New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-01-05
SUGAR MEN ELECTRIFIED.
STOCKHOLDERS OF A NEW REFINING CON-
PANY GROSSLY DECEIVED.


"A MILLION DOLLARS SAID TO HAVE
BEEN SUNK IN THE sCHEME-ENG-
LrsH FIRMS WILL SUFFER
MOST 81 Fps IN.THE DIS
COvEkY OF THE
FRAUD
The stories about a secret process for refining
raw sugar by means of electricity, which sue
ceeded in exciting much interest, establishing
company with a capital stock of $1,000, 900,
and attracting many shareholders TO it
on both sides of the Atlantic, but especially in
England, were yesterday relegated to the airy and
impracticable realms which boast an equally amaz-
ing scheme for extracting sunbeams from cucum-
bers Early on Tuesday persons interested in
the Electric Sugar Refining Company were first
disturbed by dispatch from London which stated
that the stock of the company had dropped from
ESQ TO f12 This was recorded in The Tribune
Yesterday along with the facts that it had caused
considerable excitement in the lower part OF Wall
ST., and that the cause Of the precipitous tumble
could not be learned. Messrs Willett and Ham,
lin, who publish The Weekly Statistical Sugar
Register said in their circular yesterday morning
The Development of the electric process has
come much earlier In 1889 than anticipated, and In
a way quite tho opposite of our anticpations In
what We have previously published we have confined
ourselves TO Just what and heard, but In the
matter of confidence In the results we must say
that We have been grossly deceived From devel-
opments now coming to light 1t appears evident that
a fraud has been perpetrated, the extent of which
will, no doubt, soon be made known
THIS confirmed the suspicious already cherished
by business men, and realized the foreboding ex-
pectations of the shareholders, many of whom
hurried to No. 60 Wallst., where the office
Of the ,ompany is, to see w. III. Cotterill, it's
president or J. A. Robertson, its treasurer, and
ask an explanation. BY afternoon the principal
facts were made known to them and to the
public They may be summed up in sentence
as concise and comprehensive as the often quoted
cha ptcr on Snakes in Iceland. There is no cleo
trio surar-refining process. The founders and
prom oters Of the company, it appears, have been
the dupes of a party of rascally Westerners,
whose Headquarters are at Milan, in Michigan.
Mr. Wllett yesterday said that he believed the
consprators were already in prison, Mr.. Cotterill
having gone to Milan the mission of having
them arrested.
POSSESSING AN IMPORTANT "sECRET."
Some four years ago an elderly German named
Henry c. Freund whose knowledge of chemistry
and electricity gained for him the title of
Professor cane to New-York from the West
with his wife He presently began to promulgate
rumors in business circles that he was the
possessor Of an important secret of his own dis
coyery, which would revolutionize sugar-refning
all over the world. When he thought the time
was ripe he approached the Havemeyers, and
tried to induce them to take up his method
lie refused to tell them what it was, only stat
ing that electricity was the refining agent he
used. Theodore A. Havemeyer told Tribune
reporter that be remembered the man well. He
seemed to be about ffty-fve years of age, and
Judging him by his manner, MIR. Havemeyer set
him down as one Of the many cranks7
to whose visits he was well accustomed,
and dismissed him with no encouragement.
II told him. said Mr.. Havemeyer, that we
never bought a pig in bag, and that we must
examine his method before considering whether
we would adopt it. lie positively refused to
explain il to give me an opportunity OF seeing
ii, and 1 sent him away. month or two later
committee, representing the Frcund Electrlcai
Process, waited on me, but as they also would
not or could not promise to let me into the secret,
| refused to have anything t. do with it,
SUGAR MATERIALIzING sEANcES.
The memories of many other men Interested
in sugar roining, in any new business de
velopmcnts that Promie fruitful results are
now rcverting to a series of exhibitions given
by Professor Freund about three years ago, or
in due sequel to the visits to Mr. Havemeyer.
1 hey were curious interesting and puzzlng AFFAIRS.
They were conducted various houses IN whlch
tbe Professor and bis wife lived in New-York,
they never remained bng In one house, and they
partoolx largely of the nature of spritualistic
seances or performances by Hermann. treund
was won't to invite tn, attention of his onloo<ers
old pxyh Cto
cloth. a something which he described as the
electric refining machine They might look, but
,hev mustn't touch They could that the veiled
mystery was toy-iilxe in size. They were allowed
10 thump the hooi III order to SATISFY them-
selves that there were 10 tiap-doorS; and TO look
around the room lest perchance there III SuI pe
refining mill in conc@lment.
Then Professor Freund would point to his
other property" barrel Of raw sugar lie
yould Sien exclude his visitors permitting them
however. first to set watchers BY the house TO pre-
vent any cousion from without, and would shut
himself into the openting-room with his WIFE
he expelled tE Were Kept waiting G Or
There they would find an empty barrel, sample
of beautifully granulated refined sugar, and self
satisfied " Professor"
Rut- with all his efforts to achieve remunerative
notorcty from his invention, it not until about
a year ago that the Electric Sugar Refining Com
pany was formed. w. II. Cotteril, who was
elected president is SAID 70 nave ave 9een soneioOr
the treasurer, was formerly connected with the
ship-building business in Scotland The company
secured the office at No. 80 Wal-st., and issued
10000 shares of stock Of a par value Of SloG o
share II bought the building at the India Docks,
near Hamilton Ferry, Brooklyn, formerly occupied
by F. f. Smith x Co. as the Atlantic Flour
Mills, and installed Freund and his following
therein, with instructions to improve the place
erect their machinery, and go ahead. But in
spite of taking this step, and OF beginning to 90
what they could to boom I'd the stock ,haS the
darkness Of Egypt was not more intense than
that which separated the officers of the com
pany from the knowledge of the mysterious
process which they were pioneering
vAINLY WAITING FOR THE ELECTRIC THRILL
Numerous demonstrations were made at the
factory in Brooklyn but no inquirer who attended
them was permitted to enter the two secret
rooms where they were conducted They had
to stand outside, and listen to thumpetty-
bump-bang noise within, which suggested to
their gine ears that the raw sugar was respond
ing to the magic thrill Of electricity, and becom-
ing seven times refined in the twinkling OF an
eye In further proof, they were allowed to