Memo RE: Levitt Discrimination Case

    N. A. A.C. P@ecan Derense ann Enuca@@a. Fun, we. 
107 West 43rd Street, New York 36, N. Y. 

JUDSON 6-8397 

ARTHUR B. SPINGARN “ Executive Officers 

seeds THURGOOD MARSHALL 
HON. HUBERT T. DELANY / Director and Counsel 
ELEANOR ROOSEVELT t SAREER TS GABE 

. CHANNING H. TOBIA: JACK GREENBERG 
ig Uecmee CONSTANCE B, MOTLEY S 
pence Wape ee MEMORANDUM Aaisticet Cann 

Sertory a ARNOLD deMILLE 
ROY WILKINS 

ALLAN KNIGHT CHALMEI 
Tre 

‘Assistant Secretary 

RS 

TO: City Editors February 23, 1955 

FROM: Arnold de Mille, Director 
Press Relations 

RE: Levitt Discrimination Case 

Builders Levitt and Sons, Inc, will go into Federa2 Court 
Monday morning, February 28, at 10:00 a.m. to seek dismissal of 
the discrimination suit filed against them in behalf of six Negro 
veterans who were refused the right to buy homes in the new 
Levittown development in Bucks County, Pa, 

The suit was filed against Levitt and Sons on January 13, 
1955, in the federal district court in Philadelphia by attorneys 
for NAACP Legal Defense and Educational Fund. It charged the 
firm of Levitt and Sons with using the federal government's pro~ 
gram of mortgage insurance and at the same time refusing to sell 
homes to Negroes, It asks the court to issue an injunction 
restraining the developers of Levittown, Pa. from discriminating 
against a person because of race or color in the sales of homes 
as long as the developers continue to use this federal govern- 
ment's aid. 

The suit also asks that the court restrain Levitt and Sons 
from refusing to sell to Negroes on the ground that Levittown is 
a town and levitt's policy of barring a person from the not yet 
completed Bucks County community because of race or color is state 
action in violation of the Fourteenth Amendment and the federal 
Civil Rights Statutes, 

When completed’, the Bucks County Levittown development will 
consist of some 16,000 small homes and will be sold to individual 
buyers whose mortgages will either be insured by the Federal Hous- 
ing Administration or guaranteed by the Veterans Administration, 

Further, Legal Defense lawyers for the 6 Negro veterans argue, 
Levitt has a monopoly on all new construction in the new community 
and serves the town of Levittown in the same manner as a public 
utility. Therefore, the builders should not be permitted to con- 
tinue their un-American and anti-Negro practices, 

Contributions are deductible for U. S. Income Tax Purposes 

Public Relations 



Named in the suit with Levitt are Norman P, Mason, 
Commissioner of the Federal Housing Adninistration; William A, 
Kelly, Director of the Philadelphia Insuring Office of the FHA; 
Harvey V, Higley, Administrator of Veterans Affairs, and Charles 
E, Engard, Director of the Loan Guarantee Section of the 
Philadelphia Regional Office of the VA. 

The 6 Negroes in whose behalf the litigation was brought 
tried to purchase homes in the Bucks County development as early 
as 1951 when Levitt and Sons opened their first model home and 
as late as June of 195. They are: Mr, and Mrs, Arthur L. 
Johnson, Mr, and Mrs, Andrew W, Boyd, Mr. and Mrs, Lawrence 
Patterson, Mr, and Mrs. Austin Moore, Mr. and Mrs, James Bryant, 
and Mr, and Mrs, Watson Earl Ruffin. 

On Tuesday, February 15, Levitt and Sons filed a motion 
with the Court asking that the suit acainst them be dropped on 
the grounds that the federal court has no jurisdiction over the 
case, Levitt's lawyers contend that the issue involved is for 
the state to decide and that the case should be thrown out of the 
federal court, 

However, in their motion for dismissal of the case the law- 
yers for Levitt and Sons did not deny the charges that they 
discriminate against Negroes or any other persons because of race 
or color, 

At the same time the complaint against Levitt was filed, 
NAACP Legal Defense attorneys filed a companion suit which sought 
to restrain the agents of FHA mortgage insured apartment housing 
developments in Philadelphia from discriminating because of race 
or color, 

This action was brought in behalf of a Negro family and 
other Negroes who had tried to rent but were refused solely because 
of their race. The family of J, Ralph Pearson was refused an 
apartment in the Olmey Gardens Apartments at Chew and Wister 
Streets by the renting agents. 

Named in this suit along with the agents were FHA Commissioner 
Mason and Mr. Kelly of the Philadelphia Insuring Office. 

On the same day Levitt's attorneys filed their motion for 
dismissal, the owners and agents of the Olney Gardens development 
agreed to rent to the Pearsons and any other qualified Negroes 
who apply for apartments. On Monday, February 21, the Pearsons 
received their key and are expected to move into the Olney Gardens 
apartments on March 1, 

These two cases are significant because they are the first 
court actions in the East brought to open up FHA mortgage insured 
private housing developments and apartments to Negroes and other 
minority groups. 

-2= 



NAACP Legal Defense attorneys in both cases are Thurgood 
Marshall, Director-Counsel of Legal Defense; Constance Baker 
Motley, Legal Defense Associate Counsel; Walter A. Gay, Jre, 
member 
Branch 

of the Legal Redress Committee of the Philadelphia NAACP 
and David E, Pindy of Philadelphia. 

Background on Levitt and Sons, Inc, 

Levitt and Sons are the developers and builders of the 
Levittown, Long Island, N. Y. as well as the Levittown, Pa. com- 
munity. William Levitt, head of the firm, is reported to be 
"the world's biggest builder of private homes," He has consistently, 
despite pressure from many sources, refused to sell to Negroes, 
In many quarters he is regarded as the arch proponent of discrim- 
ination against Negroes in housing. 

The Long Island community was developed in 1947. As the 
development progressed and homes went on sale, Negro veterans 
tried to purchase but were turned down, 

To perpetuate his anti-Negro policy, Levitt and Sons 
inserted in their leases, with respect to those homes leased, a 
clause which specifically stated that the homes could not be 
occupied by non-caucasians, In 1948, after much pressure, the 
FHA required Levitt to drop the clause from the leases. 

lawing 
Following the U, S. Supreme Court's 1948 decision out- 
the enforcement of racial restrictive covenants, the 

National Association for the Advancement of Colored People 
appealed to the President of the United States to bar FHA mort- 
gage insurance on any restrictive property. The FHA then amended 
its rules to prohibit mortgage insurance where there was "recorded" 
a racial restrictive covenant. 

Levitt 
However, this amendment was interpreted by builders like 
and Sons as meaning that as long as there was no restric- 

tive clause in the lease or deeds, they could receive government 
aid and still continue their racial and religious discriminatory 
policies and practices, 

At the 
policy 
Island 

Construction of the Bucks County community began in 1951. 
very outset Negro veterans applied to purchase homes, The 
of discrimination against Negroes practiced in the Long 
community was carried over here. 

From 198 to the filing of the suit against Levitt on 
January 13, 1955, continued negotiations with FHA officials were 
carried on by NAACP and other groups to persuade the FHA to re- 
quire that there be no discrimination against any qualified 
applicant because of race, creed, color or national origin in 
housing facilities using the federal government's program of 
mortgage insurance and VA guarantee of loans to veterans, 

Soe 



While the Long Island community was still in the stage of 
developmens, the government of Israeli was giving serious con- 
sideration to inviting Levitt to build homes in that country, 
but a strong protest was lodged by Walter White of the NAACP, 
The invitation was later withdrawn, 

In a meeting with NAACP representatives and other leaders 
in October 1952, on the Levittowm, Pa. development, Levitt spe- 
cifically stated that he "will not sell to Negroes," 

The argument on Levitt's motion for dismissal takes place 
in the U. S. Court House, Ninth and Chestnut Streets, Philadelphia, 

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