The Big Payback

By Salim Muwakkil, In These Times. Posted May 9, 2000.

Aetna, the largest life and health insurer in the nation, helped build the foundation of its current prosperity by insuring slaveowners' human chattel. So discovered Deadria Farmer-Paellmann, a 34-year-old New York attorney whose research has revealed a number of unsavory corporate links to slavery.

When she informed Aetna about her research, officials initially acknowledged the company's role, apologized and hinted it might offer some form of restitution. "We express our deep regret over any participation at all in this deplorable practice [of insuring slaves]," Aetna spokesman Fred Laberge told Reuters. "We want to make clear that we take this matter very seriously, and we are actively engaged in determining what actions might be taken."

But after mulling over that statement and the monumental implications of such an acknowledgment, Aetna quickly changed its tune: "We have concluded that, beyond our apology, no further actions are required."

Farmer-Paellmann says that's not good enough. "Aetna has a moral obligation to apologize and share that unjust enrichment with the Africans they helped maintain in slavery," she insists.

Farmer-Paellmann is not alone in that view. She is one of a slew of activists and researchers bringing the debate over slavery reparations into the mainstream. She notes that there is little difference between her efforts to unearth the unjust enrichment accrued from slavery and the efforts of investigators seeking restitution on behalf of victims of Nazi barbarity.

When Germany and Israel signed the Luxembourg Agreement in 1952, it set the stage for a unique form of legislation known as Wiedergutmachung ("to make good again"). The legislation obligated Germany to pay reparations to individual Holocaust survivors as well as to the state of Israel for crimes committed by Third Reich against Jewish people in general. The principle underlying Wiedergutmachung was that a state that systematically has victimized an entire group of people has a moral obligation to compensate that group materially on the same basis. What's more, the German legislation accepted ongoing responsibility for the echoing, intergenerational effects of Nazi persecution.

This same logic has been used in the United States. In 1988, the U.S. government granted federal reparation payments not only to Japanese-Americans who had been sent to internment camps in World War II, but also to their next of kin. The law reinforced the notion that injuries suffered as a result of minority status must be compensated on the same basis -- a clear precedent for reparations for African-Americans.

In 1994, Florida allocated $2 million to be paid to descendants of a deadly 1923 race riot in the town of Rosewood. Similarly, last February an official commission in Oklahoma recommended that the state pay reparations to survivors of a 1921 race riot in which a white mob decimated a black section of Tulsa, killing hundreds and injuring thousands. Rosewood and Tulsa are just two of many race riots that erupted in the United States after Reconstruction. Oklahoma state Rep. Don Ross, a prime mover of the legislation that created the Tulsa commission, argues that documenting those other riots would help build the strongest possible argument for reparations. Ross sees his state's action as only the first step in a much larger process. "Along with what happened earlier in Florida," he says, "this should open the door for a nationwide dialogue about the savagery this nation has bestowed on African-Americans."

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