October 8, 2009
SERVING LOS ANGELES COUNTY WITH NEWS YOU CAN USE
Vol. XXX, No. 1148
Shock, Plans Emerge Following GSM Takeover
FIRST COLUMN
Chatmon Honored with Blues Marker in Hollandale BY TERRI FERGUSON SMITH DELTA DEMOCRAT TIMES
HOLLANDALE, Miss. (AP) — It doesn’t seem to matter that bluesman Sam Chatmon was born in Bolton; he spent most of his life in Hollandale, which claims him as its own. Most people attending the dedication last week of a Mississippi Blues Trail marker for Chatmon weren’t born yet when he moved to Hollandale in 1928, and though he died in 1983, there was the feeling that he was there
NATIVE SON — Sam Chatmon, Mississippi Blues artist, who was born in Bolton, was honored last week in Hollandale, the place where he grew up, with a Mississippi Blues Trail Marker. The markers help promote “authentic Mississippi blues music” for economic development.
and being lifted upon the shoulders of his people and carried through the town. Blues fans, friends and family of Chatmon gathered to honor and remember the guitar-playing son of a former slave who made most of his living working on plantations but also earned money — and a measure of fame — playing the blues. Notable songs by Chatmon include, “Sittin’ on Top of the World,” “God Don’t Like Ugly,” “Hollandale Blues,” “You Shall Be Free,” and “Sam’s Rag Cross Cut Saw Blues.” Edgar Smith, a member of the Mississippi Blues Commission who was born in Hollandale, explained the purpose of the trail markers, which is to promote authentic Mississippi blues music and blues culture for purposes of economic development. “The blues trail will be composed of over 100 markers and interpretive sites located throughout the state,” Smith said. Chatmon’s marker is the 86th dedicated to date and its flip side tells the history of “Blue Front,” a row of blues clubs on Simmons Street in Hollandale where Chatmon and many other bluesmen performed. See CHATMON, page 12
BY CHICO C. NORWOOD STAFF WRITER
African American community members expressed shock, disappointment and a hint of future plans following the news last week that Golden State Mutual Life Insurance Co. was being taken over by the California Department of Insurance. The state stepped in to take over the 84-year-old African American company to protect policyholders and “to prevent continuing financial deterioration,” Insurance Commissioner Steve Poizner said in a prepared statement Sept. 30. “I just heard the news yesterday (Oct. 1). It caught me as a shock,” said Paul Hudson, president and chief executive officer of Broadway Federal Bank. Hudson’s family, which cofounded the bank, has had close ties with some of the co-founders of Golden State for many years. “I didn’t realize there was an issue,” Hudson said. “This is a great loss to the community.” Deputy Insurance Commissioner Byron Tucker told the L.A. Watts Times that Golden State Mutual had been in somewhat of a free fall for some time, operating at a loss for the past five years. In June, the company posted a capital surplus of $1.6 million, well below the $5 million minimum required by the state, he said. According to state projections, Golden State was losing $200,000 a
Surrounded by Doctors, Obama Pitches Overhaul BY CHARLES BABINGTON AP WRITER
WASHINGTON (AP) — On the cusp of a key legislative push, President Barack Obama on Oct. 5 filled the Rose Garden with doctors supportive of his health care overhaul, saying “nobody has more credibility with the American people on this issue than you do.” Obama’s White House event gave him another chance to frame the debate on his terms as his top domestic priority enters its most critical phase.
The Senate Finance Committee is expected to approve its long-debated, intensely scrutinized bill this week. Then, Senate Democratic leaders will meld it with a more liberalleaning version passed by the Senate Health, Education, Labor and Pensions Committee. The House also must combine differing versions of its own bills. For a visual plug from some medical pros, the White House arranged for Obama to have some 150 doctors representing all 50 states arrayed in the
sunsplashed lawn area just outside the West Wing. To make sure no one watching at home or catching news footage later would miss the point, the physicians wore their white medical coats for the cameras. “When you cut through all the noise and all the distractions that are out there, I think what’s most telling is that some of the people who are most supportive of reform are the very medical professionals who know the health care system best,” See OVERHAUL, page 3
AP Photo/SUSAN WALSH
DOCTORS WEIGH IN — President Barack Obama addresses doctors from across the country Oct. 5, in the Rose Garden of the White House in Washington. With him, on stage, from left are, Dr. Mona Mangat of St. Petersburg, Fla., Dr. Hershey Garner of Fayetteville, Ark., Dr. Richard Evans of Dover-Foxcroft, Maine, and Dr. Amanda McKinney of Beatrice, Neb.
SHOCKWAVE — Golden State Mutual Life Insurance, once one of the largest African American insurance firms in the country, was taken over by the state Department of Insurance last week. The company was reportedly in a “free fall” for several years.
month and expected to lose more than $600,000 by the end of this quarter, Tucker said. “They were hemorrhaging money … and in danger of not paying claims to policyholders,” Tucker said. “They had no plan to rehabilitate the company. They had been selling off assets to increase the bottom line …We had taken numerous steps to help, but they continued to operate in a hazardous condition.” Tucker said part of the reason for Golden State’s failure was that the company’s “marketing did not keep pace with the industry.” Larkin Teasley, Golden State’s chairman and president, could not be reached for comment at presstime. State Assembly Speaker Karen Bass expressed disappointment regarding Golden State’s takeover. “It was very unfortunate that
the insurance commission had to come in to take over Golden State,” said Bass, whose grandfather worked for the company as a salesman. “It is my hope that they will be able to straighten out their finances so that it can be an independent African American-owned entity in the near future.” Bass told the L.A. Watts Times that she had arranged for the various entities involved to come together with the insurance commissioner on Oct. 2 to begin talks about restoring the insurance company to community control. Shannon Murphy, a spokesperson for Bass, told the newspaper on Oct. 6 that issues are still being sifted through, and more follow-up action will take place with the situation. See GSM TAKEOVER, page 8
NEWS IN BRIEF THE SOUTHLAND Department of Water and Power Chief Resigns (AP) — The head of the Los Angeles Department of Water and Power has stepped down to become a senior adviser to former President Bill Clinton’s initiative on cliDavid Nahai mate change, the mayor’s office said Oct. 2. Mayor Antonio Villaraigosa thanked David Nahai for his years of service with the nation’s largest municipal utility, saying in a statement that he helped reduce water consumption to record levels and put Los Angeles on the path to be coal free by 2020. Nahai’s resignation came amid mounting concern over the failing water main system overseen by the DWP, which provides water and electricity to some 3.8 million residents and businesses. There have been more than 35 major water main blowouts in the city’s water system since last month, causing flooding of streets, homes and cars.
The DWP did not immediately return a call seeking comment. The Clinton Climate Initiative did not respond to an e-mail seeking details about Nahai’s appointment.
FBI Investigates Burbank Police (AP) — The FBI says it is investigating allegations of civil rights violations involving misconduct by Burbank police officers. FBI spokeswoman Laura Eimiller confirmed the investigation, but said it is not related to civil lawsuits filed by several officers who allege a pattern of racial discrimination and retaliation. She would not comment on specifics of the investigation or say how long it would last. In July, Christopher Lee Dunn sued the department, arguing that he was subjected to years of racial taunts and discouraged from joining the department’s narcotics unit because he was not white. The lawsuit alleges he was targeted by management before eventually being run out of the department. Six other officers have also sued. Burbank Mayor Gary Bric says he’s confident the investigations will be thorough. See BRIEFS, page 7
www.LAWattsTimes.com