At many universities and colleges across this nation there is an annual commemoration of Dr. Martin Luther King, Jr., and his vision of "a nation where they will not be judged by the color of their skin, but by the content of their character." At these ceremonies, it is common for various campus leaders and administrators to vow renewed commitment to Dr. King's vision; however, these claims increasingly ring hollow as more universities and colleges become places that define, stereotype, and treat people according to their skin pigment or the origins of their ancestors. In one eloquent phrase, Dr. King defined both the essence of racism and its cure. Judging someone by race or skin color is racism, and moving toward judging someone only by their demonstrated character is the cure for racism. The author argues that many of American universities are becoming purveyors of racism. In the California State University System (CSU) the process of categorization by race and ethnicity is embedded in the application process specifically the current CSU undergraduate application. Racial and ethnic separatism and prejudice are encouraged at CSU through a regime of indoctrination and segregation. For this discussion the author relies primarily on examples from a particularly egregious provocateur of racism and ethnic xenophobia, California State University Chico (CSU Chico), where he formerly taught. (Contains 12 footnotes.)