There are many contributing factors to every record -and non-record in both leagues, and many have been pointed out well on this thread.
I think it bears keeping in mind that Negro League teams could not carry 20+ players on a roster, and that to stay on one, you had to be versatile and one of the best available. When you can only carry ~15 or so players on the bus, if you didn't perform consistently you were let go for an up-and-comer who was anxious to prove himself. Thus, to say the NeLs were watered down is rather dubious. There weren't that many viable 1st-tier teams, true, but there were only 16 MLB teams during the segregation era as well.
As far as developing talent, black town teams and semi-pro circuits were plenty ubiquitous then just as white ones were, and this was where the NeL major teams found their talent. Considering the playing and traveling conditions and the number of openings on the payrolls of Negro majors, one would have to conclude that breaking into a major NeL lineup was as tough as it was in MLB - one had to be pretty doggone determined and talented to make the Grays, the Crawfords, the Monarchs, American Giants, Eagles, etc.
I also think the points made about MLB's talent of the time are credible - take
Ruth's list of 1927 homers, for example. He hit 4 of those off of
Milt Gaston, a journeyman who was basically an 11-year mediocrity at best. (4.55 career ERA, W-L 97-164). You can go down the list of the Babe's 1927 season and see a lot of this. This is not to disparage the Babe, mind you, who would have been a big-time hitter on any field, but it does beg the question of whether a lot of these nobody pitchers would have had a MLB job had the league been integrated in, say, 1920 or '25. With indisputably dominating guys like Paige, Joe Williams, Leon Day, Ray Brown, etc., excluded, I think it's safe to say that Ruth was swinging against a 'watered down' pitching stable through much of his career. Likewise, some of the dominant MLB pitchers might not have fared as well had they had to face the likes of Charleston, Leonard, Bell, Wells, Gibson, Mackey, Suttles, etc.
In the same way some speculate about Ruth's numbers had he been moved to OF before 1920, or May's #s had he not lost a year to the Army at his peak, it is certainly credible to believe that a Gibson may have rivaled Ruth, or a Joe Williams may have rivaled Walter Johnson, or that Paige may have been the Bob Gibson of his time. We'll never know, because of the way things were - and that's a shame.
Whether Gibson hit 900 home runs, against whom, and where, is certainly interesting fodder, but it's just as fair game to question the records of guys like the Babe, for the very same reasons.
IMHO....
I think it's accurate to say that both league's records from that era are disproportionate since neither league included all of the best players on the same fields.
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