Omaha daily bee., 1911-07-22
Promoter Parsons Asserts Wrongs
Will Right Themselves Without
Any Curb on Corporations.
SAYS LET wATEREp STOCK ALoNE
Government Should Not Interfere in
Private Affairs.
FOR UNLIMITED CAPITALIZATION
Theory Supported By Economic
Writers, is Claim.
HEIKE SAYS DOES NOT KNOW
Declares Ignorance of Mysterious
Resolution Passed by Board of
Directors I'm Relation 60
HurtfuI Legislation.


NEW YORK, July 21.-"An such wrongs
right Themselves" was the assurance John
E. Parsons gave the sugar trust investi-
gators today when they asked him how
TO curb the big corporations. When the
former attorney Of the American Sugar
Refining company took the stand again
Representative Asher c. Hinds inquired:
As probably the worlds most eminent
expert on these matters what would you
suggest that a sovereign government can
do to prevent these great combinations OF
capital from the extravsgances they have
exhibited in the past?'
My theory is and it is supported by the
greatest economic writer's, that all such
wrongs right themselves" replied Mr..
Parsons. IF there Is too much water in
the stock that viii take care of itself. The
government cannot in equity interfere in
private affair.". There should be no limit
to capitalization so long as It IL not In
furious fraudulent"
II certainly claim to be the pioneer in
the formation OF the American trust" said
Mr.. Parsons. in answer TO another ques-
ton. 81 am very proud OF it."
At the start OF the congressional investi-
cation today Charles r. Heike. former sec
retary of the American Sugar Refining
company, declared his ignorance Of the
mysterious resolution passed by the board
Of directors. in which II. o. Havemeyer
said the company should take action rela-
tive to Injurious litigation and hurtful leg
islation and appeals from each OF the po-
ntical parties"
Heike said that the late John E.
searles was the secretary and did not turn
over to him records of the action taken
on that resolution.
Mr.. Parsons opposed the law which per
mits the government to examine the books.
question the officers and obtain the secrets
OF a corporation.
Mr.. Parsons repudiated the many state
ments which have been made that II. o.
Havemeyer was the one power In the
Sugar trust and that the board Of direc-
tors always did as he bade.
Sugar Company Not a Trust.
Mr. Parsons insisted that the American
Suger Refining company is not a trust
similar to the Standard OIL or Tobacco
companies.
Mr.. Madison read into the record that
after the American had absorbed the Phiia-
delphia refineries there were three inde-
pendent refineries in New York.
Who organized those three refineries
into the National Refining company"
Mr.. Hayemeyer planned IT, ! believe"
And he was then president Of the Ameri-
ean?'
Yes"
Were not these three companies to ex-
change all OF their corporate stock for the
preferred stock Of the National. there be-
ing 100000 of preferred and 100000 OF
common
Mr.. Parsons hesitated.
And did not the American later acquire
that preferred stock or a majority OF it7'
Il believe so"
National Common stock.
THE American did not acquire any OF
the Nationals s10.ooO,OoO Of common stockT'
No"
Mr.. Havemeyer acquired possession OF
that Sl0OOO.0oo OF common stock. Do you
know what he paid for that or how he
acquired it?''
Il do not know"
Mr. Madison explained that the com
plainants in the New Jersey suits to in
validate the stock allege that the company
did not receive one cent in return for this
$40 Ooo. 600 Of common stock.
You were to get some OF this common
stockr'
Yes, Mr.. Havemeyer promised TO give
me 1000 shares Of the common stock of a
par value Of 500 900 for my legal services
/ in the transaction. But when II came time
70 deliver the stock said that preferred
the preferred stock, ana ne gave me l,O0o
/ shares OF that for my services"
did you shun the common because Of its
aqueous natureT''
i