By KEITH STRANGE
Forty-one warehousemen and women from all of the flue-cured growing states attended a meeting in Raleigh, N.C., Wednesday night to ban together warehouse owners for a legal battle against Stabilization.
Those in attendance feel that they have been effectively put out of business by a decision made by Stabilization to operate 14 warehouses during the 2002 marketing season.
Many warehousemen and producers are angry that Stabilization used what they feel is their money to fund the 14 marketing centers, and are planning a lawsuit to combat what they feel is an injustice.
The meeting was hosted by Mac Bailey, CEO of S&M Brands, makers of Bailey's cigarettes.
"We are going to ask Stabilization to reconsider, and to be fair with the other warehousemen.
"And if they do not, we are prepared to file suit immediately," Bailey said.
When asked if he thought that the warehousemen had a good chance of winning, Bailey said that he was confident.
"To me, I would be very discouraged if the legal system didn't protect the men and women who worked hard and have been in the auction system all their lives," he said.
Bailey added that once a jury hears the evidence, he thinks that they will do what's right.
"All we are asking for is for Stabilization to treat the farmers the same even though they would like to sell at warehouses not operated by Stabilization," he continued.
Andrew Shepherd, president of District 10 for Stabilization, said that he doesn't expect the auction system to continue as it is currently set up.
"Tobacco marketing is experiencing an evolution.
"What we've got right now won't be what is kept in the future, but it's a necessary step.
"I think that we're doing the right thing," Shepherd said. "We may have been able to do some things differently to not have ruffled some feathers, and could have handled it a little better, but I think that what we are doing is necessary."
One of the major points of contention between the two groups is that of marketing commission.
A farmer selling at a Stabilization will not be charged a fee to market their tobacco, while any independent warehouses will have to charge a fee in order to make a profit.
"We aren't asking for anything but to be treated fairly," said Charlie Payne of Planter's Warehouse in South Boston.
"We want to be given the chance to survive on a level playing field," he continued.
"These farmers have participated in (Stabilization) all along," said Payne of the New Planters Warehouse.
"What they are doing is taking the farmer's money and running their own warehouses while at the same time putting other warehousemen out of business," he charged.
Payne said that although Stabilization claims it is trying to save the auction system, "the South Boston market is trying to save the auction system, too."
Payne said that what he was fighting for was not only to save his warehouse and the auction system, but to keep tobacco money in Halifax County.
"I think it's vital to the community and the county to keep the warehouse markets open," he said.
Last year 67 warehouses were actively operated independent of Stabilization.
Bailey opened the meeting, telling those in attendance that he was here to "right a wrong" done to the warehouse auction system in NC,Va,SC and Ga by Stabilization.
He says that although Stabilization is not the government, they have aspects of their operation that could be considered governmental.
"And they act as a private entity also," Bailey added.
Stabilization is an agricultural Co-op that is partially funded by a government agency and owned by the farmers who are its members.
Shepherd said that Stabilization is not funded by any government agency.
"We do borrow money to fund the price support operations, but we are not funded by any government agency," he said.
"We are all members of Stabilization," Bailey said.
Stabilization said that they set up certain criteria that they used to determine which warehouses they would operate.
Shepherd said that he didn't know whether any of the other warehousemen were consulted before the decision was made.
"The board made the decision," he said.
Stabilization tried to economically and geographically locate the marketing centers so that the farmers wouldn't have to drive more than 50 miles to sell their tobacco, according to Shepherd.
"It was a hard decision for our board to make," he said of opening just 14 marketing centers.
Bailey has previously voiced questions as to whether the criteria was the true yardstick for choosing which centers to keep open.
"They said that they were searching for a modern facility. But in Danville, Motley's Warehouse is nice, but Holland's is much newer.
"That leaves me to wonder what is going on behind the scenes," he said.
Bailey said that this is just one example of the farmers being misinformed as to the guidelines used by Stabilization.
Much of Stabilization's criteria have not been met by certain warehouses, accuses Bailey, yet they were among those chosen to operate.
"Wasn't there a fairer method that could have been used by Stabilization in making its choices?" Bailey asked.
He wonders if Stabilization couldn't have just reimbursed all warehouse owners the costs and fees charged to the farmers.
"They have done it for the 14 newly designated marketing centers," Bailey said.
"This would have certainly been fair, and save Stabilization money in overhead, repairs and salaries that will need to be paid to the 14 chosen ones," he added.
Bailey noted that this would also allow all the warehouses to remain in operation.
Shepherd and Hamm said yesterday that reimbursement would be impossible.
"I don't see how it would be possible at this late date," Shepherd said.
"For us to be able to reimburse the farmers their commission fee, we need to be in charge with fiduciary and management capabilities, and we can't do that if it's run as a private business," he added.
"We're not going to reimburse a business without having some say as to how it's run."
The question on everyone's mind at the meeting was what they could do about the Stabilization decision.
"We need to fight for our rights. To join together in fairness," Bailey said.
"This is a fight about principle," he added.
When asked if they could win the fight, Bailey said that he didn't know, but is willing to try.
Many warehousemen and women spoke up Wednesday and said that they are willing to fight and to contribute to a legal fund which Bailey has established in order to combat the Stabilization move.
Charlie Payne, the owner of Planter's Warehouse in South Boston said that he sold over 3 million pounds of leaf in the 2001 season.
"Nobody came to me, nobody ever called about the decision," Payne said. "How is this fair?"
Payne said that he wants to know why his operation was not chosen since he had the largest designation of any warehouse in Virginia in 2001.
Billy Yeargin III, owner of Yeargin Tobacco Warehouse in Oxford, NC, said that he was told by a representative of Stabilization that last year's Pilot Program, during which Stabilization operated two warehouses, would be the "saving grace" for warehouse owners.
Yeargin said that he was told that he didn't get designated as a marketing center this year because of the condition of his warehouse.
"Yet Danville was designated and is much more need of repair than my warehouse," Yeargin said.
Shepherd has said previously that the Stabilization staff determined where the centers should be located.
If Virginia had only had one center, Shepherd said, it would likely have been in South Boston or Clarksville.
"But we didn't want the producers to have to travel so far to market their tobacco," he said.
"It was pretty cut and dried as to where to put them," he added.
Many of those in attendance Wednesday night said that they had attempted to contact Stabilization, to no avail.
After hearing the concerns of the warehousemen, Bailey said that he feels that the marketing center designation was "a political move" on the part of Stabilization.
He doesn't think talking will do any good.
Bailey said that "Stabilization needs to correct the wrong they have committed, and this may have to be done in a court of law."
"I'm doing this for the principle," Bailey said. "For the warehousemen and the farmers."
He closed the meeting by telling the concerned warehousemen, "We are gonna take this fight and win it."

Hailed as one of the nation's "fastest growing, family-owned chains," Sheetz convenience/gasoline has entered into a contract to purchase a 1.43-acre tract at the southwest corner of Highways 501 and 58 in Riverdale. According to corporate officials in Altoona, Pa., where Sheetz is based, the new Riverdale complex is expected to be in operation by this summer.
The property belongs to the R.O. Harrell family and includes a former service station and a second building now being used by a craft shop.
The land also includes a small portion of property that is in use as a truck terminal by R.O. Harrell Inc.
Rick Harrell, president of the trucking firm, said yesterday that he would be moving his operation to a 42-acre site on Highway 58 west adjoining the new Riverstone Business and Industrial Park.
Neither party would disclose the purchase price of the land but Sheetz officials say that, excluding land, their investment would be approximately $1.5 million.
Before construction can take place, a land development plan must be submitted and approved by the county planning commission. The property lies within a 100-year flood plain and, along with raising the elevation, such issues as property setbacks, lighting, water, sewer and highway access must be addressed.
The contract for purchase between Sheetz and Harrell does not include the 3.5 acres that Harrell uses as a terminal for the approximate 50 road tractors and 165 trailers his company operates.
That property, said Harrell, is still for sale.
Sheetz operates approximately 270 convenience/gasoline stores in Pennsylvania, Ohio, West Virginia, Maryland and Virginia. The company ranks 114 on Forbes 500 List of Top Private Companies and projects a 10 percent annual growth rate over the next six years.
The South Boston store will be similar in design to one that Sheetz recently opened in Danville on Riverside Drive (U.S.58).
The South Boston Sheetz will have nine covered gasoline pumps and a "high-tech" convenience store where customers can order their food item with the touch of a finger on an interactive picture menu.
Sheetz prides itself in the active role it plays in community service. Since 1991, Sheetz has raised over $1 million for the Special Olympics organization and over $2 million for the Sheetz Family Christmas program since 1992.

Members of South Boston Town Council termed a meeting with members of the Dixie Inc. Board on Tuesday cordial and constructive.
Councilmen Carroll Thackston, Coleman Speece and Chris Elliott attended a meeting of the Dixie Inc. Board at the invitation of Dixie Inc. President Robert Hatcher Jr.
"We had a friendly, constructive meeting...a healthy discussion," said Speece.
"They indicated to us a genuine interest in getting things resolved and going forward."
Hatcher had invited council members to a meet with them "so that we may explain in further detail the reasons for many of our responses to council's letter."
A letter to Hatcher was sent in January by South Boston Mayor Glen Abernathy outlining council's recommendations for improving the overall operation of Dixie Inc.
Those recommendations were formulated as a result of council's meetings with concerned parents and coaches with children involved with the Dixie Inc. baseball programs, and with Dixie Inc. board members and supporters.
Among the major recommendations were a new, streamlined set of by-laws, the election of a new, more diverse board of directors, a financial audit performed annually and immediate and long-range attention to safety issues at the Day Complex.
"The meeting went very well," said Thackston. "The main reason we went was to clear up any misunderstanding as a result of our letter."
Thackston explained that Hatcher's group may have misinterpreted council's recommendation that "no future [financial] obligations should be made until all current and past due obligations are paid."
"What council meant was capital, not operational expenses (ie. uniforms, equipment)," continued Thackston.
Both Thackston and Speece said as many as 10 members of the Dixie Inc. Board were at the meeting, including board mainstays Bert Mills and Mason Day.
"I got the feeling that several board members would welcome 'new blood' in the organization," added Thackston.
"The key is getting more parents and coaches involved," said Thackston.
He said Dixie Inc. indicated a desire for council members to help in recruiting potential board members.
"Any organization can profit from new and fresh ideas," said Thackston.
Town Council has requested that Dixie Inc. initiate action to formulate new by-laws, approved by council and the general membership by April 15.
It has also set an April 15 deadline for Dixie Inc. to initiate action to formulate and initiate financial system procedures as outlined by council in its recommendations.
Hatcher could not be reached for comment.

A 22-year-old Halifax woman was convicted of involuntary manslaughter Tuesday, the charge stemming from an automobile accident last June that took the life of former Halifax County High School athlete Teasha Chakele Paniel.
Rochell Denise Chandler was convicted after a bench trial in Halifax County Circuit Court before Judge Charles L. McCormick III.
A charge against Chandler of unintentionally and unlawfully causing the death of Paniel while under the influence of alcohol was dismissed.
The single-vehicle accident that claimed the life of Paniel occurred in the early morning hours of April 29, 2001, when a car operated by Chandler ran off the left side of Route 744 (Hyco Road), .4 of a mile east of its intersection with Route 658.
Virginia State Police spokesman said Chandler lost control of the car and it ran off the right side of the road and struck two trees.
Paniel was ejected from the vehicle, according to police, while Chandler was seriously injured in the accident.
Chandler is free on bond until presentencing in the March term of court.
A 39-year-old Nathalie man was convicted Tuesday of a felony third offense DUI and driving after having been declared an habitual offender.
Judge McCormick sentenced Samuel William Jordan to five years in prison for the felony DUI conviction with all but three months suspended, conditioned on Jordan's good behavior for five years.
Jordan was sentenced by the court to 12 months in jail for the habitual offender conviction, making a total effective jail sentence of one year and three months.
· Robert Gene Long, 39, of Clover, was convicted Tuesday of the unauthorized use of an auto belonging to Michelle Nelson, the result of an amended indictment.
Long was also convicted of an amended indictment charging him with misdemeanor driving on a suspended operator's license.
The court also convicted Long of misdemeanor DUI and misdemeanor eluding a law enforcement officer.
Long is free on bond until a presentence report in the March term of court.
· Benjamin James McKinney, 24, of Scottsburg, was convicted Tuesday of two amended indictments, including a misdemeanor second offense of DUI and misdemeanor eluding police.
Judge McCormick sentenced McKinney to 12 months in jail and a $300 fine for the DUI conviction, suspending all but 60 days, conditioned on McKinney's good behavior for 12 months.
McKinney was additionally ordered by the court to pay a $250 fine for the eluding police conviction.
The court ordered McKinney to serve a probationary period of 12 months through Halifax-Pittsylvania Court Services, suspended his operator's license for three years and ordered him to perform 60 hours of CDI service.
· James Vaughan aka James Still Vaughan, 41, of South Boston, was convicted Tuesday of an amended indictment charging him with the misdemeanor assault and battery of Paul Tate.
The court sentenced Vaughan to 30 days in jail, with all time suspended, conditioned on Vaughan's good behavior for 12 months.
· Tony Curtis Lloyd, 48, of Clarksville, was convicted Tuesday of an amended indictment of a misdemeanor second offense of DUI.
Judge McCormick suspended Lloyd's operator's license for three years, authorizing a restricted license after four months if Lloyd goes to VASAP.
The court ordered Lloyd to pay a $300 fine and perform 60 hours of community service.
· Amy Vernon Barnett, 29, of Alton, was convicted Tuesday of an amended indictment charging her with attempted grand larceny/obtaining money by false pretenses.
Barnett is free on bond pending presentencing in the March term of court.

A 22-year-old Halifax woman was convicted of involuntary manslaughter Tuesday, the charge stemming from an automobile accident last June that took the life of former Halifax County High School athlete Teasha Chakele Paniel.
Rochell Denise Chandler was convicted after a bench trial in Halifax County Circuit Court before Judge Charles L. McCormick III.
A charge against Chandler of unintentionally and unlawfully causing the death of Paniel while under the influence of alcohol was dismissed.
The single-vehicle accident that claimed the life of Paniel occurred in the early morning hours of April 29, 2001, when a car operated by Chandler ran off the left side of Route 744 (Hyco Road), .4 of a mile east of its intersection with Route 658.
Virginia State Police spokesman said Chandler lost control of the car and it ran off the right side of the road and struck two trees.
Paniel was ejected from the vehicle, according to police, while Chandler was seriously injured in the accident.
Chandler is free on bond until presentencing in the March term of court.
A 39-year-old Nathalie man was convicted Tuesday of a felony third offense DUI and driving after having been declared an habitual offender.
Judge McCormick sentenced Samuel William Jordan to five years in prison for the felony DUI conviction with all but three months suspended, conditioned on Jordan's good behavior for five years.
Jordan was sentenced by the court to 12 months in jail for the habitual offender conviction, making a total effective jail sentence of one year and three months.
· Robert Gene Long, 39, of Clover, was convicted Tuesday of the unauthorized use of an auto belonging to Michelle Nelson, the result of an amended indictment.
Long was also convicted of an amended indictment charging him with misdemeanor driving on a suspended operator's license.
The court also convicted Long of misdemeanor DUI and misdemeanor eluding a law enforcement officer.
Long is free on bond until a presentence report in the March term of court.
· Benjamin James McKinney, 24, of Scottsburg, was convicted Tuesday of two amended indictments, including a misdemeanor second offense of DUI and misdemeanor eluding police.
Judge McCormick sentenced McKinney to 12 months in jail and a $300 fine for the DUI conviction, suspending all but 60 days, conditioned on McKinney's good behavior for 12 months.
McKinney was additionally ordered by the court to pay a $250 fine for the eluding police conviction.
The court ordered McKinney to serve a probationary period of 12 months through Halifax-Pittsylvania Court Services, suspended his operator's license for three years and ordered him to perform 60 hours of CDI service.
· James Vaughan aka James Still Vaughan, 41, of South Boston, was convicted Tuesday of an amended indictment charging him with the misdemeanor assault and battery of Paul Tate.
The court sentenced Vaughan to 30 days in jail, with all time suspended, conditioned on Vaughan's good behavior for 12 months.
· Tony Curtis Lloyd, 48, of Clarksville, was convicted Tuesday of an amended indictment of a misdemeanor second offense of DUI.
Judge McCormick suspended Lloyd's operator's license for three years, authorizing a restricted license after four months if Lloyd goes to VASAP.
The court ordered Lloyd to pay a $300 fine and perform 60 hours of community service.
· Amy Vernon Barnett, 29, of Alton, was convicted Tuesday of an amended indictment charging her with attempted grand larceny/obtaining money by false pretenses.
Barnett is free on bond pending presentencing in the March term of court.

Photographer Meredith Davenport captured the International UNICEF Photo of the Year Award for 2001 with her entry, "Siviani on the sofa."
The award was presented in Berlin.
Davenport is the granddaughter of Mrs. R.O. Harrell of South Boston and the daughter of Bobbie Harrell Taylor of North Carolina.
The photographer is currently in Sudan on assignment for National Geographic.
Davenport's winning photo shows a nine-year-old, handicapped boy from Costa Rica sitting on a sofa and protecting his eyes with his right hand.
The photo stems from a series of pictures on the everyday life of handicapped children in Costa Rica.
"This portrait is not meant to arouse pity but rather to reflect Siviani's independent personality," Davenport explained. "I have experienced Siviani as a person that expresses his ideas and wishes in his very own way."
UNICEF's patroness Christina Rau personally presented the award to Davenport in Berlin.
"UNICEF's photo award is to intensify public interest in children's fate and lives. The pictures awarded are elaborate and fascinating photos, captivating the spectators and making them wonder how the children's lives might really be," Rau explained during the awards ceremony.
The UNICEF prize is given in cooperation with the magazine GEO and Leica Camera PLC for photos of highly artistic standards illustrating children's lives and personalities in an extraordinarily intensive way.
Apart from the winning photo, the six-member jury specially honored three other photographers among well-know photo specialists: Jan Grarup from Denmark for his photo of child soldiers in Palestine, the German photographer Vincent Kohlbecher for his photo of Romanian street children as well as the South African photo artist Roger Ballen for his portrait of a sleeping child.
Davenport is a graduate of the Rochester Institute of Technology in New York.

Elmer Custer Waltman

Elmer Custer Waltman, 66, of 1928 Ringgold Rd., Ringgold, died February 4 at his home.
Mr. Waltman was born June 11, 1935, in Halifax County the son of the late Charles Waltman and Virginia Hood Waltman Loftis and was married to Alice Edmonds Waltman.
He was a member of Cedar Grove United Methodist Church of Alton and a member of the United Rubber Workers. Mr. Waltman was retired from Goodyear Tire and Rubber Mfg. Co. and was a Veteran of the US Navy.
Survivors include his wife; two sons, Neil Custer Waltman of Ringgold and Steven Mitchell Waltman of Gibsonville, N.C.; his stepfather, Stuart Loftis of South Boston; three sisters, Katheryn King of Cluster Springs, Virginia Hackney of South Boston and Mary E. Yearty of Scottsburg; two brothers, Charles Waltman of South Boston and Roy Waltman of Wilmington, N.C.; and three grandchildren. Other than his parents, he was preceded in death by a brother, Sherman Waltman.
Funeral services for Mr. Waltman were held February 6 at 2 p.m. at Cedar Grove UMC with the Revs. Mike Sullivan and David LeFon officiating. Burial with Military Honors by American Legion Dan River Post #1097 followed in Virgilina Cemetery, Virgilina.

Bertha 'Betty' Capps Fallen

Bertha 'Betty' Capps Fallen of 3131 Coles Ferry Rd., Nathalie, died February 5 at Virginia Baptist Hospital.
Mrs. Fallen was born in Washington, D.C. the daughter of William Capps and Marjorie Bernard Capps and was married to Clayton Fallen. She was a member of Ellis Creek Baptist Church.
Survivors include her husband; three daughters, Dianne Deaton of Charlotte County, Anita C. Wilmouth of Centerview, Mo. and Mary Jane Shute and husband, Bob of Palm Harbor, Fl.

Services for Mrs. Fallen will be held today, February 8 at 1 p.m. at Ellis Creek Baptist Church with the Rev. W.D. Mills officiating. Burial will take place in the church cemetery.

Myrtle Rebecca Wilmouth Wilbourne

Myrtle Rebecca Wilmouth Wilbourne, 96, of Salem, died February 6 at Salem.
Mrs. Wilbourne was born in Halifax County on January 12, 1906, the daughter of Oscar Thomas Wilmouth and Etta Lucy Gravitt Wilmouth and was married to Henry Elmer Wilbourne Sr. She was a member of Union United Methodist Church, Halifax.
Survivors include six grandchildren, Bryant and Jackie Wilbourne of San Antonio, Texas, Patricia Wilbourne of IL., Forrest Wilbourne of South Boston, Becky and Paul Allen of Coventry, England, Anthony and Donna Wilbourne of Salem and Stephanie and Billy Bailey of Disputanta; 14 great-grandchildren; six great-great-grandchildren; four sisters, Ophelia Epps and June Williams, both of South Boston, Ethel Wilborn of Duluth, GA. and Garnett Mills of Wilson, N.C.; one daughter-in-law, Zelma Wilbourne of Tampa, FL. She was preceded in death by her husband; one son, H.E. Wilbourne Jr.; three brothers, Craddock, Thomas and Fenton Wilmouth; and two sisters, Virginia Dixon and Mary Ford.
Graveside services for Mrs. Wilbourne will be held today, February 8, at Halifax Memorial Gardens at 4 p.m. with the Rev. Shelton Miles officiating.

The family will receive friends at Powell Funeral Home today from 2:30 until 3:30.
Those wishing to give memorials are asked to consider a charity of your choice.