The Birmingham age-herald., 1911-06-15
|HE|KE |GNORANT OF POLICIES OF
 H. O. HAVEMEYER Big Sugar Magnate's Power Still Remains Deep
 Mystery
WITNESS VERY ABLY
 SHOWS BAD MEMORY
Says He Was Not Big Enough Eel low to Be Confidence Man" to President Havemeyer--The
 Merger Unexplained

washington. June 14--Five hours were spent today by Charles R. Heike, for sev- eral years, preceding last July, the s2o,- 900 secretary of the American Sugar Re- hning company. in telling the House sugar Investigating committee that he knew nothing about the policies or inner history of the company, particularly in the years when H. O. Havemeyer was It's president.
 The witness described his position with the company as that of stock transfer man, bookkeeper and letter writer" He ridiculed the idea that he was the conf dential agent of President Havemeyer, saying he was not big enough man Tor that He declared the government had picked him out as the ''mischief-maker in the alleged customs frauds charged to the American Sugar Refining company, simply because it had to have some one to fasten them on.
 The position of stock transfer man. was a responsible one, however, he gave the committee to understand. For in- stance, he said. he had signed enough transfer certificates to stretch 54 miles if the certificates were pinned together-J
 There were many matters the com nittee tried to find out about, but con- cerning which MT. Heike claimed to know but little
 One of the things was the interest of the American Sugar Refining company in the National Sugar Refining company. He said the former owned s5,0OO.o00 pre- ferred stock in the latters or little more than one-half, but he had no idea of why just little more than one-half was purchased. Neither did he know whether the American Sugar Refining company was cognizant of the claim, now under litigation, that s1o,0o0,0Oo common stock in the National was in existence at the time it purchased the preferred stock.
 Little of the inner history of the Penn- sylvania Sugar Refining company deal was obtained from the witness He ad- initted the American Sugar Refining con- pany loaned to Adolph Seagal, through Gustave A. Kissel, of whom MT. Heike spoke as Seagals agent. s1.250OoO, and that majority of the stock of the Penn- | the voting power thereof. was given al collateral security.
 Poor Memory
 l He could not remember that the stock was voted. as the Pennsylvania refinery was abandoned immediately, nor could | he remember how the deal was closed. The American Sugar Refining com. pany did not make it a business to Ioar moneys?' inquired Representative Gar rett of Tennessee.
 They loaned plenty of money,' said MT. Heike.
 Has the American Sugar Refining com. pany recently loaned any money?"
 Yes, to some trust companies" | Don't you know as a matter of fact l that the very day this stock was turned over as collateral to the American Sugar Refining company with the voting power l an arrangement was brought abou whereby the Pennsylvania company--?
 T don't know anything about that al all,' MT. Heike interrupted. T know one thing, they made the loan."
 Do you know anything about the sui that was filed growing out of the trans l action?" persisted Mir. Garrett
 T cannot explain positively" James NJ Beck, counsel for the Amer lean Sugar Refining company, told the committee that the debt was settled. as result of the suit
 | We loaned $1,250,O00 and in the end we got payment for the loan by return l ing our collateral and paying $750 0O0," he declared. Tt cost us $2.000,000 That is a new way of receiving payment of q debt"
 He explained the s50,00O was eouiva- lent to penalty under the Sherman antitrust law
 Mir. Heike was unable to explain why President Havemeyer had such a control over the American, if he only held in his own name comparatively few shares. Again MT. Beck interrupted to suggest that possibly more shares were held in done in New York.
 The stockholders were apparently sat- isfied to re-eect the directors from year to year. said MT. Heike, in explanation of MT. Havemeyer's power. Did he secure the proxies of stock kolders?" inquired MT. Garrett The witness responded that he did and when asked the manner in which the proxies were collected said:
 'I ssent notices out every time to each stockholder. I would say the term expires of three directors, if you please. he present to vote. If you have no time to come we will vote for you and unless otherwise directed we will vote for the three whose offices ex- pires.'"
 Said Go Ahead
 And they always wrote you to go Q nd do hufo