Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1911-06-15
SUGAR TRUST SECRETARY
Though he Received $4,000
a Year He Appears to
Have Known Nothing of
the Affairs of the Ameri-
can Refining Company.

Washington, d. c., June 14.-Five
hours were spent today by. Charles
r. Heike, for several years the $40
600 secretary of the American Sugar
Refining company. in telling the
house sugar investigating committee
that he knew nothing about the poll
cies or inner history of the company,
particularly in the years II. O. Have
meyer was its president.
The witness described his position
with the company as that Of a stock
transfer man, bookkeeper and letter
writer He ridiculed the idea that
he was the confidential agent OF
President Havemeyer saying that he
was not a big enough man for that
He declared that the government had
picked him out as mischief maker"
in the alleged customs frauds charg-
ed to the American Sugar Refining
company simply because il had to
have some one to fasten them on.
Il am not a sugar man. asserted he.
L was merely a transfer man"
The position Of stock transfer man"
is a responsible one. however. he
gave the committee to understand
FaF-nstance, he declared, he had
signed enought transfer certificates
10 stretch 500 miles if the certificates
were pinned together. The matters
the committee tried to find out about
but concerning which Heike claimed
that he knew but little, were many
One was the interest of the Ameri-
can Sugar Refining company In the
National Sugar Refining company.
He said the former owned 100000
preferred stock in the latter. or a
little more than one half but he had
no idea why just a little more than
one half was purchased. Neither did
he know whether the American com
pany was cognizant Of the claim. now
under litigation. that S10.000.0C0 Of
the common stock in the National
was in existence at the time il was
purchased as preferred stock. Little
of the inner history Of the Pennsyl-
vania Sugar Refining company deal
was obtained from the witness. He
Refining company hal loaned 10
Adolph Segal, through Gustave y.
Kissel. of whom Heike spoke as Sc
gals agent. s1.25O,OO0. and that a
majority Of the stock Of the Pennsyl-
vania Sugar Refining company, with
voting power thereof was given as
collateral security.
Heike could not remembe~ whether
the stock was voted, whether the
PENNSYLVANIA refinery was abandoned
Immediately nor could he remember
how the deal was closed
Did the Amer ;an S',EIr Refining
company maxi st business t. Loan
money" inquired Representative Gar
ret of Tenrrss'e.
They lOano1 plenty "f ar'uoy; yes,
sir" said Heike
Has .he A.aerican Sugar Refining
company recently loaned any money!
Yes. to some trust companies
Don't you know that as matter
of fact the very day this stock
was turned over as collateral
to the American Sugar Refining COM
pany with voting power, an arrange
Pennsylvania company
Il don't know anything about that
at all" Heike interrupted. Il know
one thing-they made loan"
DO YOU know anything about a
suit filed growing out of the trans
action?" persisted Garrett.
Il cannot explain positively"
James NJ Beck, former counsel for
the American Sugar Refining com
many. told the committee that the
debt was settled as a result Of the
suit 1--WE loaned S1,25O,OOO and in
the end we got payment of the loan
bv returning the collateral and pay
ing $3.50 .O0O," he declared. 1T costs
MS 81 .0OO. 900. That is a new way oi
receiving payment Of debt"
Heike was unable to explain why
President Havemeyer had such con-
troll over the American, if he only
held in his own name comparatively
a few shares. Again Beck interrupted
to suggest that probably more shares
were held in the name of brokers as
is sometimes done in New York.
The stockholders were apparently
satisfied TO re-elect the directors from
year to year" said Heike. i'm oxplana-
ton of Havemeyer's power
Then. forgetting. seemingly. the re
serve which characterized his testi-
mony, Heike launched forth into
defense of the corporation. The oc-
casion of this divergence was re
mark that there were 10000 stock