Posted on 06/01/2005 12:59:06 PM PDT by whodat57
Wachovia Corp. today joined a growing list of American companies that have unearthed controversial pasts and want to make future amends.
Charlotte, N.C.-based Wachovia (NYSE: WB) recently commissioned Chantilly, Va.-based historical research firm The History Factory to investigate its predecessor banks and create a full report. The investigation revealed two institutions that later became part of Wachovia through acquisitions -- the Georgia Railroad and Banking Co. and the Bank of Charleston -- owned slaves.
Through specific transactional records, historians determined the Georgia Railroad and Banking Co. owned at least 162 slaves and the Bank of Charleston accepted at least 529 slaves as collateral on mortgaged properties or loans, and subsequently acquired an undetermined number of slaves when customers defaulted on their loans.
Georgia Railroad and Banking Co. was founded in 1833 to complete a railroad line between Augusta and the interior of Georgia. The company relied on slave labor to build and maintain the railway. The bank also awarded contracts to contractors that used slaves to work on the railroad.
In 1986, First Union Corp. acquired Georgia Railroad and Banking Co., which by then had evolved into First Railroad & Banking Co. In September 2001, First Union bought Wachovia in 2001 for $13 billion and assumed the Wachovia name.
Wachovia's investigation also found that several of its Northern predecessor banks profited indirectly from slavery: Bank of North America (Philadelphia), The Philadelphia Bank (later Philadelphia National Bank), Girard National Bank (Philadelphia), Farmers' & Mechanics' Bank of Philadelphia, Pennsylvania Company for Insurances on Lives and the Granting of Annuities (Philadelphia), Bank of Baltimore, Savings Bank of Baltimore, State Bank of Elizabeth (New Jersey), and State Bank of Newark (New Jersey).
According to the investigation, these banks outside the traditional South had founders, directors, or account holders who owned slaves and/or profited directly from slavery; invested in or transacted business with companies or individuals that owned slaves; invested in the bonds of slave states and municipalities; or invested in U.S. government bonds during years when the United States permitted and profited from slave labor directly through taxation.
"On behalf of Wachovia Corporation, I apologize to all Americans, and especially to African-Americans and people of African descent," said Ken Thompson, Wachovia chairman and CEO. "We are deeply saddened by these findings."
Wachovia said it plans to partner with community organizations that are experts in furthering awareness and education of African-American history. Yesterday, Wachovia was named the principal sponsor of the National Center for Black Philanthropy (NCFBP) and national co-chair for its Fifth National Conference on Black Philanthropy.
"We know that we cannot change the past, and we can't make up for the wrongs of slavery," Thompson said. "But we can learn from our past, and begin a stronger dialogue about slavery and the experience of African-Americans in our country. Today Wachovia is a company that is committed to respecting individuals and building an inclusive work environment. We want to promote a better understanding of the African-American experience, including the unique struggles, triumphs and contributions of African-Americans, and their important role in America's past and present. This is a natural fit with our company's strong focus on diversity, education and communities."
Similar stories of unknown past dealings in slavery coming back to haunt modern companies have emerged in recent years, as cities have passed laws requiring companies they do business with to disclose any ancient ties to slavery. Chicago, Detroit, Los Angeles and Philadelphia have all adopted such laws.
Chicago's slavery disclosure ordinance recently forced JPMorgan Chase & Co. to rediscover its past when it financed a bond issue for that city in 2003. The New York-based bank (NYSE: JPM) had to hire historical researchers to investigate its history, specifically with its predecessor banks, to make sure it did not have any ties to slavery. In January 2005, the bank reported two of its predecessor banks in Louisiana accepted slaves as collateral on a loan and later owned more than 1,250 slaves. It apologized and created a $5 million college fund for black students in Louisiana.
Early last month, Charlotte-based Bank of America Corp. told the Chicago City Council that bank research found no evidence that any of its predecessor institutions had profited from slavery, American Banker reports. The issue arose for BofA when it filed a disclosure form with the city as part of a bond deal.
An alderman submitted a resolution to the council to call BofA to prove it had complied with the city ordinance.
Alderman Dorothy Tillman accused BofA of lying on its disclosure form, saying she had evidence that a founder of Providence Bank of Rhode Island, a predecessor of FleetBoston Financial Corp., owned slaves. BofA bought FleetBoston in April 2004 for nearly $48 billion.
BofA testified the former Providence Bank president, John Brown, was a slave trader.
However, BofA said, he didn't receive financing for that activity from the bank.
Wrong --- They Want Da Money !!!
So when are Jesse and Al going to get on the air and demand money from this bank? Soon, I'd bet.
I just discovered recently that some of my distant German ancestors were indentured servants down in Pennsylvania. Think I can get some bucks out of that? I feel really bad about it, my self esteem has dropped to a record low.
Hey, I had some ancestors way back when who were Christians enslaved by the Romans (I think one of 'em even got fed to a hungry lion). I wonder if I can get some money from the Italian gubmint?
"I just discovered recently that some of my distant German ancestors were indentured servants down in Pennsylvania . . . . my self esteem has dropped to a record low."
Hey, don't feel bad just because they lost their teeth.
I know that some in the black "community" have fingered CSX Corporation for having companies in its corporate tree that used slave labor well over 100 years ago.
It's all about reparations for some in the black "community"...like Jackson and Sharpton.
I hope CSX doesn't cave and pay out a huge chunk of cash or volunteer to set up a "minority sensitivity program" within CSX.
The most I'd agree to is a standard apology issued by someone in CSX's Investor Relations area.
What a waste of time, money and effort
I've never quite understood how it's possible to sincerely apologize for someone else's trangression.
Hey, I'll bet some people walking free today are descendants of dead felons. Some of these people maimed, killed, stole, and looted. When can I expect my apology and my forthcoming reparations... granted I am not a direct victim... but society needs to be reimbursed now, and forever.
Cha-CHING!
Before Jesse and Al get their money they're going to have to prove that their ancestors didn't own slaves. Slaveholders were both black and white.
So I suppose the new bankruptcy reform law requires the descendants of those slaves to report to the nearest Wachovia Bank branch at 8:00 am Monday for their work assignments? ;)
It's like fools gold, c8r.
You mean I should accept the tooth, the whole tooth, and nothing but the tooth?
And this in The Land of the Free!
At the time of the Declaration of Independence, slavery was legal in every one of the Thirteen Colonies. Slavey was finally outlawed in New York State approximately 33 years before the outbreak of the Civil War.
Slavery still exists in many parts of the world, including Africa.
"We know that we cannot change the past, and we can't make up for the wrongs of slavery. But we can learn from our past, and begin a stronger dialogue about slavery..."
Thompson's right.
We can also do everything we can to end slavery in the world today and to prevent it's raising its hideous head in the world tomorrow.
That's an excellent point and probably true. They may have been called serfs or servants or indentured workers, or whatever, but it all comes down to slavery of one form or another.
The poor people who ought to sue are the ones who never got on the boats and were stuck in Africa. They were killed outright rather than traded for money by their fellow blacks.
What's really the shame here is that Wachovia is named after the Southern Province of the Moravian Church and it's original 100,000 acre tract of land, acquired in 1753 that they called Wachovia (modern day Winston-Salem, NC area) ... Moravians frowned upon slavery, and very few owned slaves. They weren't quite so ardent as their Quaker neighbors down the road at New Garden (modern day Greensboro, NC), though.
Those First Union a-holes are going to run the formerly-excellent Wachovia name into the ground, too.
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