Before 1946 there was no regulation of prices warehousemen could charge for services in connection with marketing burley tobacco. In 1946 the General Assembly enacted what are now Code §§ 61-154 and 61-155, which established a maximum commission allowable to burley tobacco warehousemen; charging in excess of this statutory maximum was made a misdemeanor. These maximum charges were established to protect farmers, to provide the warehousemen a fair return on investment, and to bring warehouse charges in line with services rendered. Since 1946 the agricultural economy of the nation and of Virginia has undergone great change. Costs in farming and in warehousing have advanced materially. Both farmers and warehousemen have had to meet increased costs and taxes.

In order to determine what should be done to improve the situation both in the best interests of the farmer and the warehousemen Governor Harrison by letter of April 7, 1964 requested the Virginia Advisory Legislative Council to make a study and report upon the burley tobacco industry. The subjects to be studied included: the marketing, the sale of such tobacco at warehouses, the economic problems involved in all aspects of the industry, the reasonableness of commissions charged by warehouses, and whether or not there should be changes in the rate or amount of charges such warehousemen may collect.

The Council selected John H. Daniel, member of the House of Delegates and a member of the Council, to serve as Chairman of the Committee to make the initial study and report to it. The following were chosen to serve with Mr. Daniel on this Committee: Richard D. Chumney; then Commissioner, Department of Agriculture and Immigration; Paul C. Edmunds, III, Halifax, a businessman who has interests in several bright tobacco warehouses in Southside Virginia; Robert S. Orr, Dryden, member of the. House of Delegates and a tobacco farmer; William H. Woodward, City Attorney of Bristol; and Dr. H. N. Young, Director, Virginia Agricultural Experiment Station, Blacksburg. John B. Boatwright, Jr. and Frank R. Dunham served as Secretary and Recording Secretary, respectively, to the Committee.

A review was made of the problems under study and existing legislation relating to burley tobacco warehouses both within and without the State. A public hearing was held in Abingdon after giving full publicity thereto in the area. This hearing was well attended and the views of the farmers and warehousemen were given in detail.

The Committee completed its study and presented its report. The Council has carefully considered the information and suggestions presented to it, and make the following recommendations.

I. §§ 61-154 and 61-155 of the Code of Virginia should be repealed by the 1966 General Assembly.

II. The Council should continue this study, with sufficient funds to survey the burley tobacco industry, and make a report thereon to the General Assembly of 1968.