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Return to Virginia Business - July 2002

Paying for the abuses of slavery

by Peter Galuszka

Without a doubt, the practice of slavery was the worst human rights calamity in American history. Yet how can wrongs be made right? Should monetary reparations be paid to descendants? Who are they and how far back should the payments go?

Related stories:
Pay the community, not slave descendants
There's no legal case for reparations suits

These issues are taking a new and tortuous turn after a series of provocative lawsuits that seek monetary reparations against four, and possibly as many as 100, U.S. corporations that may have profited by the institution of slavery. Virginia, of course, has played a great role because it was where slavery first began and was the epicenter of slave-related controversy.

One defendant is Richmond-based CSX Corp., which bought another railroad, the Richmond, Fredericksburg & Potomac, in 1991. The RF&P got its start 157 years before when its owners began leasing slaves to hack out roadbeds linking Richmond and Washington, D.C. For decades, RF&P was a bustling but small carrier that served as a critical link between Northern and Southern rail empires.

Not long after RF&P was taken over, a young African-American woman named Deadria Farmer-Paellmann was researching her family history. She had grown up in New York City, but had ancestors who had been slaves in the South. The more she plunged into her research, the angrier she got. She found that the predecessors of many highly profitable U.S. corporations had used slave labor or somehow benefited from it. Farmer-Paellmann entered law school with the goal of becoming a lawyer and filing class action suits for reparations against the companies.

This March, nearly two years after she got her law degree, Farmer-Paellmann launched her legal blitz. She filed federal lawsuits against Aetna insurance, claiming that its predecessor profited from policies taken out on slaves, and FleetBoston, whose earlier companies had made money financing the slave trade. Besides CSX, Norfolk-based railroad Norfolk Southern Corp. was named as a defendant.

The Farmer-Paellmann suits seek restitution on behalf of some 35 million African-Americans she claims are related to the slaves whose labor was misappropriated. Some estimate the value of the labor of those slaves to be as high as $1.4 trillion. Possibly up to 100 companies may become defendants. USA Today has identified dozens of companies whose predecessor companies were linked to slavery, including Media General, publisher of this magazine, because one Richmond newspaper that was a forerunner of the Richmond Times-Dispatch sold ads for slave buyers.

Regarding the four firms named in her suits, Farmer-Paellmann states: "These are corporations that benefited from stealing people, from stealing labor, from forced breeding, from torture, from committing numerous horrendous acts, and there's no reason why they should be able to hold onto such assets they acquired through such horrendous acts."

Paying reparations to injured parties is nothing new. The Kaiser's Germany was forced to pay war reparations and Jewish survivors of the Holocaust got settlements from German corporations. The U.S. government paid Japanese-Americans interned during World War II.
When it comes to slavery, however, the issue of reparations faces huge questions, chiefly because the practice of slavery ended 137 years ago. To gain differing perspectives, Virginia Business asked two commentators - one a professor of history at Norfolk State University and another a lawyer with pre-Civil War family ties to Virginia - to weigh in for this month's Ideas section.



Return to Virginia Business - July 2002


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