The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1897-03-20
PASSING OF THEPEANUT TRUST
It Contained None Of the El1nents Of Suc
cessful Trust--A Dream Of the Future
The Price Of the "Goober' Will
Probably Go Up Soon.

Norfolk being the first peanut city in
the world. the ''gocher" situation is al
ways interesting, not only here, but all
over the world, the end Of the universe
known rs the earth being practically
supplied with the delectabla so-called
npt by the Old Dominion, the biggest
part OF the trade going out Of this port
Prescnt conditions aie especially in ter
eshng, as, in the opinion OF prominent
dealers, they mark the inuuGura ton of
little less than crisis in the peanut
trade, and one which will affect the
peanut markets OF the earth.
The Virginia Peanut Association has
long been defunct, and 1t is probable
that IN its old gu!se II will never be re-
suscitated. In the past decade there
nave been some seven combinations OF
the factory men Of the State 70. the pur-
pose OF self protection, mutual interest.
ana the mainta.nance of prices. The
plans with which these organizations
periodically started out were invariabl
beautiful. but were found upon repeated
trial 10 be Impossible of realization for
two great reasons
THE REASON WHY.
Several peanut associations or trusts. y
as the newspapers loved 10 denomina. .e
them, lacked the essential clement: Of
q trust !nasmuch as the individual
concerns were never bound together by
any tie moe substantial than rather
iimsy agreement which seems 10 h I'VE
been ea;tly obrogatcd. There was never
any combination OF capital III the sense
cf pooling. The manufacturers sim,,!y
agreed not TO sell below certain prices:
Out had 70 buy a: any rate they could
There was no buying up Of firms closing
OF factories that Were not praii:a9Jlc
cornclng the market pooling OF capt.
tai. watering OF stocks, nor any other
OF the intrinsic qualifications necessary
10 the existence of a successful trust
u ho lh
New jersey.
Fua;:ng l. plainly, the formation OF a
Virginia peanut ASSOCIATION was gene
rally an emergency measure. When one
or more big manufacturers had loaded
UP in goohe.s, and there had come a
sudden slump IN the market they nl-
med.ately became active In the forn?a-
ton Of an association TO keep the price
up, and they usually succeeded in q
way.
AN EMERGENCY MEASURE.
The association formed IN February,
1876, was obviously of this character
ioE emergency pure and simple--and the
members were bound by the agreement
only until September. when everybody
started out on his own hook again.
The secret OF lis origin Is an open one
among peanut men now, II 1t wasn't
before. One manufacturer had an I'M
mense stock on hand and the market
went suddenly below the buying price.
The way that manufacturer hustled to
get up an association is a matter OF
history lie succeeded. The result was
the organization OF Feb. 1896. With
IN an hou. after its formation became
known the price Of the nut took a big
Jump. The man who had overloaded
saved $4,000 by his generalship
Last year, it viii be Remembered the
price OF the nut was forced up 10 5
cents in less than fortnight That
l.. the quoted price was. / is not gene
rally known, however. TO the dear pub
nc, mat when peanuts Were quoted AZ
cents by the association they were
being sold at Az cents in Northern
markets from cent. lots shipped by
members of the association, and /; Is
now 4 known fact that the so-called
trust was not even able to sell al
It's own prices in all cases.
\ DREAM OF THE FUTURE.
a. well known cleaner speaking Of
the association, said yesterday tnat in
the many years he had been in The bust
ness, when he went it alone. he invaT!a-
'b!E made money. He los; when he enter
ed an association with c.ocli!ke and in
Struct!ve regularity. There was only one
KIND or an association he would join un-
der any circumstances now. Ii would
'bc bona hde trust. which should be
capitalized 1T S500.G00 or 81 ,GO00 900. and
IL
management for the financial benefit of
the mcmber:--a trust which should buy
up all the cleaning establishments,
close those which were unnecessary or
Improbable. and operate the Others
from a central mana cement; n trust
which would necessarily compel the
sinking OF individual effort in one COM
b.ned. mutual cooperative system.
which should be able TO manipulate the
market practically 10 suit itself He
admitted that this was just about the
finest field in Tie world for the organiza-
tion OF such an institution; said it could
be practically, advantaseously and read
lily operated, and :ntmated. indeed, that
the peanut market would be 4 much
easier thing TO control than the sugar
or oil market. He declared that such a
trust would blossom as the rose. and
meant fortunes TO II: promoters At the
same time he was under the impression
that the dream was far from fulfill
ment. possibly because peanut men,
i.55sts AZ stftsa5 t2 555t s4sy