The daily banner. (Cambridge, Md.) 1897-2008, 1911-06-16
HAVEMEYERRULED
SUGAR TRUST
Aelke Says It Was a One
Man Corporation.
DIRECTORS WERE DUMMIES
Former ecretary, Who Was Indicted
In Fraud Case, Shows Great i9nor-
ance of Details.

Washington, June 15.-Attempts to
discover the secret of the power OF the
late Henry o. Havemeyer, who for
years was the controlling genius ol
the American Sugar Refining company.
failed again when the house sugar
trust" investigating committee cross,
examined Charles r. Helke.
Heike was the supposed confidante
of the sugar king" and was secretary
of the company until his indictment in
connection with the sugar ~dstoms
frauds in New York.
Edwin F. Atkins, acting head of the
corporation, had testified that MIR.
Havemeyer had ruled the concern
with holdings of 100000 OF total OF
$9O,O0O,0OO. Mr.. Heike protested that
he knew nothing of the operations OF
Mr.. Havemeyer.
Representative Garrett questioned
Mr.. Heike closely about the purchase
and closing of the United States Su,
gar Refining company. 1T was poorly
located" said Mr.. Heike.
Yet you were willing to pay $50,
900 cash for it," Eyes, sir
He was unable to throw light CT
the transactions by which the Ameri
can gained control Of the Pennsylva-
mia Sugar Refining company in Phila-
delphia, by lending money to Adolph
Segal, it's president, who gave stock
in the Pennsylvania as collateral Sc
curity The Pennsylvania refinery, he
said, was not operated after it fell into
the hands of the American through
Segal being squeezed out of control in
this Zeal.
Explaining that little discussion of
business ever took place at the meet
ings of the board of directors of the
corporation, Mr.. Heike pleaded his in
ability to tell the con.Sittee much
about the big transactions of the COM
pany during the years he was with
the company
Havemeyer ran the business, the
witness said He denied that he had
such confidential relations with the
sugar president as to be able to tes-
tify now about the business of former
days.
GAS fact" inquired Representative
Garrett, of Tennessee, were you not
from the time of the organization of
the company down to Mr.. Havemev-
er's death his confidential assistant"
INC, SIR" said Mr.. Heike emphatically.
Mr. Heike said he owned fifty shares
in the American Sugar Refining COM
pany.
He was asked to give history OF
the organization of the company, but
professed his inability to tell why the
merger was entered into, although he
was secretary of one of the com panies
that went into the combination. Look
ing at it from the past, he said, he
Judged the merger was to reduce the
cost of production.
After futile attempts to bring out
the inside history of the purchase and
organization by the American of the
various companies, Mr.. Garrett asked
whether there was any one who could
tell of the deal THAT l do not know"
replied Mr.. Heike, smiling.
Representative Madison expressed
interest in the statement that there
was not much discussion of business
at directors meetings. He asked
whether there were not other strong
men on the board besides Mr.. Have
meyer, such as John E. Parsons. Mr.
Heike said Mr. Parsons was lawyer
and knew little about refining sugar.
"But hasn't the American made its
money out of manipulation of stock
and organization of corporations rath-
or than out of refining sugar. inquir-
ed Mr. Madison.
Mr.. Heike was not willing to agree
to that, nor to acknowledge that stock
had been watered by the American
officials Repeated requests for the
witness to estimate the value of the
company's property so as to show
whether it was over-capitalized were
not complied with.