacks to settle in Chicago were concentrated in the center of the city along the banks of the Chicago River. From the center of Chicago, the African-American population expanded in all possible directions. Blacks moved southward along State Street in a narrow corridor of land between the Rock Island Railroad and the south side elevated train. Blacks also moved westward along Lake Street and into the Near North Side’s“Little Hell” Sicilian community.

The majority of Chicago’s black population moved south where rents were cheapest, near the railroad terminals and Chicago’s segregated vice district. The outbreak of World War I increased African-American migration to Chicago. The war had stopped the flow of European immigrants to America.In addition, many immigrants returned home to fight for their native lands,increasing the need for workers in war related industries. In order to fill this need, Northern industrialists sent labor recruiters to the South inviting African-American workers to come north. Over 50,000 Negroes poured into Chicago between 1916 and 1920 to fill the need for labor. By 1920, 90% of Chicago’s black population was concentrated on the South Side in an area bound by 12th and 39th Streets and Wentworth Avenue and Lake Michigan. Chicago was the mid-western focal point of a great African-American migration.

As the terminus for the Illinois Central Railroad, Chicago was the North’s most accessible city for southern job seekers from the Mississippi Delta region. The Illinois Central Railroad Station, located at Twelfth and Michigan, was near Chicago’s new and expanding South Side black community. Just as Italian immigrants had settled around the Polk Street Station, where the railroad brought Italian immigrants from Eastern ports, black migrants sought housing in the area surrounding the Illinois Central Station.Chicago was also attractive to southern blacks because of the activities of the Chicago Defender newspaper. The Defender was widely read throughout the South and portrayed Chicago as a progressive town that supported a growing African-American community. In addition, Chicago exhibited other “pull” forces, which drew southern migrants including higher paying jobs, schools and an African-American “bright-light” (entertainment) district.

Coupled with the “push” forces existing in the South such as discrimination, economic hardship and a depressed cotton market, Chicago be-came an attractive place for southern blacks seeking a place in the industrial economy. Chicago’s South Side “Black Belt” grew to be the second largest Negro city in the world; only New York’s Harlem exceeded it in size. This black metropolis was a city within a city, seven miles in length and one and one-half miles wide, where more than 300,000 African-Americans lived. Here were colored policemen, firemen, aldermen and precinct captains, state representatives, doctors, lawyers and teachers.

In 1928, Chicago’s black community even elected an African-American congressman. Just as other immigrants before them, blacks moving to Chicago often settled among their own kind. Unlike other immigrants, however, segregation prevented second-generation blacks from moving from Chicago’s African-American communities. In spite of racial prejudice, Chicago was truly a “house for all people” wherein each ethnic group could find advancement through political mobilization, even African-Americans. Chicago’s highly organized “machine” politicians were willing to work with anyone who could deliver the vote and contribute financially to their political organization. Chicago probably boasted a greater degree of black participation in politics than any other city in the nation. In the early days of machine politics, there ward for supporting a successful candidate was jobs and graft. The historical record shows that this applied to the African-American community just as it applied to any other ethnic group. Early Chicago blacks were incorporated into both the First Ward political machine of “Bathhouse” John Coughlin and“Hanky Dink” Mike Kenna and the Second Ward organization of Republican Alderman William Hale Thompson.

African-Americans at this time were staunch supporters of the Republican Party – the party of Abraham Lincoln.Later, the expanding African-American community on Chicago’s South Side developed into an independent political force whose endorsement was sought by Republicans and Democrats alike. Chicago blacks learned early that the political life of the community was powerfully allied with the world of the saloon and the gambling house. And just as in other ethnic communities, an African-American underworld developed in Chicago’s black community to regulate criminal activity.

The black community’s earliest vice lord was John “Mushmouth” Johnson.Born in St. Louis, Johnson migrated to Chicago in 1875. After working as a waiter in the Palmer House Hotel and as a “floor man” in a downtown gambling hall, Johnson opened his own saloon and gambling house in 1890. Johnson’s saloon was located in the heart of “Whiskey Row,” which ran for two blocks along the west side of State Street, Chicago’s main thoroughfare. His gambling place was said to be unique because the players did not gamble against the house.

They gambled against one another, with the gamekeeper taking a part of every “pot.” In 1906, Johnson opened yet another gambling hall, the Frotenac, near Chicago’s infamous Levee red-light district. Described as the “Negro Gambling King of Chicago,” Johnson never gambled himself.He believed that “a man that gambled had no business with money.”


Part of Johnson’s secret of success was that he reportedly contributed to both the Republican and Democrat parties alike. This arrangement contin- ued until “Hinky Dink” Mike Kenna and “Bathhouse” John Coughlin took control of the First Ward. Through the usual formula of payoffs and delivering votes, Johnson rose to the position of “Negro political boss” in the First Ward organization of “Hinky Dink” and the “Bath,” thus ensuring immunity for his gambling operations. Johnson was not only the patron of black gamblers, but also held the distinction of being the “man to see” in Chicago’s Chinese quarter. He reportedly sold protection to over twenty Chinatown opium dens and gambling halls where Fan Tan and Bung Loo card games were played. In 1903, Chicago Mayor Carter Harrison revoked the license of Johnson’s Saloon in Whiskey Row. Evidence collected by the city council’s “graft committee” described Johnson as a “card cheat” who robbed patrons “stone blind” at his craps, hand faro and draw poker tables.


Witnesses told the committee that it was impossible to win at Johnson’s gambling hall. Even when a patron did win a pot, every effort was made to “skin” him of his winnings at another game before he left the resort. In spite of an unsavory reputation, Johnson began what became a long-standing tradition among African-American gangsters of contributing to blacks in need. His mother reportedly contributed money on his behalf to the Baptist Church and to help establish a home for African-American seniors. Pony Moore was another early black gambler and saloon operator. Moore owned the Turf Exchange Saloon and the Hotel De Moore resort in the Levee district. A member of the National Negro Business League, Moore was a black gambler who was often referred to as the “Mayor of the Tenderloin.”

Fond of wearing diamonds, including one padlocked to the front of his shirt, Moore was the “boss colored gambler and saloon keeper on 21st Street.”

Though a colorful figure, who had some influence over the black vote, Moore never rose to a position of political prominence. He is best known for his involvement in one of the Levee’s most remembered incidents. Moore was involved in a scheme to charge Chicago’s infamous Everleigh sisters with the death of Marshall Field Jr., heir to the department store fortune. Though it was commonly believed that Field was killed at the Everleigh bordello, the Everleigh sisters steadfastly denied any involvement in his death. During this same period, Robert T. Motts, Samuel Snowden and William Beasley also opened a tavern and gambling hall in Whiskey Row. In a very short time, their saloon became the resort of choice for black sporting men from Chicago and those visiting from other parts of the country. In 1890, Motts, who had been a porter in Mushmouth Johnson’s saloon, followed the migration of Chicago’s black community and opened a tavern and gambling hall further south on State Street in the Second Ward.

Bob Motts not only became known as a good “pay-off” for the police, but also worked to organize the black vote. Motts reportedly paid saloon patrons and local women $5.00 a day to assist in political canvassing. In return for his activities, Motts was able to place some forty black women in jobs at the city recorders office. He also ran a theatre named the Pekin in connection with his saloon. The Pekin Theatre provided family entertainment and was the only black owned theatre of its kind.36 In return for his political activities, Motts was able to obtain jobs for Chicago blacks and helped elect his protégé Edward Green to the Illinois legislature. Motts remained a political power in Chicago until his death in 1911.


Another saloonkeeper involved in politics at this time was Henry “Teenan” Jones. Born a slave in Alabama, Jones had been in the gambling business in Chicago since 1876.37 In 1895, he opened a gambling house in Chicago’s prestigious Hyde Park community that included dice, roulette and poker. His Lakeside Club, as it was called, catered primarily to white Chicagoans. Jones also ran two other gambling houses that catered primarily to blacks. One was located in the Windermere Hotel in Hyde Park and the other at the Chicago Beach Hotel. In 1910, a community organization known as the Hyde Park Protective Association, fearing that social resorts that catered to blacks would cast blight on the entire community, forced Jones to close both his saloon and his gambling halls. After leaving Hyde Park, Jones opened two clubs in the black Second Ward known as the Elite Number One and the Elite Number Two cafes.

Lomax described the Elite Number One as one of the most famous clubs in American history. The Elite Number One was one of the first cabarets to feature jazz music. The Elite Number Two was also well known. It be- came infamous as one of Chicago’s most notorious “black and tan” resorts. During the mayoral administration of Carter Harrison II (1911–1915), an order was issued to close all gambling houses in Chicago except those in black communities. As a result, many whites began to frequent black tav- erns including those owned by Jones. Additionally, Jones ran a column in Chicago’s African-American Defender newspaper entitled “Reminiscences From An Old-Timer’s Scrapbook.” While in the Second Ward, Jones became involved with black Second Ward Alderman Oscar De Priest. In 1916, De Priest organized a “colored voters club” that demanded contributions from local gamblers in order to sup- port upcoming elections.40 “King Oscar,” as the Chicago Tribune referred to De Priest, ran what was described as his “Tammany Club” from a real estate office at 35th and State. In 1917, De Priest was charged with conspiracy to permit gaming in the Second Ward by Cook County State’s Attorney Maclay Hoyne. Under pressure from the State’s Attorney, Jones became one of the chief witnesses against De Priest. Jones told investigators that De Priest received a monthly tribute of thousands of dollars from gambling houses that he protected in the “Black Belt.” Jones also testified that he had personally paid $2,800 in bribes to De Priest during a four-month period to protect his gambling clubs. Represented by none other than the famous attorney Clarence Darrow, De Priest responded that the money he had received from Jones represented campaign contribu- tions and not graft. Chicago’s black population resented De Priest’s indict- ment and held a prayer meeting on Chicago’s courthouse steps.


Because vice and corruption were common throughout Chicago, the black community felt that enforcement targeted at the black belt was unfair. The trial of city councilman De Priest clearly demonstrated that an African-American vice syndicate existed in Chicago and that payoffs from vice entrepreneurs to public officials were just as common in the black community as they were in other parts of Chicago. Black officials followed the pattern established by earlier machine politicians of collecting money from illegal operations in order to fund political activities. De Priest himself testified that he had fought the opening of the Beaux-Arts black and tan club because his political enemy Dan Jackson owned it. De Priest feared that Jackson would use gambling proceeds to fight him in his reelection bid. The onset of prohibition in 1920 further intensified vice activity on Chicago’s South Side just as it did in other parts of the city. Thirty-Fifth Street, between State and Calumet, the bright-light area of the black community, became a congestion of sawdust-floored gin mills fuming with jazz music. Here were found cabarets, nightclubs, gambling halls, prostitution, policy kings and black and tan clubs. Black and tan clubs provided locations for the intimate association of blacks and whites. Black men could be seen with white women and white men with black women. Though the Chicago Com- mission on Race Relations reported that mixed couples only accounted for 10% of the patronage, the mingling of the races was used to characterize all associations there.

The popularity of black nightclubs among all racial groups grew during prohibition because of the onset of the jazz age. In fact, Chicago residents could often be heard stating that they were “going slumming” referring to visiting bars and nightclubs in the black community. Imported from New Orleans, the new “jass” music was renamed “jazz” when it was introduced in Chicago. This new name was reportedly derived from a slang term that was used to describe fornication in Chicago’s 22nd Street brothels. Allsop argues that the popularity of jazz was a by-product of prohibition. The underworld’s speakeasies, together with legitimate dance halls, thrived on customers with flasks in their hip pockets and provided a booming market for this new music. South State Street, in the heart of the black community, was lined with cafes where jazz was played – the Elite, the Pekin, the Dreamland, the Panama, the Rose Garden, the Edelweiss, the Open Air Gardens and the Verdome and Lincoln Theaters. State Street from 26th to 39th was referred to as “The Stroll.” African-American poet Langston Hughes described South State Street as:


'A teeming Negro street with crowded theatres, restaurants and cabarets. And excitement from noon to noon. Midnight was like day. The street was full of workers and gamblers, prostitutes and pimps, church folks and sinners. The tenements on either side were very congested. For neither love nor money could you find a decent place to live. Profiteers, thugs and gangsters were coming into their own.'


Kelly argues that white gangsters ran the better-known nightclubs in many African-American communities.55 This was not the case in Chicago. For example, Kenny writes that a few of Chicago’s South Side clubs were owned by whites who hoped to attract a primarily white audience with African-American entertainment. However, the leading clubs in which famous black ragtime jazz musicians played were owned and/or managed by black Republican Party organizers, who used the music to attract the attention of potential black voters.



Using Burgess’ Concentric Circle Theory as a model, Frazier argued that Chicago’s South Side black community expanded southward and, through a process of residential selection, different elements became segregated in different zones within the community. As such, Frazier divided Chicago’s black belt into seven zones. He argued that the vice activity centered around Thirty-Fifth and State in the heart of Zone III, attracted the Bohemian, the disorganized and the vicious elements of the black world thus affecting com- munity life. African-American community leaders stated that the attractions of South State Street were a threat to the moral fiber of the black community. They also argued that the “gay life” – hanging out on street corners, throwing loud parties, dressing in the latest risqué fashions and enjoying the bright lights of the city’s night life – was giving Chicago blacks a bad name. Many South Side Chicago blacks lived in close proximity to the Levee, which also contributed to vice conditions in the area. After the break-up of the segregated vice district in 1912, many prostitutes continued to operate clandestinely in the near South Side, which was predominately black by this time. For example, the Chicago Daily News reported that almost 3,000 women engaged in prostitution in the area between 16th and 26th Streets, from Stewart to Lake Michigan. Landesco also provides evidence that a small number of Levee regulars reestablished their saloons in the area.60 Both vice entrepreneurs and the poor alike were attracted to slum areas where the rent was low and the community was not organized to prevent criminal activity. In addition, the corrupt power of the Second Ward allowed vice operations to continue unmolested. As a result, Chicago’s black population became commonly associated with vice activity. By 1921, Chicago’s South Side black community was struggling with an epidemic of gambling and commercialized vice. An exposé by the Chicago Daily News revealed that gambling houses, disorderly resorts, booze-selling cabarets and saloons flourished in many parts of the Second Ward and were overflowing into parts of the Third and other neighboring Wards. The Daily News reported that all were operating under the protection of political lead- ers allied with city hall and that Dan Jackson was the “general manager” of Chicago’s South Side black vice syndicate. Daniel McKee Jackson was the most powerful African-American vice king that the black community in Chicago has ever known. Jackson, a college graduate, came to Chicago from Pittsburgh in 1892. Working with his father, Emanuel and brother, Charles, he opened a funeral home in the Second Ward.

Jackson, a friend of Bob Motts, married Motts’ sister Lucy and inherited Bob’s estate after his death. Ostensibly an undertaker, Jackson ran several gambling halls including one in his undertaking parlor and another in the Pekin Theatre building. Jackson at one time was also a candidate for state representative, but was never elected to the office. Jackson’s vice syndicate collected an estimated $500,000 each year from gamblers and booze sellers in the Second Ward alone. Graft from the neighboring Third Ward and the adjoining districts was placed at an additional $200,000. Carter Hayes, Jackson’s secretary, collected the protection money, which was reportedly 40% of the net proceeds of each illicit game. In addition, many poolrooms, saloons and South Side cabarets were operating craps games, poker games and blackjack while selling illegal whiskey and gin and were all expected to contribute to Jackson’s syndicate. Jackson was reportedly summoned to Chicago’s City Hall during the newspaper investigation and ordered to close all South Side gambling houses. After a two month respite, Jackson began making the rounds of South Side gambling haunts assuring players and operators alike that things were getting back to normal. In fact, many of the gambling houses that were listed by the Daily News were already back in business. When questioned about the crackdown, Jackson reportedly told a crowd on a South Side street that “The Daily News nor anybody else will ever stop my handbooks from operating.”

The Chicago Daily News exposé proved the strength of black organized crime in Chicago and revealed intimate details about the connection between vice and politics. Dan Jackson told his followers that if Mayor Thompson paid any attention to the Daily News exposé, he would quit politics. Jackson’s Third Ward lieutenant, Sam Elliot, told police detectives who had raided the Lorraine Gardens that he “kicked in” $3,200 to Mayor Thompson’s last campaign with the understanding that he could run “wide open” if Thompson was elected. Elliot threatened arresting officers that they would be transferred “out in the sticks” before they had a chance to prosecute his people because he was “strong down in city hall.”

On June 5, 1922, the Chicago Daily News reported that Dan Jackson had opened the “biggest gambling house” in Chicago. The opening of this gambling hall marked the return of Jackson to power. In addition, there were at least twelve other gambling houses operating under Jackson’s supervision that paid as much as 50% of their profits to Jackson’s syndicate. The Chicago Daily News reported that the lawless days of the famous (Levee) red-light district, where the professional gambler prospered under the approving eye of the police, have been restored in Chicago’s South Side black belt by the Thompson-Lundin political machine.One of the major reasons for the success of Chicago blacks in controlling vice and gambling in their community was their political connection with William Hale Thompson, Republican mayor of Chicago. Thompson had a long history of involvement with the black community.


Thompson’s first political office was that of Alderman of the Second Ward. He was elected to this position in 1900. The Second Ward, located directly south of Chicago’s central business district, contained the largest concentration of blacks in the City. Blacks in 1900 comprised 16.6% of the ward’s population and 1.9% of the city’s total.70 By 1919, the Second Ward was over 70% black of whom 72% were eligible to vote. Citywide, Thompson received 78% of the African-American vote in the 1919 mayoral election.

Thompson treated blacks more equitably than any other mayor of the era and delivered jobs to African-Americans in return for their political support. In fact, so many black Americans were appointed to city jobs during his first term as mayor that Thompson’s opponents began calling city hall “Uncle Tom ’s Cabin .” Chicago blacks hailed Thompson as the “Second Abraham Lincoln.” Deprived of the vote in the South, Chicago’s new immigrants saw the ballot box as a symbol of their new life in the North and rushed to support the local Second Ward politician who had treated them in a respectable fashion. Thompson recognized the right of blacks to self-determination and assisted them in electing African-Americans to local offices. He also recognized that black gamblers supported local political officials just as their white gambling counterparts supported political leaders in other areas of the city. The Office of the State’s Attorney, at the prodding of the Juvenile Protective Association, began another investigation of vice conditions on Chicago’s South Side in 1923.74 Once again, the word was passed down from City Hall to close all disorderly resorts, illegal cabarets and gambling houses. The only one found to openly disobey the edict was Dan Jackson. His “Racetrack” resort on South State Street, one of the biggest gambling houses in the city, continued to operate without interference.

The remainder of Jackson’s syndicate did not stay out of business for long. William Bass, operator of two gambling houses, complained to the Chicago Daily News upon reopening his resort that the upcoming 1923 mayoral election had caused the hand of the “graft collector” to weigh heavily on his business. Bass stated that he was normally required to surrender 20% of his profits as graft. The approach of the mayoral election had caused the toll to increase to 25%. The stakes were so high in the 1923 election that Jackson himself was accused of invading several Second Ward polling places intimidating voters, election judges and police officers alike. William Hale Thompson did not seek reelection in 1923. As a result, Jackson had supported William Dever against the Republican candidate at the urging of democratic politicians who believed they could intercede with Dever to protect Jackson’s gambling operations. The resulting election of Dever, however, brought Jackson’s protection syndicate to an end. In spite of the efforts of Democratic leaders who had sought Jackson’s political support, he was not allowed to conduct his rackets as long as Dever was mayor. When his advances were spurned by the Dever administration, Jackson and his supporters threatened to “put the politicians out of business,” which in fact they did when in 1927 South Side blacks helped defeat Dever and returned “Big Bill” Thompson to the mayor’s office. The reelection of Thompson was the signal for the reopening of South Side gambling dens. Dr R.A. Williams, opponent of Oscar De Priest for Republican Committeeman in the Third Ward, charged that gambling and the policy racket had become a plague on the black community. Men and women hardly able to support their families spent their last dimes on policy. The epidemic of policy gambling that was the scourge of Chicago’s black belt was the result of a political deal whereby Dan Jackson overwhelmingly delivered the African-American vote to William Hale Thompson.


In the 1927 mayoral election, 91.7% of blacks in the Second Ward voted for Thompson. Jackson had proven the power of the black vote. He had “swung” the last two elections for mayor. The price Jackson demanded was the privilege to operate gambling in the Second and Third Wards. Chicago’s black belt gamblers were not happy with the return of Jackson. Under Jackson, the district had been drained financially. Though gamblers were allowed to operate openly, they were compelled to pay out more, under the “iron heel” of Jackson, for political and police protection than they had taken in. Much of the money was used to support Thompson’s “America First” politicians who were running in the April 1928 primary elections. One report indicated that as much as $1,000,000 was collected.


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Homer B. Roberts (1923 Kansas City - Hupmobile)

There is little doubt that Homer B. Roberts was truly an extraordinary man with a multitude of talents, both in business and in the military. Born in 1885 in a small rural community outside of Springfield, Missouri, he was well educated, receiving a degree from Kansas State Agricultural College. It is known that he also spent time at the Tuskegee Institute. In the early 1900's, it is recorded that he worked in the retail car business, but no other specifics were located.


With the start of World War II, Roberts enlisted (1917), believing it 'was an honor for individuals of the Negro race to fight for and protect the country." He served in France in some of the heaviest battles (Argonne) and was commissioned a First Lieutenant in the Signal Corp., the first of his race to receive such a rank.

When he returned to Kansas City in 1919, Roberts began brokering new cars within the black community. The white dealers provided him the opportunity, believing that "blacks could best sell to blacks" and sales would be incremental.


Roberts understood the power of advertising and began purchasing ads in The Kansas City Sun, the local and then prominent African-American newspaper. His advertisements were 'cutting edge' efforts for the times and his business grew. In 1921, he acquired new sales offices and hired two salespersons to meet the growing demands of his business.

Roberts made history in 1923. Believing he needed larger facilities to service his businesses, he had constructed a 9,500 square foot building which he called the Roberts Company Motor Mart. This facility not only serviced his car operation, but provided additional retail space for black-owned businesses – one of the first retail shopping centers in the country.






With his success, many small, niche manufacturers entered into sales agreements with Roberts. Such auto companies were Hupmobile, Rickenbacker, Whippet, and Marmon. He also had a distributorship arrangement with a local Oldsmobile dealer. He advertised heavily in The Kansas City Call, the then dominant African-American newspaper in Kansas City. He remained in business at this location until 1929.


In 1941, at the age of 56, Roberts re-joined the military and spent four years in the Army during World War II. He was discharged with honors and returned to Chicago where he worked in media/public relations until his death in 1952. This brief summary does not do justice to the extraordinary business talents of Roberts, but it can be well documented that he was one of the first African-American retailing giants.


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Dan Gaines (1936 Chicago - Ford)

In the research conducted in Chicago, some information was discovered about the business life of Dan Gaines. It is known he was born in Tennessee and the family moved to Chicago sometime in the 1920s. As referenced earlier, there were advertisements in The Chicago Defender announcing the Grand Opening of Dan Gaines Motor Sales (Authorized Ford Dealers-August-1936) located at 4533-41 Cottage Grove.


Such advertisements had been noticed by Nathan Thompson that led to the research to determine which African-American was the first to be awarded a new car franchise.

It is evident that business was good. In July of 1937 Gaines moved into larger facilities at 5025 Wabash Avenue where he remained in business until 1940. As you tour the existing facility structure, it can be concluded that Gaines had sufficient space for both new/used car sales and adequate service capacity. His staff was African-American and focused on selling into the black community.


Although there is no confirmation within the Ford Motor Company franchising files, there is sufficient evidence to confirm that Gaines was an authorized Ford dealer. In all of his many advertisements published in the Defender in the late 1930's, he often referenced the fact that he was "America's Only Authorized Race Ford Dealer".


As you review his advertisements, you note the pictures of the facilities included Ford authorized signage which would have required company approval. His ads often were those prepared by the company for insertion in local press and his statements about race support were 'true' based on available records. Importantly, if he had not been authorized, some of the 60 Ford dealers in the Chicago market would have strenuously objected to his marketing into areas in which they also sought business. Putting it all together, it can be concluded Dan Gaines was the first franchised Ford dealer.





It was also noted that Gaines invested in numerous other business enterprises. For example, he operated a loan company for many years and was in the real estate business. Research confirms that he owned a hotel on the Southside of Chicago and sold and serviced juke box machines in local bars and restaurants. As a result of the latter, Gaines was often referred to as the "Juke Box Man". As stated, although not much was written about Dan Gaines, it can be documented he was a man of diverse and extensive business talents.


When Gaines died at the age of 92, his Death Certificate identified his "Usual Occupation" as "Retired" (typed in). "Retired" was crossed out and replaced with the hand-written word "Merchant". In the box showing "Type of Business" was "Self Employed". It is suggested these descriptions well describe the business talents of Gaines. It is also appropriate to conclude just that: Dan Gaines was a successful entrepreneur who achieved considerable business success in a variety of enterprises, including the retail car business as a Ford dealer.


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Ed Davis (1940 Detroit - Studebaker)

It was special meeting with and extensively interviewing Ed Davis; an icon among African-American business entrepreneurs. When we met in his office located in the Penobscot Building (downtown Detroit) which he retained for many years after he had left the retail car business, or at his home (with his wife, Mary Agnes), he discussed in great detail the long journey from his roots in Shreveport, Louisiana (1911) until his decision to retire as a Chrysler-Plymouth dealer in Detroit in 1971.


Ed Davis had not accumulated the kind of wealth that many successful car dealers had due to product, timing, market conditions and other factors. But it was evident that he understood the importance of his tireless effort to open doors for other African-Americans, not only in the automotive sector, but in government and other business entities as well. When Ed Davis and his family arrived in Detroit in the early 1930's, he found work at local garages and eventually went to work in the local Dodge factory. It was there he made contact with a local dealer and began to sell cars as a "bird dog". Eventually, because of his success, he was given an office on the second floor of the dealership but the constant race issues and other pressures from the dealership employees caused Davis to move out on his own.


Scrapping up every cent he had, Davis located a facility at 421 East Vernon Highway in Detroit and Davis Motor Sales, Inc. became a reality on December 4, 1939. With a small staff, Davis pursued the used car business and brokered new cars. It was at this time that the local Studebaker dealer for the Detroit market concluded that Davis could sell incremental units for him and in 1940, Ed Davis made history – he was awarded the Studebaker franchise. With less than a desirable product line, a highly competitive market, and being excluded from the 'club', Davis struggled. Studebaker was in a tailspin and finally, in 1955, closed its doors. Davis remained in the used car business and sought out the Big Three but the answer was always the same; "we have nothing, we'll call you when we do."


In 1957, Davis became a sub-dealer for the local Ford dealer (Floyd Rice) which lasted for about two years. But, again, because of racial issues, he was constantly under considerable pressure. As a result he returned to selling used cars. In 1963, while attending a newspaper media event, Davis was introduced to Chrysler management. The decision was made to appoint Davis as a dealer at a location within the confines of the city of Detroit. A market area was carved out that was primarily African-American with low income and an unemployment rate of 45 percent. But Davis knew the market and believed he could be successful.




On November 11, 1963, Ed Davis was appointed a Chrysler-Plymouth dealer, the first African-American to be awarded a Big Three franchise in the post World War II era. He remained in business until 1971. Faced with labor problems, a tough competitive environment and financial problems, he resigned. Following his retail business, Davis immersed himself into a number of community activities, particularly Detroit's Department of Street Railroads. During this period, he wrote three books about his automobile experiences; "One Man's Way – An Autobiography (1977)", "A Dilemma of Equality in the World of Work-(1985)", and "Who's Innocent – The Automotive Market (1988)", which may be available from the Charles H. Wright Museum of African-American History in Detroit.



As has been noted, Davis received numerous awards and honors for his professional and personal achievements over the years. In 1969, he was the first African-American to receive Time Magazine's Quality Dealer Award. In 1996, for his business and community services and his contributions spanning a period of 30 plus years in the retail business, Ed Davis was the first African-American to be selected as a member of the industry's Automotive Hall of Fame.


Ed Davis was an icon with considerable entrepreneurial skills, a distinguished African-American pioneer.







http://aacardealers.com/men.html#davis

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Robert H. Nelson, Jr. (1961 Chicago - MG/Peugeot)

Little has been written about the exploits of Bob Nelson but in the articles which are available, one finds extraordinary achievements, both in the military and in the car business. Born in Pittsburgh, Nelson joined the Air Force in the early 1940's, but like all blacks interested in flying at the beginning of World War II, they were not allowed to do so.


Subsequently, the Air Force established its own, but separate, "Black" air force, the now well-known Tuskegee Airmen. Nelson received his wings in 1943 and was assigned to the 332 Squadron. During combat in Italy in the 1940's, Nelson, in a P-39, flew a total of 130 missions and received numerous decorations. For those interested in reading more about the "Black Knights", a book published by Homan and Reilly is recommended.


After World War II, Nelson attended the University of Pittsburgh and received a Bachelor of Science degree. With the Korean War in progress, he was then brought back into the Air Force where he flew 66 combat missions. After being discharged, Nelson moved to Chicago where in the late 1950's, he opened a repair and service business located at 6052 S. Cottage Grove Avenue. After building a reputation, he was approached by niche foreign auto manufacturers, MG and Peugeot. With a minimum investment, Nelson was awarded their franchises. He also acquired the Honda Motorcycles franchise.


Because of his experience and auto retail background, an opportunity presented itself in 1967. Ford Motor Company was looking for a replacement for the Ford dealership located at 7626 S. Stony Island Avenue on the Southside of Chicago. The decision was made to team up Nelson with the legendary Chicago Cub, Ernie Banks.



On August 1, 1967, Nelson-Banks Ford Sales, Inc. became a reality. With Banks' reputation and Nelson's business acumen, it was concluded the partnership would be ideal for the market. However, in spite of reasonable sales volumes, a declining market and an increasing cost of doing business forced Nelson-Banks to resign (1971).



Ford Motor closed the dealership. The partnership had operated under Ford's Dealer Development Investment Plan and their investments were returned. In 1974, Nelson was appointed the Chevrolet dealer in Maywood, Illinois and operated the dealership for several years. He then acquired a Wynn's Parts-Service franchise which he managed until his death in 1984. History will record that Robert H. Nelson, Jr. was a 'top gun" in the air force and a successful 'risk taker' in the world of business.








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Robert P. Neal (1962 Chicago - Triumph)


In his twenty four years in the retail car business, Bob Neal achieved a number of firsts and special distinctions. As you review his business career, it is evident that Bob Neal was a 'risk taker' with excellent instincts for business.


Born in Texas, he attended Houston Tillison College in Austin, Texas where he graduated in 1954. After serving two years in the military, Neal moved to Chicago and held a number of jobs; e.g. drove a bus, school teacher etc. But with the influx of import vehicles, he believed there would be a need to service these 'unique' vehicles and decided to open a service repair operation with a focus on Renaults.


Sometime in early 1962, Neal was contacted by British Car to determine his interest in representing them (Triumph) in his market. With a total investment of $20,000, Bob Neal opened Chatham Motors at 7700 Cottage Grove on the Southside of Chicago. Although the volumes were small, it provided credibility to his operation. It is a well known proverb that 'success breeds success' and so it was with Bob Neal. Subsequently, he was contacted by Toyota which was having difficulty in finding existing dealers to represent them because of their product reputation and the fact they were an import.



After a visit to Japan, Neal stated that "Frankly, I was impressed with what they were doing, and decided to give it a shot, one of the best decisions I ever made." In August 1967, he was awarded the Toyota franchise, the first African-American to have done so. With the energy embargo of 1974, the country turned to fuel efficient vehicles. Toyota cars were in high demand and Bob Neal was well positioned to meet the needs of his consumer base. In July of 1973, when he learned the Pontiac dealership in his area was available, Neal acquired it and dualed it with his Toyota operation. Although both GM and Toyota were not happy with this decision, he realized it was the only way to maximize his profit opportunities – and he did just that with his many import lines.


In 1976, he was offered the Jaguar franchise and took it. Again, very small volume but helped build the reputation of his business. And in 1978 when Dodge became available, Neal acquired that franchise also. At the same time with the growing interest in import franchises, Neal took on a number of niche import makes, e.g. Simca, Sunbeam, Roots Group.




The next major acquisition occurred in February 1979 when he acquired Honda. This enabled him to purchase a second facility on Stony Island which he named Competition Motors. He was the first African-American to represent Honda albeit by only thirty days as the Wilson's in Detroit received a Honda franchise in March of 1979.


With operating businesses that required a 24-7-365 commitment, and having achieved considerable success, Bob Neal sold his franchises over a two year period (1985-1986). After 24 years in the car business, it was time to move on.


History will record that Robert P. Neal was the first African-American car dealer to become a multi-franchised dealer in the post World War II era at a time when African-Americans were just beginning to make inroads into the retail car business.






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C. G. Hairston, Sr. (1966 Danville Va. - Fiat)

Curnel George Hairston, known as "C. G." among friends and associates, has the distinction of being the longest tenured African-American new car dealer having spent more than 40 years being a dealer principal. Very little, if anything, has appeared in the black media about his successful endeavors, but when interviewing "C. G.", you understood that his reputation of having a 'bull dog' attitude about business was recognizable. It was evident that he just went about his business in spite of racial and other issues negatively impacting his business.


Born in Cascade, Virginia, Hairston joined the Army and upon his return, he made the decision to go into the used car business. He was 22 years of age. In the Spring of 1955, he obtained a used car license and with $1,000, began selling used cars in both Cascade and Danville. Hairston remembers vividly that "every time I would drive one of my cars to a customer in Danville, I would be pulled over by the local police wanting to know where I had gotten the car." It was part of the normal pressures a black had to endure doing business.



Nevertheless, business was growing and as a result, in 1959, Hairston opened a second lot in Danville. Over a period of time, he realized that it would be beneficial to consolidate both operations and in 1963, he located a building in Danville which included a showroom and service stalls. There was sufficient land to hold an expanded used car inventory.


In 1966, Hairston was contacted by Fiat. He concluded that for an investment of $6,000 for signs and parts, it was worth the risk and subsequently signed their sales and service agreement. Although Fiat was not a car that had great sales appeal in Danville, having a new car franchise helped his image in the market.



But the next step was an important one. When the Volvo representative for the general area contacted him in 1970 about adding Volvo to his operation, Hairston elected to do so and retained the franchise for more than 30 years. Volvo had a sound reputation and again, the incremental gross and service business helped benefit the dealership. Although Fiat and Volvo were small volume lines, they gave 'Hairston Motor Sales" an up scale reputation in the Danville market that complimented his used car business.


During this period, C. G.'s son, Gary, joined the business and has been an integral part of the business for many years. Also, using the dealership as the base, Hairston invested in a number of other business activities; e. g., real estate, a radio station, and an oil company. He noted that all endeavors were within the Danville general area which enabled him to keep close contact with all his businesses.


When asked the secret to his success, Hairston responded by saying that his motto was rather simple: "I tell my customers that I'm going to sell you a good car, I'm going to give you good service, and I'm going to make a little money doing it." It worked for C. G. Hairston, an African-American new car pioneer.


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Albert Williams Johnson (1967 Chicago - Oldsmobile)

Al Johnson was a giant among African-American new car dealers and helped open doors for many others to follow. For twenty-eight years, he was both an Oldsmobile (1967-1971) and Cadillac (1971-1995) dealer, the first African-American to hold both of these GM franchises. His story is one of perseverance and vision and 'making a difference' in a number of areas for black dealers who followed.


Born in St. Louis, Johnson acquired a degree in hospital administration. Believing he could make more money pursuing other business opportunities, he turned to the new car business. In 1954, he was hired by Noting Oldsmobile in Kirkwood, Missouri on the basis that "I could not sell from the dealership but would have to sell within the community" Again, the belief being held by the white dealer that "blacks could best sell to blacks." He was not permitted to sell from the dealership premises.



Johnson accepted the challenge. It wasn't long before Johnson earned the reputation of being the 'salesman who sold from a briefcase" and he was highly successful in doing so.

With continuing personnel and racial problems at the dealership, Johnson moved to Brock Oldsmobile in 1962 and continued his selling practices. It was here, he met representatives from Oldsmobile Division who encouraged him to stay in the business. With this support, Johnson concluded that it would be just a matter of time before African-Americans would get the chance to become dealers. He was going to be ready when it happened.


The year was 1967. Johnson was contacted by the Chicago Oldsmobile Regional Sales Office and he was offered the opportunity of replacing Ray Oldsmobile located at 74th & Halstead in Chicago. Although the dealership had been losing money, it was believed that Johnson, with his 14 years of selling, could make it work. Johnson agreed. On August 1, 1967, Al Johnson became the first African-American to be awarded a new car franchise by GM (Oldsmobile). After rebuilding the dealership organization and making it successful, Johnson was offered the opportunity of becoming the Cadillac dealer in downtown Chicago, an opportunity he couldn't pass up. On June 1, 1971, he was officially franchised. (It is appropriate to note that the replacement for Johnson at his Olds dealership was another African-American, Rufus Dukes, who was also successful.)


Within a short period of time, Johnson received permission to relocate his Cadillac operation to Tinsley Park, about 20 minutes from his existing location, where he built state-of-the-art facilities on five and half acres of prime property. He remained there until 1995 when he sold the Cadillac business concluding 41 years of selling cars and trucks (23 as a salesman and 18 as a dealer). Importantly, Al Johnson also made a number of major contributions while he was a dealer. He was a primary catalyst for industry African-American dealers coming together in 1970 to establish the first minority dealer organization (NBADA). Working with GM management, he suggested the need for minority dealer training.


This lead to the establishment of GM's Minority Dealer Training Academy, an 18 month training program, which provided minorities a compacted view of the retail business. This training concept, launched in June of 1972, became the standard in the industry.


In 1974, Johnson was recognized by Time Magazine as one of the top dealers in the country and honored with its prestigious Quality Dealer Award. And lastly, his involvement in numerous business and philanthropic aspects of the Chicago community are extensive - Al Johnson gave back to the "Windy City" community which had supported him as a dealer. When one reads the full business life experience of Albert Williams Johnson, you recognize that he was truly an African-American business icon - an individual who made a difference.


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