Bridgeton pioneer., 1910-06-02
TRUST RED-IkKtD
SUGAR FRAUDS
Were Differences Of True cd
False Weights.
SHOWS HEIKE KNEW IL!

According to the Testimony the Ma
nipuIation Of the Books Took F!ace
In His Office.
New York, May 27.-The triai o.
the sugar frauds led right into the
executive Offices OF the sugar trust at
III 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
lected 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-
finers. Today it dealt exclusively with
what went on in Wall street, where
the figures were put together. Mr..
Heike was the defendant against 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 basis, and statements
now put in show this: more refined
sugar was being turned out of the
refneries than the amount of raw su-
gar that went into them, and in the
refining of sugar there is generally a
loss. But the books were made to bal
ance in the companys Offices by in
serting 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. 1t was all done, according to
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 superintendent 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
ernment 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
ernment had been able to get hold of
1t was shown that in making up these
technical statements, showing the
sugar received and the sugar refined
the false government weights had beer
used in the case of all sugar from
Java. The company bought that sugar
not on invoice at point of shipment
but on it's 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 tc
be fixed up later by the insertion ci
the difference between the false
weight and the true weight which the
company paid for.