Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1889-01-09
FRAUD WINS A FORTUNE
The Electric Sugar Refinery Robbed
of a Million Dollars.
MONSTER sWINDLE IN NEW YORK.
A Clever Scheme to Fleece stockholders
by /. Bogus Refining Process Sue
cessful1y Carried Out-The
Public Loses Vast
Sum of Money.

New York, Jan. 4.-The Evening Sun
tonight prints what it calls IAN almost
Incredible tale of gigantic fraud 1t
states that the Electric Sugar Refining
Company has been duped to the extent
of over q million dollars, and that its
whole "secret process" turns out to be
hunbug of the most barefaced kind.
The "secret process was the inven-
ton OF one Henry c. Friend, who ap-
peared in the trade about four years
ago with samples of wonderfully pure
sugar, which he said had been refined
by his electric process" About year
ago he induced number of English
and American capitalists to organize a
company and buy the 'ssecret process
from him. This was done, factories
were erected, but no one was allowed
inside of them save Friend, his
wife and a few workmen. The
rooms where the refining was
supposed to be going on were always
kept securely locked, as Friend said his
process was not patentable and he could
not afford TO allow anyone to share his
secret. In the meantime the stock of
tuS COupdUy HdU UcGu UOuuCluS up I'LL
til it was worth nearly $500 per share of
gan to unload, when suddenly he
died. The officers of the company sus-
pected nothing wrong until lew days
ago. when it was found that Mrs. Friend
and all who had been connected with
the factory had disappeared, Mrs.
Friend leaving word that she had gone
to the West.
President CottrilI, Treasurer Robert
son and number of stockholders pro-
ceeded to the factory and invaded the
secret rooms. What they discovered
made their eyes bulge out, and each
and every hair on their heads
poreupine when he is fretful.
There were number of machines
used in breaking cube sugar into
smaller particles and in granulating the
coarser grades, and nothing else. There
was no mysterious electrical apparatus
by which the sweet stuff should be
transformed as by a flashing into the
purest saccharine crystals, no Won
derful cylinders, pots or pans
charged with purifying electrical
current. There were crushers and
that was all.
An investigation at once set on foot
showed how the great scheme had been
worked. Not pound of raw sugar had
been refined in the factory. Quantities
Of refined sugar, chiefly cubes, had been
purchased by the operators and pre-
pared IN some secret spot with a chemi-
lcal liquid whice eliminated the ordinary
impurities found in all sugars This
''doctored' sugar was then carted to
the factory in bags purporting to con-
tain raw sugar. The chemical used had
crystalized the cubes to large extent,
and when they were broken they had
finer appearance and quality than sugar
was ever known to possess.
Mrs. Friend, and those connected
with her, received a large sum of money
In cash from the company for the proc
ess, and heavy block of the stock
which was disposed of, partly IN En-
gland and partly here. at the price
away beyond its par value. Just how
many persons were interested in the
scheme does not seem clear, nor will the
officers of the company tell just how
much money was paid to them, nal
though they admit, adding the cash and
the proceeds for stock together they
must have realized sum approximate
ing $3.50 900.
The scheme was cleverly worked to
the very last. The stockholders and
the officers of the company we're kept
IN perfect confidence as to the Iutuie of
the process until the largest possible
amount of monev had been secured
LIVERPOOL, Jan. 5.-Shares of the
Electric Sugar Refining Company have
fallen to 30 shillings. Warrants have
been issued for the apprehension of
Mrs Friend and her step-father, w. E.
Howard. who was director of the COM
pany and had charge of the affairs at
the factory in BROOKLYN
New YORK, Jan. 5.-The leading topic
of conversation among the brokers and
business men down town to-day is the
great expose of the late Prof. Friends
electric sugar refining company. Secre-
tary Robertson, of the defunct concern,
while sitting in his Office to-day
was nearly paralyzed by a we'll
known Wall Street man asking
him for ten shares Offering him $40 each
for them. Mr.. Robertson told the man
the shares were worthless. The man
insisted and the sale vas effected. The
purchase of these shares to-day was for
the purpose of squeezing" w. f. How
ard when he is caught. Howard is the
man who swore before notary public
that he had seen the professor" refine
raw sugar by electricity.
1t is now limited that Friend is not
dead at all. There has not been any
body found so far who has seen his
corpse. His death is said to have oc-
:. Cured two days before the blizzard last
March.