The daily banner. (Cambridge, Md.) 1897-2008, 1910-05-27
TRUST RED-|NKED
SUGAR FRAUDS
Were Differences Of True and
False Weights.
SHOWS HEIkE knew ALL
According to the Testimony the Ma
nipuiation Of the Books Took Place
In His Office.

In His Office.
New York, May 27.-The trial of
the sugar frauds led right into the
executive Offices of the sugar trust at
lit Wall street at the trial OF Charles
R. Heike, the secretary OF the com
pany, and the other defendants before
Judge Martin In the United States cir
cult court.
In all of the previous cases arising
out of the fraud and in the present
trial up until now. the evidence col
iected by Prosecutor Stimson and his
assistants has had to do largely with
what went on where the sugar was
weighed and in the offices of the re-
fners. Today it dealt exclusively with
what went on in Wall street, where
the figures were put t>ether- Mr.
iHeike was the defendant Ce.inst whom
this evidence was aimed.
When the sugar frauds were eX-
posed the books of the company in
Wall street did not balance by many
Thousands of pounds on the basis OF
the false weights procured through the
manipulation of the scales. With these
weights as a basis. and statements
now put in show this: more refined
sugar was being turned out OF the
refineries than the amount OF raw SUI
gar that went into them, and in the
refining of sugar there is generally
loss. But the books were made to bal
ance in the company's Offices by in
sorting there amounts that practically
represented the difference between the
true wights and tn false. The false
weights were made up first and ap-
peared in black ink. Then the differ
ences at the end of each month, care
fully collected in the meantime, were
inserted in red ink. Then the state
ment, with the black figures and the
red figures, was turned over to Mr..
Heike. It was all done, according 10
the testimony, in his Office.
Mr.. Heike, it appeared from his own
letters, attended to the figures and the
bookkeeping details. Mr.. Havemeyer,
the president of the sugar trust-now
dead-was only interested, Mr.. Heike
wrote his superintendents, in results.
Much OF the evidence adduced was
brought in apparently with view OF
settling the contention frequently
made in behalf of Mr.. Heike and those
connected with the executive offices
of the company, that he did not follow
such details of the business.
In order to show that the accounts
of the company in the general clear
ing house In Wall street did not bal
ance until figures representing the
false weights were inserted, the gov
eminent put on the stand an expert,
Harvey H. Waters, who mad recon
structed the so-called technical state
ments, the originals having disap-
: peared from the books which the gov
eminent had been able to get hold of.
It was shown that in making up these
technical statements, showing the
sugar received and the sugar refined,
the false government weights had been
used in the case of all sugar from
Java The company bought that sugar.
not on invoice at point of shipment,
but on its landed weight The sugar
from Cuba was bought on invoice
weight, the weight taken In Cuba, and
in such cases this invoice weight was
used in the technical statement. But
the technical statements using the
false weights for Java sugars had to
be fixed up later by the insertion OF
the difference between the false
weight and the true weight which the
cnmnanY maid for