The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1894-02-15
THE PEANUT INDUSTRY.
Hon. Walter Clark Tells How the
Factories" Rob the Producer
and Suggests a Remedy.
From n. G. January Bulletin ]

economist, has recently written an ad-
mlrable article, pointing out the uses
Of the peanut, especially as producer
of oil. He it was, who years ago
pointed out the value of cotton seed
for its oil and its manurial and feed
qualities as cotton seed meal and the
value of the bulls. Prior to this, on
many farms cotton seed was disposed
OF as waste. Now Mr.. Atkinson
predicts the future usefulness OF the
peanut as an oil producer and in other
ways.
But before we 60 into its produc-
ton extensively, attention should be
called to the syndicate which controls
the sale of the nuts, making its
members millionaires and the pro-
ducers poorer. The number Of peanut
buyers is small. These have formed
trust or syndicate. By this combina
ton it is decreed that I" farmers stock"
is not salable and all peanuts before
becoming marketable must 60 through
what they are pleased to dignity with
the name of peanut "factory." By
another of their rules, no factory will
take the nuts on toll but they must be
sold to the owner of the factory. This
delivers the farmer alive into their
hands.
The peanuts are sold on the market
at price fixed by the syndicate which
is at present about cents per pound.
They are run through the L" factory
at a total cost of one fifth of cent
per pound, and are then sold to the
retail merchant by wholesale at 4 to 7
cents per pound, according to locality.
The profits being pooled are presuma-
bly, divided. No wonder the farmers
find no profit in making peanuts and
that the factory owners are becoming
millionaires. Farmers generally raise
small crops of peanuts and each not
feeling largely interested, as a class
they are ignorant of the gross imposi-
| ton practtced upon them in this, as in
some other matters. Imposed upon
by the word " "factory,'' they are led
to think that there is some costly and
mysterious process in preparing the
peanuts for market. There is nothing
of the kind. The peanuts are poured
into revolving cylinder which polishes
them and blows out the pops and dirt.
AS they come out, they fall upon a
broad, endless belt which carries them
along to be bagged. Negroes stand
on each side of this moving belt and
with paddles deftly sort the peanuts.
They are then bagged and sold for
more than double the price paid the
farmer. The process of thus preparing
them costs not more than one fifth of
cent per pound.
1t was also thought that the process
was not only mysterious and required
skill-which we see is not so-but
that the machinery was expensive.
But it is said by those who know that
the machinery of one Of these SO
called /" factories" will not cost more
than $500 to $500, and that tine whole
plant, including machinery, building,
engine everything-should not cost
over $4,000 to $4,000. 1t was also
urged that there was patent on the
machinery. A party who was bold
enough to defy this claim and estab-
lish his own factory, demonstrated in
a suit in court that there was no
patent and thereupon, it is said, the
syndicate took him in and he is now
one of our oppressors and fast becom-
ing a millionaire.
As last resort, to discourage put
ting up factories, it is given out that
large capilal is required to establish
brand and put it on the market. On
the contrary the writer has recently
had correspondence with numerous
dealers from San Francisco to Boston,
and from New Orleans to Montreal,
and readily had offers varying from
AZ to J cents for nuts, without any
question as to brand. The only
requirement was that they should be
sound and factory" stock. The
syndicate have educated the public to
require the latter as it places the trade
in their hands.
If the farmers generally knew the
above facts, they could readily eman
cipate themselves from selling at 2
cents per pound peanuts which, with
the addition of one-fifth of a cent
" factory" work, are sold at 4 to I
cents, by each neighborhood putting
up factory or by some one putting
it up to run for toll. But these facts
have been persistently suppressed.
Where at very rare intervals factory,
out of the sea port town, has been put
up ii is said that it always mysteri-
ously and suddenly stops. Those who
know say that this is done by the
syndicate paying the owners of the
new factory sum equal to the esti-
mated profit Of the tolls which would
be likely to come in if the factory was
run. Fortunately there is no internal
revenue tax on factory peanuts, as on
manufactured tobacco by which the
factory owners can keep monopoly.
! This is one of the many ways in
which the farming class is plucked.
Will not farmers who are interested
in peanut raising look into this matter
and provide each neighborhood fol
itself, with a factory for the next season
at which peanuts may be prepared fol
market for toll? "Who would be
free themselves must strike The blow.
WALTER CLARK.
Don't waste time, money, aid health
trying every new medicine you may Sc,
advertised 10 the papers. II the cause o
your trouble is in the blood liver, stomach
or kidneys take Ayers Sarsaparilla q