The Fayetteville Observer
Sunday, July 1, 2007
www.fayobserver.com

Inside Politics: Plant closing profitable for Hayes

By Don Worthington

The Marlboro Man is leaving North Carolina. On his way out he emptied his pockets, leaving a fistful of dollars for U.S. Rep. Robin Hayes.

How much?

Between $32,000 and $141,000 in stock profits, alleges the Democratic Congressional Campaign Committee.

The profits came as Altria stock prices rose after announcing that the Philip Morris plant in Concord would close.

"We're not singling Hayes out for owning stock," said Kyra Jennings, the campaign committee's regional press secretary. "The point is he is out of touch and doesn't know what losing a job feels like."

The decision to close Philip Morris' Concord plant "lined his pocketbook," Jennings said.

Jennings' job is to make Hayes look bad. The committee has targeted North Carolina's 8th Congressional District, investing time, money and as much publicity as it can generate to oust Hayes, a six-term Republican.

On Monday, the committee is starting a five-day ad campaign targeting Hayes and 13 other Republicans. The focus is their records on veterans' care.

"Constituents deserve to know that the Republican record on veterans is all talk and no action," said committee Chairman Chris Van Hollen. "American troops and veterans deserve more than patriotic speeches this Independence Day."

Hayes' office said he learned of Altria's decision to close the Concord plant the same way everyone else did — from media reports.

"Getting the news... was like a punch in the stomach," Hayes said.

The Concord plant makes 17.1 million cigarettes an hour — 155 billion a year. Most of them are Marlboros.

It employs 2,500 people, who make between $17 and $29 an hour. The plant contributes 13 percent of Concord's tax revenues.

Hayes has about $5 million in Altria stock, according to personal disclosure forms. The Democratic Congressional Campaign Committee reported that Hayes and his family own between $2.5 million and $11 million in Altria stock, based on filings with the Federal Election Commission.

The value of the stock increased 88 cents per share when the plant closing was announced last week.

Hayes' office said that the stock is held in three family trusts and that Hayes is a beneficiary of the trusts. "They are not personal assets," said Hayes' press spokeswoman, Amanda Little.

What the committee didn't report is that 30 other members of Congress own Altria stock, including Massachusetts senator and former presidential candidate John Kerry. North Carolina Sen. Elizabeth Dole also owns Altria stock.

Jennings said it is not about other people who own stock, but about Hayes and his constituents. "He doesn't understand working families," she said.

Hayes is trying to get Altria to reconsider its decision. He has asked state and local politicians to join in his effort.

"While there is no guarantee that we can change Philip Morris' plans with an incentive package, the cost of doing nothing is the guaranteed loss of 2,500 manufacturing jobs in North Carolina."

The closure is the second in Cabarrus County in four years. In July 2003, Pillowtex announced it was closing its Kannapolis textile plants, putting 4,800 people out of work. The textile plant site is being redeveloped as a bio-technology center.