Two things:
1. K Carl Smith is black. I doubt he's defending slavery and segregation; he's just saying that keeping blacks dependent on government handouts is essentially another form of slavery, and that it is worse than segregation. This comment has been taken out of context.
2. Frederick Douglass was a Republican, and it was Republicans who fought to end slavery and segregation. If Terry knew the history, he would be a Democrat, especially since he had a George Wallace button.
Seeing how all those Dixiecrats are the foundation of the modern GOP, I would say he is in the right party.