The Unrevealed Cause Behind Urban Deterioration: An Engaging Opinion

In December 1967, an extraordinary two-part series was published in the News American by DeFilippo, unveiling Baltimore’s influential establishment. The series exposed the interconnected networks of the city’s five major banks, top law firms, The Baltimore Sun, and major corporations:

Referred to by various names like the Power Elite, the Status Seekers, the Organization Men, or the Establishment, this exclusive and interconnected group of 133 businessmen and lawyers governed Baltimore, its government, commerce, culture, education, and social institutions.

At the apex of Baltimore’s power structure emerged a handful of individuals who dominated this select corps of overlapping corporate agents.

Over fifty years later, DeFilippo reflected upon the fate of Baltimore’s establishment in his essay for Maryland Matters titled “When Powerbrokers Ruled Baltimore.”

DeFilippo conveyed, “Today, the captains of industry and the institutions they headed are all gone. The banks, law firms, insurance companies, and major industries have either vanished or been assimilated by larger out-of-state entities, or as the aging titans faded away, their heirs chose to cash in.”

DeFilippo noted that The Baltimore Sun was acquired by non-locals and “the five major banks – Mercantile, Equitable, First National, Union Trust, and Maryland National – were all absorbed by out-of-state behemoths. The city’s two largest law firms, Venable, Baetjer & Howard, and Piper, Marbury, joined forces with even larger national law firms.”

The Baltimore establishment, akin to other city establishments, was marred by conflicts of interest, self-serving acts, and the exercise of power by an inbred group, as DeFilippo described.

However, these negative aspects were partly offset by the advantages:

The consolidation of power, during that era, brought forth a sense of corporate responsibility and civic duty. The exodus of corporate Baltimore ultimately led to the decline of corporate philanthropy and support for charitable and cultural institutions, as demonstrated by the financial strain faced by the Baltimore Symphony…

Civic fundraising campaigns were often spearheaded by local banks, not only to exhibit civic goodwill and corporate citizenship but also because it made good business sense. The key was their mutual support for each other’s projects, creating a reliable lifeline of financial aid to sustain cultural institutions.

Meanwhile, DeFilippo highlighted:

However, there was a provincial aspect to this benevolent image. Local banks hindered the city’s commercial development by denying loans to external interests seeking to establish themselves in Baltimore. Local establishments perceived local capital as vital for fostering a connection with the community, but the primary concern of local banks was safeguarding fellow Baltimoreans (including their clients) from external competition.

By the mid-1970s, Baltimore’s population had become predominantly Black (source), and African American voters emerged as the dominant political force in the 1980s. This culminated in the election of Kurt Schmoke, a Rhodes Scholar and Harvard Law School alumnus, as mayor in 1987 (source).