HEARINGS HELD BEFORE THE SPECIAL COMMITTEE ON THE INVESTIGATION OF THE AMERICAN SUGAR REFINING CO. AND OTHERS ON JULY 21, 22, 24, 25, 31, AND HOUSE OF REPRESENTATIVES IN THREE VOLUMES VOL. 3 WASHINGTON GOVERNMENT PRINTING OFFICE 1911 AMERICAN SUGAR REFINING CO. AND OTHERS. SPECIAL COMMITTEE ON THE INVESTIGATION New York, July 21, 1911. The committee this day met, Hon. Thomas W. Hardwick (chairman) presiding. The CHAIRMAN. Mr. Parsons, before you resume your evidence, there is a formal matter about which we want to ask Mr. Heike. It will probably take about five minutes, after which we will hear you further. Mr. Heike, please take the stand now. TESTIMONY OF MR. CHARLES HEIKE. (The witness was duly sworn by the chairman.) The CHAIRMAN. You have been sworn before during this investigation? Mr. HEIKE. Yes, sir; I have been. The CHAIRMAN. At what time did you become secretary of the American Sugar Refining Co.? Mr. HEIKE. In January, 1899. The CHAIRMAN. And you remained secretary until you were succeeded by Mr. Joseph E. Freeman? Mr. HEIKE. Yes. The CHAIRMAN. And during that time were you in charge of the records, minutes, resolutions, and other documents of that character of the company? Mr. HEIKE. I was. The CHAIRMAN. Well, let me invite your attention to a certain extract from the minutes, so as to see what you have to say about it. I notice this extract from the minutes of the American Sugar Refining Co. on September 6, 1892. Of course, that was before you were secretary? Mr. HEIKE. Yes. The CHAIRMAN. And John E. Searles was secretary of the company at that time, was he? Mr. HEIKE. Yes. The CHAIRMAN. He is now dead? Mr. HEIKE. He died; yes. The CHAIRMAN. When you succeeded him as secretary, he is at least supposed to have turned over to you the records, minutes, and resolutions, and such things as that, of the company? Mr. HEIKE. Yes, sir. The CHAIRMAN. In 1892 what connection did you have with the company? Were you assistant secretary, or anything like that? Mr. HEIKE. My chief business was the transfer of stock. The CHAIRMAN. In that capacity yould you have had to do with the resolutions passed by the board of directors? Mr. HEIKE. No. The CHAIRMAN. Let me invite your attention to this statement from the records of the date I have just given you, September 6, 1892: The president having referred to the necessity of protecting the company and its interests from injurious litigation and other hurtful actions, and to appeals by each of the political parties for campaign expenses, it was resolved. Now, this is in brackets: [Vide resolution as authenticated by the secretary.] Translating the Latin, it means: See the resolution as authenticated by the secretary. Did you ever see that resolution? Mr. HEIKE. No. The CHAIRMAN. When Mr. Searles turned over to you the records and minutes of the company-that is, so far as they related to its board of directors, its executive board, and so forth-was this paper among them? Mr. HEIKE. I do not remember it at all; no. He did not turn over things in a formal manner. The CHAIRMAN. When you took over these records was that resolution among them? Mr. HEIKE. NO; I never saw that record. I did not read the books back seven years. The CHAIRMAN. I mean the resolution-this paper containing the resolution. Mr. HEIKE. No, sir; I never saw it at all. The CHAIRMAN. You are satisfied that during the time of your custody of the records there was no such paper among them? Mr. HEIKE. No; I am quite sure of that. The CHAIRMAN. And you do not know what became of the resolution? Mr. HEIKE. No. The CHAIRMAN. When did Searles die? Mr. HEIKE. Three or four years ago. He left the company in 1898. The CHAIRMAN. He died since 1898? Mr. HEIKE. Yes. The CHAIRMAN. He died before you were made secretary? Mr. HEIKE. No; long after. The CHAIRMAN. Long after you were made secretary? Mr. HEIKE. Yes. The CHAIRMAN. You know nothing whatever of this authenticated resolution referred to? Mr. HEIKE. No, sir. The CHAIRMAN. And this is the first time that you have ever heard of it? Mr. HEIKE. Precisely. The CHAIRMAN. When I read it to you that was the first time you heard of it? Mr. HEIKE. Yes, sir. I never looked back and read the book over. The CHAIRMAN. A resolution of that character would have been in your possession, if among the records of the company, would it not? Mr. HEIKE. Possibly. But I did not see it. The CHAIRMAN. You did not see it? Mr. HEIKE. No, sir. The CHAIRMAN. And did you turn over to Mr. Freeman, when he succeeded you as secretary of the company, all records of that character? Mr. HEIKE. There was no such resolution among the papers that I turned over. The CHAIRMAN. You did not take that resolution out yourself? Mr. HEIKE. No; I never saw it. The CHAIRMAN. You did not take it out of the records of the company yourself? Mr. HEIKE. No. The CHAIRMAN. And you know nothing yourself about it? Mr. HEIKE. No; I know nothing about it at all; that is correct. Mr. RAKER. There was some information that we asked you about, Mr. Heike, and which you were to furnish us, I think. Have you those memorandums ready? Mr. HEIKE. I do not remember, sir, that you asked me to furnish anything. The CHAIRMAN. What was it? Mr. RAKER. We asked all of those men to furnish some statements. The CHAIRMAN. I do not think he was one of the men. You do not remember any request being made of you to supply something additional for the record, do you? Mr. HEIKE. No. The CHAIRMAN. You are pretty sure about that? Mr. HEIKE. Yes. The CHAIRMAN. There was no request made of you to prepare something for the record and supply it later? Mr. HEIKE. No. TESTIMONY OF MR. JOHN E. PARSONS—Continued. The CHAIRMAN. I believe Judge Malby had finished his examination yesterday? Mr. MALBY. Yes. The CHAIRMAN. Mr. Hinds says he has one or two questions which he would like to submit to Mr. Parsons, and he may now proceed. Mr. HINDS. Mr. Parsons, was that trust deed which you drew in 1887-I believe that was the date of it Mr. PARSONS. That is the date of the trust deed; but the trust deed was the outcome of what was going on for years before that time. Mr. HINDS. In other words, that was not the first deed of that kind drawn? Mr. PARSONS. It was the first consummated deed of that kind. Anything preceding that was in the nature of a draft; but it put in writing what had been the subject of consideration all around, and I can not remember for exactly how long. Mr. HINDS. Had any other trust been formed in this country at that time? |