Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1889-01-10
iNNocENTs FlEEcED.

Turns Out TO be a Gigantic Fake, and
Large Number of English aud American
Capitalists who lsit at the Scheme to
Make Rapid Fortunes Find Themselves
SIN the Soup"
New York, Jan. 5.-The Evening Sun
prints what it calls can almost Incredible
tale of gigantic fraud" 1t states that the
Electric Sugar Refining Company has
been duped to the extent of over million
dollars and that its whole secret process
turns out to be "a humbug OF the most
fraudulent kind" The "secret process"
was the invention OF Henry c. Friend, who
appeared in the trade about four years
ago with samples of wonderful sugar,
which he said had been refined by his
electric process" About year ago ne
induced number of English and Ameri-
can capitalists to organize company ana
buy the ''secret process" from him. This
was done, and factories erected, but no one
was allowed inside of them save Friend,
his wife and few ignorant workmen.
The rooms where the refining was sup
posed to be going on were always kept Sc
curely locked, as Friend said his process
was not patentable, and he could not at
ford to allow any one to share his Sc
cret.
In the meantime the stock Of the COM
pany had been bounding up until 1t was
worth nearly $500 per share of 500 par
value. Friend then began to unload, but
suddenly he died. The officers OF the
company suspected nothing wrong until
few days ago, when it was found that
Mrs. Friend and all who had been con-
nected with the factory had disappeared,
Mrs. Friend leaving word that she had
gone to the West. President Cottrlll,
Treasurer Robinson and number or
stockholders proceeded to the factory and
invaded the secret rooms. What they DIS.
covered made their eyes bulge out, and
each and every hair on their heads gave
limitations of the quilts of porcuplne
when he is fretful. There were number
of machines used in breaking cube sugar
into smaller particles and in granu-
lating the coarser grades, and moth
ing else. There was no mystic
rious electrical apparatus by which
the sweet stuff should be transferred, as
by flash, into the purest sacchar1ne
crystals, no wonderful cylinders, pots or
pans charged with purifying electrical
currents. There were crushers, and that
was all. An investigation at once set on
foot, showed how the great scheme had
been worked. Not a pound of raw sugar
had been refined in the factory. Quantl-
ties of refined sugar, chiefly cubes, had
been purchased by the operators and pre-
w
ical liquid which eliminated the ordinary
impurities found in all sugars. This
''doctored" sugar was then carted to the
factory in bags purporting to contain raw
sugar. The chemical used had crystal
lied the cubes to large extent, and when
they were broken they had finer appear
ance and quality than sugar was ever
known to possess.
Mrs. Friend and those connected with
her received q large sum of money in
cash from the company and heavy block
of the stock which was disposed of,
partly in England and partly here, at a
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, although
they admit that adding the cash and the
proceeds from the stock together, they
must have realized a sum approximating
$3.50, 900. The scheme was cleverly worked
to the very last. The stockholders and
officers of the company We're kept in per-
feet ignorance as to the future of the pro-
cess until the largest possible amount OF
money could be secured, and then the
bubble was allowed to burst. There is no
such process as electrical sugar refining,
and the bugbear of the sugar trust IS
dead.
Treasurer Robinson said to an Evening
Sun reporter this morning: 81 am heart
broken over the discovery that we have
made" and he certainly appeared as II he
were. Continuing, he said: 81 don't care
so much about losing my own money, but
induced numbers of my friends to invest
in the scheme, and it is their financial
ruin that distresses me. Then had sucn
high hopes that the scheme would bring
Ill @f,-~1
shamefully treated and deceived. 1t
means ruin to us. It's the most outrage
Gus thing l ever heard of. Yes, we have
been over to the factory, and seen the in
terror of the secret rooms. | would rather
not tell all that they contain, just yet. l
an preparing a statement for the public
in which L will set all matters forth just
as they are"
rs there no prospect of being able to
save any thing out of the wreck"
''Not that l can see. The revelations
found in the factory prove the entire thing
10 have been a fraud. President Cottrill
eft for the West Wednesday to try to find
Mrs. Friend and endeavor to learn what
chemical was used in the sugar, which,
after it is treated with it, becomes re-
pure product. If this proves 10
De worth any thing, it may save total
collapse, but l can not have any faith in
t. l cannot tell just yet how much stock
s held here and in England. That will
all come out in my statement"
The process was kept secret, but SAM
pies of the sugar said to be refined were
exhibited. 1t will probably be shown that
he samples were never made from the
'aw material. The promoters of the
scheme promised from time to time to
make known the process to the con-
iding stockholders. Only last week they
declared that in q few days things
would be ripe for making the secret pub
ic. The bomb shell came in the shape Of
l cable sent to Liverpool day before yes
erday, in which it was stated that the
secret would not be given out
ust now, as the owners had some
loubt Of getting their dues. This was
as a ruse, and when the stock
led to further investigation,
he details of which are given above.
Yrs. Henry c. Friend and the Towards
ire now in Michigan. They will be ar
'ested, as detectives are already on the ir
rail. The arrest of the ringleaders will
be followed by other arrests,
md then the secrets of this gigantic swim
lie may come to light
Chicago Editors Charged with Libel.
CHICAGO, Jan. 5.-Joseph r. Dunlop,
,ity editor of the Chicago Times was ar
'ested last night, charged with criminal
ibel. and locked up at the Harrison street
'olice station. Warrants were sworn out
yesterday afternoon by Police Inspector
5onneid for the arrest o. James j. West,