G-P Continues Lead For Atlanta Economic Stupidity and Failure

Jeff Davis

Georgia Heritage Council
Phone: 770-297-4788 email: chairman@GeorgiaHeritageCouncil.org
Web: www.georgiaheritagecouncil.org

G-P Continues Lead For Atlanta Economic Stupidity and Failure, by J. A. Davis

Recently we have taken a little effort to emphasize how a number of Atlanta corporations which have been prominent in anti-Southern heritage campaigns have met reported economic problems and potential stockholder concern.

We have a list of the "usual suspects" in the Atlanta corporate world who seem to be competing with each other for The Economic Stupidity Award.

It's almost like poor judgement in getting involved in political and public issues seems to carry over to poor judgement in corporate decisions. Maybe the two are synonymous.

You should know I don't take much pleasure in criticizing free enterprise. I still believe in it as fervently as I did when I first recited the Jaycee Creed. "Economic justice can best be won by free men through free enterprise." That didn't mean stupid men through poor business judgment.

You should also know that I spent more than 20 years on the boards of various chambers of commerce, including the Georgia State Chamber. While observing full disclosure, I should also tell you I was a Commissioner of Commerce for Northern Virginia during the huge growth in the Fairfax-Reston area under Governor John Dalton.

I'm not a basher of good business practices and corporations. I have become sensitive to some who give the vast majority a cloudy, questionable image or public perception.

One of those, Georgia-Pacific, hit the news twice this week. In both cases the foibles of management become a question for consumers and investors alike.

Georgia-Pacific profit falls 12 percent
Bonds under scrutiny by SEC - Tax-free status denied by IRS

Bad enough that the G-P top executive, A. D. Correll, took it upon himself, his company and his stockholders an attempt to influence political and public policy with his leadership in the Atlanta Chamber of Commerce against Southern heritage. Public records indicate G-P provided cash to legislators and lobbying efforts to remove from consideration the '56 state flag from a referendum [2004]. They showed they had no respect for the people to have a fair choice. G-P paved the way for the phoney rigged referendum that 79% of the people later classified as unfair and supported a fair vote including the '56 flag.

Now reports indicate some possible serious wrongdoing with efforts to raise money through a tax free bond issue which has been challenged by the IRS and the company is now involved in an SEC investigation.

Though Correll and associates claim innocence, their stockholders should know they have set aside eleven million dollars to handle the potential shortcomings, penalties and interest, and that's just an estimate. It could be considerably more.

The public seems to be getting wise to the arrogance displayed by G-P executives who seem to feel they can slide by such issues as insulting a large part of their Southern customer base and at the same time issue bonds that the IRS says are not what they say they are.

Here are some facts. Georgia-Pacific sales were down many millions in their latest quarterly reports. Their profits were down over 11%. Correll and company blame the problem on increased operating costs. That's probably true, but what about the decline in the sales of the consumer products? A huge drop in revenue has ensued which can only mean not as many people are buying G-P products as before.

A little change in attitude about the culture and the traditions of the South could be helpful in bringing back some of those products. Continued arrogance and Atlanta-oriented stupidity could get much worse as the anti-South message gets around. Are you listening, Pete?

Mr. Correll is due to retire soon. Who knows what the new leadership at G-P will bring. I certainly haven't placed their stock on my "buy" list, though the prices have dropped lately and the analysts are busy re-evaluating where to go from here. It's a pity when they could be doing so much better.

Jeff Davis is a retired radio-TV journalist living in Gainesville, GA. Active in civic and political affairs, he is past president of the Georgia Jaycees, former vice president of the US and the world Jaycees, former campaign chairman of the Georgia Republican party. He voluntarily serves as chairman of the Georgia Heritage Council. He is a collateral descendant of President Jefferson Davis.

Contact: Telephone 770 297-4788 P-6, 2363 North Cliff Colony Drive Gainesvlle, GA 30501