 Later in 1959 he began his managing career at the Class B level and reached Class AAA in 1967 as skipper of the Pirates' top farm club, the Columbus Jets of the International League.From 1968 through 1976, he directed Pittsburgh's highly productive farm system and, when longtime general manager Joe L. Brown retired following the 1976 campaign, Peterson succeeded him, splitting duties with longtime executive Joe O'Toole, who handled business matters.One of his first (and most noted) moves was the 1976 trade of catcher Manny Sanguillén and cash to the Oakland A's for manager Chuck Tanner.