The Washington times., 1911-06-14

7 American would have absolute control
of the National?" was asked.
"Yes-it owns over so per cent of the
preferred stock Of the National"
What was the purpose of organizing
the American in New Jersey?''
THE laws of New York were anti
auated-not so good as those Of States
like New Jersey and West Virginia. :"
replied Mr.. Heike, while a smile pass
ed around the committee table.
In 1923, Heike said, 81, ,250, 900 was
loaned through one, Kissel, to the Penn
sylvania Sugar Refining Company.
Didn't Know It.
II there was an agreement that the
trust should note the stock Of the Penn
sylvania company, Heike said he did
not know it. The fact that the trust
matter of record, and the bad memory
OF Heike on all such points manifestly
agitated the committee.
The Pennsylvania transaction, through
which the trust got control Of a danger
Gus rival, squeezed it out of existence,
closed its plant, and pulled down the
great Real Estate Trust Company Of
Philadelphia, was taken up in detail.
Again, Heike was wonderfully innocent
of all information.
They discussed those things usually
before the formal meetings. he said,
'in an unofficial way, and merely rati-
fed the decision in the formal meetings
which 1 attended. The Pennsylvania
company borrowed the money for
year. l gave 5000 shares Of its stock
as security. 1t did not pay the loan
when due, and the plant never was
operated
"Havemeyer was practically the boss
of the American while he lived; direc-
tors had little to DO with it?'
'Oh, wouldn't say that. He was the
big man in the concern, though"
He organized the trust Of 1887"
Il don't know who did that"
What about acquiring control OF the
Cuban-American Sugar Company?
I'VE never acquired It, We merely
loaned 1t $1,000. 900"
Leaving this inquiry into the maze
of Investments by which the trust got
its hand on competing and related
concerns everywhere, Heike was next
asked about the trust purchase OF
stock in the beet sugar companies.
Il would favor buying control Of
because they are large producers.
and If We should ever get free sugar
in the tariff. that control would be
very important"
helke naO at last reaCneQ SUD-
ject which he admitted he knew
about. He told about the trust buy
ing $4,09S,00 of stock in the Michigan
Sugar Company, little less than half
its present capital, but enough to con-
troll at the time Of the purchase. Re
Gently, however, the trust has sold
part of its holding III that company
Representative Fordney of Michigan
asked how much the trust had invest
ed in beet sugar companies. The figure
- mn NJ
Fordney tried to develop that the whole
about 800, 100000 capital. Il was devel- |
oped that the total is $751; 900, the trust
holding S23, ,0O0, 900 of 1t. There is only
one beet sugar company in which the
trust has a director. This one is in
Colorado.
Heike said the only beet sugar COM
panies actually controlled by the trust
weer the Iowa Sugar Company at Wav- |
erly, Iowa, and the Chasha Sugar Com
pany, in Minnesota.
Mr.. Fordney asked II a reduction of
duty on beet sugar would not injure the !
beet sugar industry. Heike was conf |
dent ii would.
Mr.. rordney wanted to know why |
sugar should cost more to the consumer |
on the Pacific than on the Atlantic |
coast, though the Pacific coast sugar |
Is all free. He couldn't tell. He esti- |
mated the cost of refining sugar at y |
cent per pound. |
''If all duty on sugar were removed,
would it make sugar cheaper?'
Yes, in time-not at once" replied |
the witness.