The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-06-15
Former Trust" secre-
tary Can Tell Commit
tee But Little.
CLAIMS HE WAS
MADE SCAPEGOAT
Says Government Had to Have
Some One on Which to Fasten
Alleged Sugar Gust ms
Frauds, and Picked Him
Out as Mischief
Maker"

Washington. June l4.-Fiye hours
were spent to-day BY Charles r. Heike,
for several years preceding last July
the $4,000 secretary OF the American
Sugar Refining Company. in telling
the House sugar investigating commit
tee that he knew nothing bout the
policies or inner history of the com
pany, particularly in the yearc when
H. Q. Havemeyer 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 Pres
dent Havemeyer. saying that he was
not big enough a man for that. He
declared that the government had
picked him out as the mischief
maker" in the alleged customs frauds
charged to the American Sugar Re
Inning Company. simply because IL had
70 have some one to fasten them on
The matters the committee tried TO
find out about, but concerning which
Mr.. Heike claimed to know but little,
were many 8iI
One of the things was the interest
of the American Sugar Refining Com
pany in the National Sugar Refining
Company. He said the former owned
100000 preferred stock In the latter.
or little over one half. but he had
no idea OF why just little over one
half was purchased. Neither did lie
know whether the American Sugar Re
timing Company was cognlzant OF The
claim. now under litigation, that s1o.-
100000 common stock in the National
was In existence at the time 1t pur-
chased the preferred stock.
Get Little Inner History.
( Little of the inner history of the
pap SN1 I-a n In .
deal was obtained from the witness.
He admitted that the American Sugar
Refining Company loaned to Adolp.,
SeSal. through, Gustave A. Kisscl. I
whom Mr. Heike spoke as Segals
agent. sI.25o.000. Nnd that a majority.
OF the stock OF the Pennsylvania sugar.
Refining Company. with me voting
power thereof. was given as collateral
security. s
Heike could not remember that the
stock was voted SO that the Pcnnsyl-
vania rehnery was abandoned imme-
diatelv, por could he remember how
the deal was closed.
The American Sugar Refining Com
pany did not make 1t a business TO
Garrett. of Tennessee.
They loaned plenty of money: yes,
sir" said MIR. Heike.
HAS the American Sugar Rehning
COMPANY recently loaned any money!
yes. To some trust companies
Don't you know that as a matter
OF fact, that the very day that this
the American Sugar Refining Company.
with the voting power. that an ar
rangement was brought bout whereby
the Pennsylvania Company
II don't know anything about that
at ell," Mr.. Heike interrupted. II know
one ng, they made the loan
DO YOU know anything about the
suit that was filed growing out OF the
.transaction?" persisted Mr. Carr.
II cannot explain positively"
James NJ. Beck, counsel for the
American Sugar Refining Company.
told the committee that the debt was
settled as Il result of the suit
How Debt Was Paid.
I'VE loaned s1,26o.ooo and in the end
we got payment of the loan by return
ing our collateral and paying $780,
900. That Is a new way of receiving
payment of a debt" He explained
the 100000 was equivalent to a pen
atty under the Sherman antitrust law
Mr.. Heike was unable to explain
why President IIavemeyer had such
control over the American If he only
held in his own name comparatively
few shares. Again. Mr.. Beck inter-
rupted to suggest that possibly moro
shares were held in the name of brok
ers. as was sometimes done In New
York.
THE stockholders were apparently
satisfied 10 re- elect the directors from
year to yct..'' said Mr.. Heike. In ex-
PLANTATION of Mr. Hnvemeyer's power.
did re secure the proxies of stock
holders 2" inquired MIR. Garrett.
The witness responded that he aid.
and When asked the manner in which
the proxies were collected, said:
Il sent notices out every time to
each stockholder. ] would say, The
term expires OF three directors. II you
please, be present TO vote. If you
have no time to come, we will vote for
you. and unless otherwise directed we
willvot for the three whose Office ex-
pires.,.''
And they always wrote you to go
ahead and do that?'
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