By LAURA MECKLER
Associated Press Writer
WASHINGTON (AP) - Reversing course, the Senate has scuttled a behind-the-scenes effort to prevent the Justice Department from suing the tobacco industry.
After the states won billions of dollars through similar tobacco suits, President Clinton announced in his State of the Union speech that Justice would explore a lawsuit of its own.
Government lawyers are now studying legal strategy for recovering billions of dollars spent by Medicare and other federal health programs to treat sick smokers.
But last month, Sen. Judd Gregg, R-N.H., quietly slipped a provision into a bill funding the Commerce, Justice and State departments that would have barred Justice from spending any money on such a lawsuit.
Democrats balked, and Sen. Bob Graham, D-Fla., introduced an amendment Thursday removing the offending language.
''To allow the tobacco industry to escape responsibility ... would be totally irresponsible, a surrender of our fiduciary  responsibility to the taxpayer,'' Graham argued.
Graham withdrew his amendment after Sen. Tom Harkin, D-Iowa, and Gregg introduced language into the Senate record nullifying the ban.
''Nothing in the bill or the report language prohibits the department from using generally appropriated funds ... to pursue this litigation,'' Gregg said in a statement submitted for the record.
Democrats felt confident they had the votes to pass the Graham amendment and had hoped to stage a public defeat of the tobacco industry.
''I want to make certain that the tobacco companies know that they have lost and the American taxpayers have won. We are not going to accept any half-hearted compromise,'' said Sen. Richard Durbin, D-Ill., a vocal opponent of the industry.
Democrats said that Gregg backed down and agreed to remove the language, fearing he could lose a public vote.
Making their case, Durbin and Graham recalled the Senate's success in preventing the federal government from taking a share of the money states won in their tobacco settlements. At the time, several people said that the federal government should file a suit of its own if it wants a piece of tobacco money.
A spokeswoman for Gregg said today that she did not have any comment on the issue beyond what's in the agreement reached Thursday.
The dispute moved the Senate back into the tobacco wars of last year, at least for a few weeks.
''It never stops,'' said Bruce Reed, Clinton's chief domestic policy adviser, who welcomed Thursday's action. ''It's hard to believe that Congress would side with the tobacco companies over the taxpayers.''
But the U.S. Chamber of Commerce joined the tobacco industry in lobbying to keep the ban in the bill.
''If the Department of Justice sues tobacco, then there's no business that's really safe from revenue-raising lawsuits,'' said the chamber's Jim Wootton.
Although Democrats prevailed, the Senate bill does not give Justice an extra $20 million requested by the president to work on the lawsuit. Justice officials decline to say whether they'll be able to move forward without the extra money.
''I don't do 'what ifs,''' Attorney General Janet Reno said. ''I think we can work with Congress to make sure that we can still proceed.''

By GARRY MITCHELL
Associated Press Writer
MOBILE, Ala. (AP) - A judge has refused to approve a settlement that the maverick Liggett Group Inc. tobacco company had once said it needed to avoid bankruptcy.
Liggett, which provided key evidence that led to the national tobacco settlement, had sought to head off future lawsuits by smokers by creating a fund that would pay $1 million annually for claims.
But Mobile County Judge Robert Kendall on Thursday refused to OK the agreement, which was reached with attorneys representing smokers nationwide.
Kendall pointed to a Supreme Court decision that set aside a $1.5 billion settlement involving Fibreboard Corp. and asbestos-related claims. That ruling set strict standards for settlements.
Attorneys for Liggett, the smallest of the five major tobacco firms with about 2 percent of the business, had told the judge that bankruptcy loomed if the settlement were denied.
However, after the ruling, spokesman Paul Caminiti said the company was reviewing its options but ''absolutely not considering bankruptcy.''
Under the proposed settlement, Liggett would have paid an amount equal to 7.5 percent of its sales in each of the next 25 years into a fund that would be earmarked for victims who have smoked its cigarettes, such as L&M, Lark and Chesterfield. The fund would be guaranteed payments of $1 million annually.
The proposal also would have limited the amount Liggett would have paid to people claiming harm from its cigarettes.
Attorneys for Blue Cross and Blue Shield, union health funds and others involved in tobacco litigation opposed the settlement, saying the company was in fine financial shape.
After state attorneys general sued cigarette makers to recover the costs of treating sick smokers, Liggett broke with the industry by settling with several states and disclosing key documents on the addictiveness of nicotine.
In May, Liggett's parent company sold its L&M, Lark and Chesterfield brands to Philip Morris for $300 million. That leaves the company with Eve as its only remaining premium brand of cigarettes.

Several recent drug arrests have resulted from the newly formed Governor's Partnership with the Town of South Boston, Virginia State Police and Halifax/South Boston Regional Narcotic Enforcement Task Force.
An undercover crack cocaine operation conducted in the Sinai area yielded one arrest late Friday night.
According to a news release from the Narcotic Task Force office, agents made an undercover purchase of crack cocaine from a suspect in the Westside Trailer Park in Sinai, Friday, July 23.
Then officers performed a "jump-out" arrest of the suspect, identified as Keith Dion Walton, in the trailer park. Additional crack cocaine was allegedly found on the suspect upon his arrest.
The officers secured the scene and checked the area for additional suspects.
"The open air drug market atmosphere of Westside Trailer Park was temporarily suspended while the South Boston Police and State Police-marked cruisers were in the neighborhood and officers were affecting the arrest," commented Task Force Coordinator Richard S.B. Pulliam.
Walton, 33, of Cathy Sue Lane, South Boston, was charged with distribution of crack cocaine and possession with intent to distribute crack cocaine.
He is currently incarcerated in the Blue Ridge Regional Adult Detention Center in Halifax under a $15,000 secured bond, according to jail officials.
On the other side of town that same night, local officers chased down and arrested a local man after he allegedly pointed a gun at the officers while they were on foot patrol in the Honeytree Apartment Complex located along on Hamilton Boulevard in South Boston.
According to reports from the South Boston Police Department, just before midnight, members of the Governor's Partnership with the Town of South Boston, consisting of three Virginia State Troopers and three town police officers, were conducting a foot patrol in the Honeytree Apartment Complex when a man, later identified as Marshall Bowman, 26, of 2309 H Honeytree Apartments, allegedly brandished a firearm at the officers, and then ran away.
The officers chased the man and apprehended Bowman in the middle of John Randolph Boulevard near Ernie's Restaurant.
After retracing the route of the chase, officers reportedly recovered a Lorcin 9mm firearm. The weapon was found in a jammed position.
Bowman was charged with brandishing a firearm, possession of a firearm after being convicted of a felony, having a loaded weapon in the Town of South Boston, and carrying a concealed weapon.
Bowman was jailed under a $2,500 bond pending a preliminary hearing in Halifax County General District Court.
The previous afternoon, what appeared to be an open-air drug deal resulted in the seizure of approximately one-half pound of marijuana and three arrests.
According to South Boston Police reports, shortly before 3 p.m. Thursday, July 22, dispatch received a report of drug dealing in progress near the Fairmont Apartment Complex along Watkins Avenue.
South Boston officers T.C. Spencer and Dennis Barker responded by setting up surveillance, and when they observed suspicious activity, they called for back-up, reports indicated.
When additional units arrived on the scene, some of the suspects reportedly ran.
Assisted by South Boston Police Chief Jim Hall, Lt. H.B. Rice, Public Safety Officer/Administrative Assistant Rick Hess, Investigator B.K. Lovelace, and Halifax/South Boston Regional Narcotics Enforcement Task Force Investigator Jim Binner, officers apprehended Robert H. Perkins Jr., 18, Junior Willie Williams Jr., 20, of Edmonds Street, South Boston, and one juvenile.
Reports indicated that officers chased Perkins to his apartment within the Fairmont Apartment Complex on Poplar Creek Street.
South Boston Police Lt. Rick Loftis said investigators seized approximately one-half pound of marijuana allegedly concealed in the crotch of the juvenile's pants.
The three suspects were charged with possession with intent to distribute marijuana and conspiracy to distribute marijuana.
The two adults, Williams and Perkins, are currently being held in the Blue Ridge Regional Adult Detention Center under a $7,500 and $2,500 bond, respectively.
The juvenile, a 14-year-old male, is being held in a juvenile detention center in Culpeper, Loftis said.
In other reports, the South Boston officers and State Police teamed up on several other arrests Friday.
At 6 p.m., members of the Governor's Partnership arrested Charles Eric Chandler, 18, of Berry Hill Road, South Boston.
Chandler was arrested on Ferry Street in front of the South Boston Police Department and charged with possession of marijuana.
Several hours later while on foot patrol in the Penick Avenue area, members of the Governor's Partnership arrested several minors on underage alcohol and tobacco violations.
The Governor's New Partnership Commission combines police officers assigned from the South Boston Police Department and troopers from the Virginia State Police to work as a "patrol street level crimes enforcement unit," and also works closely with the Task Force to curb street level narcotics traffickers and users.
These units work in addition to the normally assigned patrol officers in South Boston and troopers assigned to Halifax County.

Any way you slice 'em, Halifax County cantaloupes are delicious, and they will be a featured treat at the 19th Annual Virginia Cantaloupe Festival this Wednesday.
For nearly two decades this annual event, organized by the Halifax County Chamber of Commerce, has celebrated Halifax County cantaloupe growers and provided a day full of fun, sun and luscious local melons.
For the past 18 years, the popular festival has taken place in the center of Turbeville cantaloupe growing country on the farm of John Wade, but this year the festivities will be held at the Halifax County Fairgrounds in South Boston.
"In the past the festival was held on John Wade's farm because that farm was in the center of most of the cantaloupe growers at the time," explained Halifax Chamber President Nancy Poole. "But since we started the festival back in 1981, the festival has evolved and other farmers throughout the county are now growing cantaloupes. So the festival has grown and developed into a larger base of producers who provide the festival with cantaloupes."
According to Poole, past festivals had been very successful, but it was time for a change.
"Through the years, the festival has been very, very successful, and the setting (at Wade's farm) was so tranquil. But there have been some problems over the years," she explained.
Mother Nature presented the biggest challenge to the farm setting, as the festival was an open-air event.
"The only time it really rained was in 1982, but there have been intermittent showers through the years, and the weather was always a concern because there wasn't any shelter," Poole said.
Limited access to electrical power and toilet facilities also presented ongoing challenges to event organizers.
By holding the festival at the fairgrounds, Poole hopes many of these and other problems will be alleviated.
"This was not a decision we took lightly. We discussed it at length, and feel we made the right choice," she said. "The fairgrounds offer easy access, better parking, and are recognizable to people outside of Halifax County. Instead of dealing with tents, the fairgrounds have booths that we can serve out of. Plus, we will now have lighting, and can begin later in the afternoon and extend the hours so more people who work in and around South Boston can enjoy the event."
In the past, the Cantaloupe Festival began at 3:30 p.m, and ended at 8:30 p.m. This year the festivities will kick off at 4:40 p.m. and stretch on into the night until 9:30 p.m.
The fairgrounds feature a covered grandstand, which will provide people with relief from the sun and shelter should it rain.
Since the beginning, the Cantaloupe Festival has been the perfect setting for people to kick off their shoes and "cut a rug."
Local band Spot Check Willie will open the festival with its unique blend of blues tinged with rock attitude, and two other bands - The Fantastics and the Band of Oz - will also provide entertainment.
Poole emphasized that there will be ample space in front and on either side of the stage for dancing this year, too.
"There's more room than you'd think. The entire area will be open for dancing. The area in front of the stage is concrete, and there are grassy areas on either side for people who like to dance," Poole said.
And when you need a little refreshment, festival sponsors Coca Cola and Coors Beer will come to the rescue. In addition, there will be a variety of wine coolers, and the Halifax Regional Hospital will provide chilled bottled water.
Of course, cantaloupes will abound.
"It will be served in slices and quarters, and, of course, there will be the perennial favorite - cantaloupe halves filled with vanilla ice cream. I had one of these cantaloupe sundaes the other day at my home, and let me tell you, it was delicious," Poole described enthusiastically. "This year there will be locally-grown fruit cups filled with raspberries, watermelon, cantaloupe and grapes, too."
Golden Skillet Restaurant will provide this year's menu, according to Poole.
"Golden Skillet won the contract, and for the first time ever there will be fried chicken in addition to the barbecue. There will also be potato salad, corn on the cob and rolls," she said.
Because food and beverages will be provided, event organizers request that coolers not be carried into the fairgrounds.
Historically thousands of people have turned out for this annual event, and Poole said she expects this year to be no exception.
"Usually between 2,500 and 3,500 people come. This year we plan to sell 3,000 tickets," Poole said. "Tickets are selling about like they always do. This week will be the mad rush, and we encourage people who want to get a ticket not to wait until Wednesday to do so."
Tickets are available for $25 at the Chamber of Commerce office in South Boston, Best Western, World of Sports, Triangle Florist and Millstone Grocery. For more information, contact the chamber office at (804) 572-3085, or visit the website at www.valopefest.com.
Also, a supervised lock-in will be held for children ages 5 to 15 at the World of Sports on Highway 58, Wednesday, from 2 p.m. until 10 p.m.
While parents are enjoying the Cantaloupe Festival just down the road, their children can have fun of their own for $10 with ultimate bowling, skating, watching the movie "Wild, Wild West," and playing in the Coca Cola modular play unit.
Hot dogs, chips and drinks will be served, as well.
For more information about the lock-in, call (804) 572-6924.

Electing Republicans to Virginia's General Assembly is this year's priority, U.S. Senate candidate George Allen told about 300 guests at a 5th District Committee barbecue here Saturday.
The noon fund-raiser was held at the Black Walnut farm of 5th District Chairman Tucker Watkins.
Redistricting was one key issue the former Virginia governor targeted in calling for a GOP majority, saying redistricting - the redrawing of legislative and congressional districts - should follow the Constitution and districts should be "compact and contiguous."
"Not a district with Portsmouth and Halifax in the same district," said Allen, referring to the previously challenged 18th District. That seat is currently held by state Sen. Louise Lucas of Portsmouth.
Allen also noted that Pittsylvania County had been "busted up" in six ways during the previous redistricting process.
The U.S. Senate candidate also praised Virginia's plan for tobacco settlement funds, one which includes returning some funds to communities to make their own decisions for distribution.
He praised Del. Frank Ruff of Mecklenburg for his role in the tobacco settlement, describing him as working hard to make sure money went to farmers and communities.
On the national scene, Allen proposed looking at the budget surplus the way a good business would.
He proposed protecting Social Security in a fund with monies "not diverted or co-mingled."
He also advocated a strong national defense, and noting recent charges of espionage within U.S. labs, he proposed a missile system to protect the U.S. from "rogue terrorist" nations.
Allen also suggested a tax cut, which he said would allow taxpayers to chart their own course for family and life, as well as be good for the economy.
In the U.S. Senate race in 2000, Allen noted that both he and incumbent Charles Robb have performance records the public can examine.
Allen cited his own record as governor on welfare reform, education, recruiting industry for jobs, courts and juvenile justice issues, among others.
With a current $2.5 million war chest, Allen estimated he would need $6-$8 million total for the Senate race, adding he was receiving support across the state from Republicans,independents and some Democrats.
Southsiders braved the sizzling summer heat Saturday to meet with Allen and GOP candidates from throughout the region at the Black Walnut farm.
In a Mason-Dixon poll conducted last month, Allen led with 49 percent support to Robb's 38 percent with 13 percent undecided.

Start with an imaginary tornado.
Throw in over 100 volunteers from area emergency services organizations.
Bake briskly and steam slightly in mid-July heat and humidity and what you have is a full-scale emergency exercise, complete with victims, downed power lines, uncontrollable dogs, toxic chemicals... and one poor soul slung up a tree.
Halifax County's Office of Emergency Services held its full-scale exercise early Saturday morning with scanners throughout the county being treated to the tune of "a tornado has touched down in the Love Shop area."
From there, fire and rescue crews hit the road, searching for victims, checking for damage and slowly working their way to Lowe's in Centerville where Command Central was set up.
The scenario had the tornado touching down in Highland Hills and Oak Hill subdivision before dancing across Love Shop Trailer Park and into the shopping center area.
Personnel from emergency services were to transport injured patients for medical assistance, search for missing persons and assess damage to buildings.
Also an emergency shelter was set up at the Mary Bethune Complex to house displaced persons and provide additional needed services.
The "tornado" struck Lowe's where a mixture of chemicals available there created a hazardous materials situation and although they did not participate physically in the exercise, HazMat crews from both Danville and Chesterfield were contacted.
Virginia Power also participated in the test by phone from Richmond, responding to downed power lines and power outages.
In all 115 people participated in the exercise.
Organizations, local and state agencies participating included: Halifax County Office of Emergency Services, Halifax County Emergency Dispatcher, Halifax County Sheriff's Office, Halifax County Department of Social Services, Halifax County Public Works Department, Halifax County General Properties, Halifax County Rescue Squad.
Also involved were: South Boston Office of Emergency Services and the Town Manager's office, South Boston Police Department, South Boston Fire Department, South Boston Department of Public Works, Scottsburg Volunteer Fire Department, Turbeville Volunteer Fire Department, Halifax Volunteer Fire Department, Virgilina Volunteer Fire Department, Patient Transport, Inc., RACES Radio Operators.
Also helping were: Virginia State Police, Virginia Office of Emergency Services, Virginia Emergency Services HazMat Regionial Coordinator, Virginia Department of Transportation, Virginia Power, Virginia Cooperative Extension, Red Cross, Southside Community Services Board, Halifax County School System, Halifax County Health Department, Halifax Regional Hospital, Lowe's Stores, and Greased Lightning.
County Administrator Dan Sleeper, who serves as emergency services coordinator, thanked the numerous volunteers who participated, especially those who served as victims.

Bion Technologies, a company developing a system to reduce odor from hog and other livestock operations, will make a presentation of its system Tuesday afternoon in conference room 201 at the Mary Bethune Complex.
County planner Jerry Lovelace said in a release that this is not a formal meeting of either the Board of Supervisors or the Planners, but an opportunity to obtain information on alternative waste management systems.
Representatives of Bion expect their presentation to take about half an hour with an opportunity to ask questions afterwards.
The proposed CAFO ordinance, Lovelace said, requires that applicants submit detailed information on proven odor control technologies.
Bion will include a representative of its technology development division and a staff horticulturist to address the fertilizer end product from their system.
The Bion system flushes manure from barns with water infused with high levels of bacteria, according to the company's press release.
The bacteria bind with the smelly compounds, shutting off the odor.
The microbes rapidly begin breaking down the waste in an initial pond, dubbed a bioreactor.
The waste is then pumped into another pond which fills up with solids over a period of four to 12 months.
These solids create an odorless, soil-like fertilizer.

The South Boston Current Issues Committee will reveal details tonight of a grant award from the Virginia Department of Criminal Justice Services for a school resource officer for the Halifax County Middle School.
Several months ago, community leaders, law enforcement officials, and representatives with the Halifax County School System met to discuss safety measures in Halifax County Schools.
One of the proposals was to place a resource officer at the middle school, while maintaining and perhaps increasing the number of similar officers at the Halifax County High School.
Committee members will also meet with Adelphia Cable representatives Monday evening to discuss revisions to the company's lease agreement with the town.
Although the committee discussed the revised lease agreement during the regular work session last month, Town Council voted it down during the regular meeting earlier this month because it did not contain specific dates.
Adelphia Cable has revised the lease regarding the land where its tower is located on Hamilton Boulevard to include the actual term of the lease (10 years or until 2007) to coincide with the expiration of the franchise.
Committee members will also discuss the details of the new Virginia Department of Transportation (VDOT) policy on installation of signs advising of the maximum penalty for speeding in certain residential districts.
The 1999 General Assembly passed legislation to allow increased fines for speeding in residential areas on certain minor arterial streets.
According to information provided by the South Boston Town Office, the philosophy supporting this change was that certain roads exhibit residential characteristics similar to those on local and collector streets, and in those locations increased fines should apply.
VDOT will now, upon a formal request from Town Council, install and maintain signs on streets with a posted speed limit of 35 mph or lower - such as Route 501 (Halifax Road) and Route 129 (Old Halifax Road) - that advise motorists of a maximum punishment of $200 for exceeding the speed limit.
The meeting will be held Monday, July 26, at 5:45 p.m. in the Town Hall conference room.

Jesse Sam Ferrell of 1095 Middle Fork Trl., Clover died Sunday, July 25 at Halifax Regional Hospital at the age of 80.
Mr. Ferrell was born in Halifax Co. on October 13, 1918, the son of John Henry Ferrell and Hattie Ella Moorefield Ferrell. He was married to Elsie N. Ferrell and was a member and deacon at Rodgers Chapel Baptist Church.
His survivors include his wife; brothers: Billy and Jerry Ferrell of Richmond; sisters: Virginia Ferrell of Richmond, Peggy Owen of Newport News, Doris Clayton of Fayetteville, NC and Sally Downey of Falls Church.
He was preceded in death by a brother, James Ferrell.
A funeral service will be held Tuesday, July 27 at 12 p.m. at Powell Funeral Home Chapel with the Rev. Douglas Spurlock and Rev. Darrell Poole officiating. Burial will take place in Rodgers Chapel Baptist church Cemetery.
The family will receive friends at Powell Funeral Home tonight from 7-8:30 p.m.

Mary Frances Hightower of 423 Crescent Drive, South Boston died Saturday, July 24 at Halifax Regional Hospital at the age of 73.
Mrs. Hightower was born in Halifax Co. on February 19, 1926, the daughter of Glenn and Selma Ratliff.
Her survivors include her sons: Mike Abba of Kannapolis, NC, Mark Abba of Richmond, Larry Abba of South Boston, Robert March of St. Louis, MO, Thomas March of Baldwin, WI; daughter: Yvonne Meyers of St. Louis; brother: Glenn Ratliff Jr. of South Boston; sister: Norma Martin of South Carolina; seven grandchildren and one great-grandchild.
A funeral service was held Sunday, July 25 at Powell Funeral Home Chapel with the Rev. Jack Stewart officiating. Burial took place in the Grace Baptist Church Cemetery.

Sadie Bell Seamster Booth of Brookneal died Saturday, July 24 at Guggenheimer Nursing Home, Lynchburg at the age of 75.
Mrs. Booth was born in Halifax Co. on April 24, 1924, the daughter of Stephen Stone Seamster and Nannie Sue Clay Seamster. She was married to Charlie Booth and was a member of the Highland Heights Baptist Church.
Her survivors include her sisters: Patsy Tharpe of Charlotte Court House, Barbara Williamson of Lynch Station; brothers: Jesse James Seamster of Victoria, John Henry Seamster of Rustburg and Stokely Owen Seamster of Gladys.

A funeral service will be held Tuesday, July 27 at 2 p.m. at Powell Funeral Home Chapel with burial at Mulberry Baptist Church Cemetery.
The family will receive friends tonight at Powell Funeral Home from 7-8:30 p.m.

Waltraut "Trudy" Elizabeth Yancey of 208 Crestleigh St., Rollsville, NC died Sunday, July 25 at Rex Hospital in Raleigh, NC at the age of 68.
Mrs. Yancey was born in Germany on December 14, 1930 and was married to Oscar Yancey.
Her survivors include her sons: Kenneth Dale Martin of Rollsville and Edgar Thomas Martin of Raleigh; daughter: Evelyn Martin of Wake Forest, NC and four grandchildren.
A funeral service will be held Tuesday, July 27 at 4 p.m. at Powell Funeral Home Chapel with burial in Halifax Memorial Gardens.
The family will receive friends tonight at Powell Funeral Home from 7-8:30 p.m.