Im David Shuster in for ali velshi, and this is real money. This is real money, and you are the most important part of the show. Tell us what is on your road by tweeting us and facebook. The north American Oil Boom is putting more pressure than ever on u. S. And canadian roads and railways. It is coming as we mark the one Year Anniversary of a rail accident in lacmegantic, quebec. 47 were killed and 30 buildings destroyed when the oil cargo on a train ignited. It was carrying fuel oil, which is more flammable than from conventional fields. Shale Oil Production increased and Canadas Oil Sands expants, pipeline construction is not keeping pace, naption in part to pub thanks in part to public opposition and a lengthy process. We have to rely on other ways to move the oil. And north americas rail system is chosen. The transport of oil by rail jumped 13 come paired to last year. They transport 10 of americas oil output, or 8 hunds,000 barrels per day. All of that extra traffic has increased the likelihood of rail accidents. All that oil by rail overwhelmed branch lines which are not as well maintained as main lines. The fleet of tankers used to transport the oil is ageing with thin metal skins that peers easily during derailments. Oil by rail is not only more hazardous, on a price per barrel its more expensive. Given the public opposition to pipelines the oil has to be moved somehow. Rail is picking up the slack. U. S. Regulators are trying to find ways to manage the Safe Movement of oil by rail. The critics say the regulators are not moving fast enough. In the last year since the disaster, there has been four oil by rail explosions causing Property Damage in communities in the United States and canada. Rail critics say little is done to protect communities in the path of the trains. We went to a community, albany, new york. Reporter they died without warning. 47 me, women and children, all victims of a Catastrophic Oil explosion in lacmegantic canada. [ speaking Foreign Language ] oh, my god. Reporter the fireball erupted when a 74car Freight Train derailed, ipp sinnerating the town and dozens that called it home. It burnt for two days, with firefighters helpless to stop it. That was july 6th, 2013. A year later, a community in albany new york gathered to remember the victims. We want to let them know we mourn with them, and let the people now that we have to do something about it. The apartments lie 25 feet from a major rail line carrying the crude to refineries up and down the east coast. The trains you are talking about tens of thousands of gallons, and a Chain Reaction detonation. Every resident. This playground where Children Play would be wiped outlet oil by rail shipments skyrocketed to over 87 million in 2013. With so much flammable liquid on the rails, federal regulators struggle to improve safety. According to a department of transportation spokesperson the Agency Issued emergency orders and safety advisories, conducted inspections and brought together companies to reach an agreement on immediate actions that can be tap to improve is be taken to improve safety including still the accidents continue. November 2013, amsville, a train hauling crude derailed, sending flames hundred of feet in the ear. December 2, 01, castleden, a milelong oil train collides with a derailed railcar, 1400 flee. Plaster rock, 2014, bordering maye, 15 railcars derail spilling 1500 gallons of crew and april 2014, downtown lynch berg virginia. In may, a week after the lynch burg explosion the department of transportation responded with an emergency order. It required rail roads to give state emergency teams advance notice of oil stipments carrying shipments carrying one Million Tonnes of back and crude and asked oil cruise to stop using dots 111. This type exploded and punctured in lacmegantic. The Railroad Industry petitioned the federal government three years ago to raise standard. We have been sitting and waiting. We asked to have the dot 111 phased out of the fleet, or retro fitted. But the railroads are part of the equation. They own the rail lines, refineries owe the tanks. Replacing or upgrading cars could cost billions. In a may 14th report submitted to the dot, a refinery lobby group defended the tankers writing . In the face of the competing claims, senator heidi high camp of north dakota lashed out at industry representatives, appearing before a subcommittee. This is problematic. From a public stand point because the public expects well make factbased decisions. The department of transportation tells al jazeera all options are on the table. A comprehensive oil by rail proposal is expected later this year, communities like this are not willing to wait. Look at what your local laws are and execute d. Dont stand down. It will take everyone in the nation to stand up, to make it happen, to stop it. Lets talk about what need to be done to improve safety. We spoke with peter goals a director of the National Transport safety board. Hes a Senior Vice President for washington Public Relations firm oneil and associates. We asked if he thought the Safety Measures that the department of transportation enacted in the past year are working. They have done some things to help, yes. Lowering speeds, i think the rerouting of trains, you know, all oil and Hazardous Material trains now go through a 27 point routing process that chooses the safest route. But the reality is, is that the government, particularly the office of management and budget, has been sitting on the rules, upgrading 111 cars since 2011. Why they have not acted, i dont know. Why do you think they havent acted . Everyone agrees getting rid of the 111s is the key step that can be taken to keep safety problems getting worse. The Rail Industry recommended stronger jackets, robust head shields and application for valve. I believe that the office of management and budget has been reviewing cost benefit analysis. The reality is 99. 99 of all hazmat material is delivered safety. I think they havent got a cost benefit analysis yet that is justified the rule from their perspective. I think thats faulty judgment. Does their analysis include a factoring in the oil refinery lobby which maintained that the 111s are safe. The Oil Producers have been advocating to keep the 111s in the fleet. The Rail Industry has their hands tied. They have to take what is given to them because its common commerce. They have to take the oil. This the in the cars that they are presented. I think dot will act before the end of the month. Issuing rules that will strengthen the railcarers, will phase out the 111s. I think that will be a step in the right direction. Clearly this is this is a politicized issue like other issues are today. Part is tide into the completion of the pipe line. Supporters kiev if they can attack rail, it advances their causes. And environmentalists believe fossil fuel pumped out of the ground out not to be the way to achieve energy and independence. Its a complex issue. Theres the choupties where the lines communities where the rail lines go through. What do you think about local law makers getting involved. Can that have an impact as the department of transportation considers the issues. Its understandable that local communities are concerned about this. I understand that. The reality is transparency on the transport of Hazardous Materials is really not the safe way to go. If, you know i know where its going, terrorists can know where its going. I think theres a middle ground in which the people that need to know, emergency responders, law enforcement. They have the information. The rail lines are making it available. I think there are steps that are tape now that are taken now that are making it safe. Can we do better absolutely. Former director of the National Transportation safety board. Thank you for being on the programme. Next increasing diversity in the tech sector. Its a problem talked about for some time. A group of investors is doing something about it. That story when we come back. Tech giants including google, apple and others showed most workers are white or asian. Theres bias in Silicon Valley and investors. To combat the problem a group of incubator and entrepreneurs is helping coloured improve count rirks to better attract venturers. This man fits into the startup scope. He bikes to work, young, college educated. Stylish. Unlike most people in his professional life, he is africanamerican. A typical c. E. O. Or tech entrepreneur doesnt look like me. You come to work in the tech area of brooklyn. How many people of color do you see on your way to work . One in 10. Reporter dream adventures is trying to change that, getting special funding from Comcast Ventures recruiting tech start ups run by people of colour. A third of the companies are sponsored by comcast in dreaming access programme. Reporter the best accelerators for minorities encourage collaboration regardless of race. The same access to resources, talent, guidance that everyone has. In exchange for handing over a 6 equity stake, each company has 25,000, office space for three months, mentorship and legal and Accounting Services which comes in handy. This is we did it, through an app it offers a fast way to connect donations by telling phones and tablets into credit card readers. When seconds the card is scanned. His company connects a small portion. The reach of we did it is vast. Theres 1. 6 million nonprofits. Tracking investors has not been easy. We had difficulty raising fund. We have been cashflow positive for an i cant remember. Reporter according to the center for venture reach, less than a quarter of firms seeking funding god it. The swags is more bleak for people of colour. Only 13 of nonwhite applicants got Angel Funding compared to an average of 22 . Social connections are part of the problem. Entrepreneurs may not have the professional contacts. This is where incubators like dream adventures add the most value. People have the chance to pitch to several hundred spestors. Its investors. Its time black entrepreneurs reach out to the world. Juliet walker says the mark for products and services that appeal to americans of colour present a unique opportunity outside traditional areas. It seems the only thing the global choupty wants to purchase are aspects of culture, identified with superstar athletes and entertainment. Black spending power stands at 1 trill on. At 1. 3 trillion the hispanic market is bigger than the economies in all but the top 15 companies. The biggest drivers is that these groups skew young are, and, therefore, what is hot in u. S. Markets of colour is likely to have global appeal. University of georgia shows african mens spend more in electronics than most americans. Apple abounced a 3 billion acquirement of beets. Dreaming access banked on Companies Like perkel. They are focussed on c. E. O. S. Towards the end of the year well be past our 1,000 nted client. Its not just Angel Investors luring more minorities, google has been under pressure to address its low rate of hirings and will commit 15 million to made with code. A programme to get more women and minorities into coding. Next, a Small Business opener could search far and wide for capital to find it next door all along. We look at entrepreneurs and local investing after this. Now inroducing, the new al jazeea america mobile news app. Get our exclusive in depth, reporting when you want it. A global perspective wherever you are. The major headlines in context. Mashable says. Youll never miss the latest news they will continue looking for suvivors. The potential for Energy Production is huge. No noise, no clutter, just real reporting. The new Al Jazeera America mobile app, available for your apple and android mobile device. Download it now wroo we have heard of the movement to buy local and eat local. Now theres an effort to invest local. Financial frls are helping to firms are helping to connect local businesses hungry for capital but too small or knew to land bank loans. We have a report on how entrepreneurs find the cash they need is closer than they thought. Lisa runs a Free Range Chicken ranch in california. Last summer she found hers in a position any small farmer would envy. Offer the chance to sell chicken and eggs at a large farmers market. Hi, girls. She expected sales to grow 600 . But she didnt have the money needed to scale up production. The seed runs 22 to 2500 every other week. Its a lot. When you have app opportunity to an opportunity to grow and use products you need to do something. She turned to an unlikely source for a loan her neighbour. I think we sketched the loan on the back of a napkin. To me its a nobrainer, i no what a great job shes doing. Reporter high tech c. E. O. Turned cattle rancher is a small but growing range of investor choosing to park the money in community businesses. We want to go back to the time when there was a local banker who knew you your whole life. Spurred on by small companies, investing local has in recent years become a trend. We feel like todays Financial System could be described as complex, opaque and anonymous based on shortterm outcomes, and where people want to go is towards transactions based on longterm relationships. This is the opener of a firm connecting businesses in need. In the last three needs the firms assets grew 40 to 170 million. Just in the past several months ive been to little rock arkansas, louisville kentucky, there are a lot of places where this takes route. Reporter wealthy investors can afford to take a chance. Not a luxury the average american might have. I can afford not to get my money back. Its not my retirement funds. Most local investors offer loans between 510 and use property as a collateral. Having a relationship gives borrowers muchneeded flexibility, as she found out when she lost chickens to disease. I knew what my lender would say. It would be to come up with a solution. Personal loans like canootsons are the norm, an increasingly used tool is a direct offering, known as the do it yourself ipo or dpo. For entrepreneurs, theres so much of savings you can invest to make the vision a reality. Dpos ask businesses to sell better equity to members of the community. Cutting edge capital helped 11 businesses complete dmos. 25 more in the pipe line. Most of the offerings found on line. Jenny cassin says Companies Going flow dpos, participation investors should do their own due diligence. Some clients are startups, they dont have much of a track record. When anyone invests they should understand they could lose their money. Investing in local businesses like lisas farm and not the standard stocks and bonds will be the smartst bet for sally cohoop. We look apt risk incorrectly when he say its less risky to hand it to wall street than invest in the community and the people we know. This fall she plans to expand her farm with a goat milk creamery. She need another loan, but knows its a short drive down the road. For a better sense of what is driving the movement from investing from global to local. We turn to someone with decades of experience. Leslie turned to social and local investing and is Senior Advisor for rfs social finance, the firm we featured. We asked what it was that convinced her to deoat her devote her career to local investing. There was a lot of sexism, shortterm thinking leading to profit. It didnt work for me. I began to make other connections, folio other paths follow other paths, think about things differently, think about how women could be empowered economically. Thing about what is fair and just. I learnt about ecological limit. That pushed me over the edge, realising that we cant keep growing and doing business the way we have been doing it for the past 100 years. And expect to survive on this planet. So the paths have all led me to local, and at the risk of being simplistic, i do think local investing answers a lot of the questions that we have and solves a lot of problems. One of the questions a lot of investors have, never mind the altruism they may have is what sort of return can they get. What is the average return you may get on a local investment . You know, that question is complicated. The answer is complicated as it is with other investing. One of the misperceptions is that all local investing to extremely risky, and, in fact, investing locally can range from making a secured loan to making an Equity Investment in a startup company. I say that its difficult to estimate returns, the story earlier mentioned that loans are often made in the five, six, seven, 8 range. Much like what happens in the dominant Financial System. Are there areas where you see the most interest in terms of making the local loans, the particular local area that you think have the best chances . Yes. It may not be surprising to know that theres a huge interest in food and food systems, because that is an area where localizing, if theres such a word, is easy, and obvious, visible, tangible. Food systems are a big attraction for people who want to be involved in local investing. From there we go to farms, forestry, ranching, local manufacturing. I think a germ comment would general comment would be that local investing is an invitation to be involved in beneficial and essential goods and services, which leads us to what we may consider the real economy. Those are the areas where we see the most activity. Well said. Leslie christian an investment advisor, thank you for being on the programme. Next week on real money its a big week for bank earnings. Expectations are low as big banks struggle. Its good news for small banks seeing higher loan demand and the most merger activity. Real money with ali velshi. That is our show for today. Im David Shuster. Thanks for watching. For three hundred years the most powerful countries on earth grew richer and stronger on the profits of the slave trade. More than 12 million men, women and children were forcibly transported from africa to the plantations and colonies of north and south america. Today slavery is illegal in every country on the planet. Yet slavery didnt die in the 19th century. It is alive, thriving and