New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-15
HE|KE REMEMBERS LITTLE
But Says Sugar Refining Com
pany Was 0ne-Man Concern.
Mr.. HAVEMEYER RAN II
Committee Spends a Whole Day
in Finding Out What the Wit
ness Does Not Know.
From The Tribune Bureau

From The Tribune Bureau
Washington. June 14.-Members OF the
House committee investigating the
American Sugar Refining Company were
somewhat peevish when adjournment
time came this afternoon, for they had
epent almost an entire day in developing
what Charles r. Heike, former secretary
Of the company. did not know about the
inside affairs Of the Havemeyer organi-
cation.
Mr. Heike described his position in the
company as that of stock transfer
man. bookkeeper and letter writer He
rdicued the idea that he v-s the con-
fdcntial agent of President havemeyer'
saving that he was not big enough
man for that. He declared that the gov
eminent had picked him out as the mis-
chief maker" in the customs frauds
charged TO the American Sugar Refining
COMPANY simply because It had TO have
some one 10 fasten them on.
One OF the things the committee tried
~ find out was the interest Of the Amer
lean Sugar Refining Company in the Ma
tiora Sugar Refining Company. Heike
said the former owned 100000 pre-
ferred stock in the latter. or little over
half. hut he had no idea Of why just
a little over one-half was purchased
Neither did he know whether the Ameri-
cen Sugar Refining Company was cog
INFANT Of the claim now -tndcr litigation
that S1O.oOO,OOO common stock in the
National was in existence AT the time 1t
purchased the preferred stock.
Little Of the inner history OF the Penn
svlvania Sugar Refining Company deal
was obtained from the witness He ad-
nnitted that the American Sugar Refining
Company lent to Adolph Segal, through
Gustave A. Kissel, of whom Mr.. Heike
spoke as seears agent, Sl,250."oo, and
that a majority Of the stock of the
PENNSYLVANIA Sugar Refining Company
with the voting power was given as col
lateral security
He could not remember that the stock
was voted so that the Pennsylvania re-
hnerv was abandoned Immediately, nor
could he remember how the deal was
closed.
THE American Sugar Refining Com
many did not make it a business to loan
money" asked Representative Garrett.
They loaned plenty Of money; yes,
sir" said Mr. Heike.
Has the American Sugar Refining
Company recently loaned any money
Yes. TO some trust companies
"Don't YOU know that as a matter of
fact the very day that this stock was
turned over as collateral to the Amerl-
can Sugar Refining Company. with the
voting power, an arrangement was
brought about whereby the Pennsyl-
vanla COMPANY
81 don't know anything about that at
all" Mr.. Heike interrupted. 4 kno"
one thing. they made the loan
DO YOU know anything about the suit
that was filed growing out Of the trans
ection?" persisted Mr.. Garrett
81 cannot explain positively.
Lost s2,coo,ooo on Pennsylvania Deal.
lanes NJ. Beck. counsel for the Ameri-
can Sugar Refining Company, told the
committee that the debt was settled as
q result Of the suit. we loaned Sl,2Jo,
600. and in the end we got payment OF
The loan by returning our collateral and
paving $4,000" he declared. 1T cost
us s.. OOO,OOo. That is new way OF re-
ceiving payment of debt
He explained the $4,000 was equiv
alent to a penalty under the Sherman
antitrust law.
Mr.. Heike was unable to explain why
President Havemeyer had such control
over the American If he held in his own
name only comparatively few shares
Again Mr.. Beck interrupted to suggest
that possibly more shares were held II
the names of brokers. as was sometimes
done IN New York.
THE stockholders were apparently
satisfied 10 re-eect the directors from
wear to year." said Mr.. Heike, in ex'
PLANTATION of Mr.. Havemeyer's power.
Did he secure the proxies of stock
holders?" asked Mr.. Garrett.
The witness replied that he did and
when asked about the manner in which
the proxies were collected said:
ct sent notices out every time TO each
stockholder. I would say: The term
expires Of three directors. II you please
he presert 10 vote. If you have no time