Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-09-09
THE PEANUT COMBINATION.
A Defence from Ono Of Its Friends VINO
Claims Injustice IL Done the Wa. Assn.

Cinims InJus IL Done inc ne "s' :"
SMITHFIELD. VA, September i. 1894
Editor Journal OF Commerce and Com
mercial Bulletin:
An article In your paper OF August 29th'
headed THE Peanut Trusts New Move
does injustice to the Virginia Peanut AS
ISOLATION
The Virginia Peanut Association was
formed last spring. and commenced pus'-
ness April 18th. and was necessity, pc
cause the number of factories HAD In
creased faster than the business. and IN
their eagerness to keep their factories at
work the various companies had sonciteu
business from the small buyers In all
sections Of the country. selling them AT
about the same prices as to the wholesale
dealers, and thus driving great many
OF the latter class out or the business.
The large dealers were also AFRAID 10
handle peanuts, because OF the constant
cutting Of prices by the factories ana 'he
unreliable quality OF the goods offered 4;
some factories putting up goods OF quality
inferior TO Others. but quoting them as same
grade as the best. This cutting prices Of
cleaned goods reacted on the farmers. be-
cause the cleaner. having TO sell his goods
Mt less price, naturally tried TO buy them
less and unless the supply was small did
so: whereas, II the association Is able TO
maintain prices Of cleaned goods, factories
will be able to pay farmers fair prices
for their stock. without charging dealers
unreasonable rates for cleaned goods. The
late date OF the season on which the as
ISOLATION commenced business has not
given them chance 10 show its effect on
farmers stock yet. because most OF the
cleaners had supplies at the time to last
some months. but another year will show
It's effects In this line.
The association Is In no way trust. as
/ understand what trust Is. Each fac
tory Is run Independently, and buys its
stock in large or small quantity at what
ever price 1t chooses to pay, its main
object being 10 keep the market at steady
prices as much as possible. TO make the
various grades Of cleaned peanuts or
uniform first-clsss quality. to bring the
business up to a standard that will induce
the larger wholesale and tobbing dealers
In groceries. confectionery, and fruits TO
handle these goods and distribute them to
the smaller trade and retail dealers. We
believe these to be worthy objects in any
business, and hope to attain them as far
as possible. The association expects TO
have competition in business, and does
not intend 10 go outside or fair ana legl-
innate business means TO meet 1t, but
thinks, by being able to largely reduce
expenses, by concentration ana better
means OF information, TO handle its busi-
ness at n minimum cost. thereby tnaking
its profits very large from doing busi-
ness economically. The few dealers not
in the association has not been refused
admittance, nor have they been urged To
Ioin IT, / don't suppose there would De
any objection TO having them come IN on
an equitable basis If they wished TO DO 3d.
NO JUST CAUSE.
don't think there is any just cause
for complalnt because the rate OF freight
on less than carload lots Of peanuts mas
been made more than on carloads; put
on the contrary, think great injustice mas
heretofore been done the large dealers III
the seaboard cities of the East and North,
in this respect. and we have had ire
uuent complaint of this injustice from
them IN past years. All OF the transporta-
ton lines from Virginia have always made
a difference Of 10 to 80 cents or more be-
tween carloads and less to all points (ac-
cording 10 distance). except to northern
and eastern seaboard cities. The Old Do
minion Steamship Company and the Penn
sylyania railroad have the past I'VE years
charged about u cents difference between
carloads and less TO such interior towns as
Albany, Buffalo. Syracuse, Rochester,
Binghamton. Scranton. and other interior
towns Of New York. Pennsylvania, New
England. and Canada, giving the large
buyers in these towns an advantage which
they denied New York. Boston, Phila-
delphia Baltimore, Providence, and other
seaboard cities. / don't think this right,
and cannot understand how any fair-mind-
ed person can so regard II. ! don't know
Of whom you obtained your information,
but the intimaton that the association IN
tends to assume an arbitrary policy III
business is positively without foundation
in fact. I enclose you their circular dated
June 9Th, in which such a course is
denied. and | am sure they have no idea
of adopting It. | think the person making
the charge has no grievance against the
association but used his opportunity TO
sneak an unkind word against II, and to
give business in which he has or feels
more interest some gratuitious advertising.
have recently seen most OF the large
dealers in New York, Boston, Providence,
and Philadelphia. and all Of them ex-
pressed themselves as highly pleased with
the manner in which the association is
doing it's business. and all Of them are
giving IL their patronage, and instead OF
its losing ground at any time II has been
steadily gaining. The only exception 20
this is one dealer. who said he did but
little in peanuts. and that he had interests
either directly or indirectly, with other
peanut factories. A DEALER.