Waterbury evening Democrat., 1889-01-05
AN ELECTRIC SHOCK.
Gigantic Swindle in Refined
 Sugar.
They Invested Money in "Process" Which Existed Only in Imagination. The Deception Kept Up by "Blind' Manufactory.

The Deception Kept Up by Blind"
 Manufactory.
 NEW YORK, Jan 5-A month ago the stock of the Electric Sugar Refining com pany was valued in England at el17 share. Wednesday it had fallen to ESQ, and the closing price Thursday was g12. The sud- den fall was occasioned by rumors flashed across the ocean that the company was q fraud. The nature of the rumors was that the secret process of sugar refining on which the company's fate was based had proved to be wholly mythical, and that the shareholders had been leeced by the holders of the iron secret. The events of the last two days seem to confirm strongly the suspicious which have been raised.
 The secret in question promised, when put into practice, to revolutionize the sugar trade by placing in the hands of the fortunate shareholders a monopoly of the sugar refining industry of the world. By passing through mystical process fired with electric force raw sugar was to be transformed, at fabu- lously cheap price, into refined sugar of un- equaled purity. The samples of its work were pronounced of unexampled purity by the best authorities of both continents. Sugar refiners begin to quail at the prospects the new discovery presented
 Even the sugar trust began to fear the op- position of the new company, and fabulous prices were offered for the purchase of the secret. The sugar refiners and the sugar trust are once more at ease The secret had its origin some four years ago in the brain of Henry C. Friend, an electrician of this city MT. Friend is described man of great in yentive genius, but very reticent, secretive and suspicious Toward the end of 1884 Friend called on number of sugar men and announced tho HiSpnvprv nf pa then lived at No. 227 East Sixtieth street, and he conducted his mechanical process there Sample after sample of his work was exhibited and caused the greatest interest in the trade
 The retiners liked the sugar, but they wanted to know the process by which it was refined. This, however, Friend refused to reveal on the ground that his invention was not a latentable one He offered however, to explain the process if company were formed who would buy the secret from him. For some time the inventors secrecy caused a general suspicion of his claims, but eventu- ally the scheme was taken up by prominent speculators, and the Electric Sugar Refining company resulted. In the contract with Friend the company provided that he should be furnished with money to purchase the machinery necessary for putting the new method ill operation, that on the completion Of the machinery he should lift the veil from his hidden charm for the tangible considera- tion of S15, ,000 and that thereafter he should begin to turnout the product at a cost of eighty cents per ton, including all expenses.
 Friend set about the purchasing of the machinery. So fearful was he of the dis covery of the secret that he had the various parts manufactured in different places, lest the combination of materials should suggest ha hav to rented the old Smith flour mill at IS Hamil- ton avenue, Brooklyn, and commenced opera tions there. He admitted to his secret only his wife, w. k. Howard, her stepfather and George and Susan Halstead, who were also related to him. They and they only were admitted to the inner chamber of the factory.
 Friend was furnished with SlSO, 900 for the purchase of machinery. The factory was fitted up i'll the most gorgeous style, S4OOOO being expended on this The Brush electric light flashed through the factory, illuminat- Ing even the mysterious rooms of the secret treasure. Each of the men had his private room, where they worked by day and slept by night Their meals were provided by "Jerry,"a mysterious servant who attended to all their wants at the company's expense But "Jerry" was limited to certain rooms of the factory.
 In March last Friend died, beaueathing his secret to his wife After his death the latter went to live with her sister in Milan. Mich, and Howard remained in charge of the factory, on salary of $40 week. Mrs Friend also received consideration of SlOO a month. Meantime samples in fourteen different grades were turned out the sugar was boomed everywhere, and the officials became more and more anxious to learn the secret. They were invited to witness experi. mpnfS factory tnot ic tp ;e&,, them. They were shown the raw sugar, For ten minutes they listened with breath less interest to the noise of the wondrous fortune making machinery, then they feasted their eyes on results such as man had never seen. At last, some two months ago. happy day came. Mrs. Friend wrote that the terms of the contract would be fulfilled in the early days of the new year
 Two weeks ago Howard went west to spend the holidays at Milan. On the 24th the presi- dent of the company, w. H. Cotterill. also left for Milan to make arrangements for the fulhllment of the contract. He was sur- prised to find that Mrs. Friend now refused to unravel the secret He insisted that even If the preparations were not complete she should pass fifty barrels of raw sugar throuph the process i'll presence of her own lawyers but this she declined to accede to- With his first suspicious aroused President Cotteriu returned to this city, went straight to the factory in Brooklyn, and broke down the barriers that sheltered the mystic secret.
 His suspicious were fnlly confirmed. The wonderful machinery was of a very ordinary character, the raw sugar which had been supplied lay around untouched, and auanti- ties of purchased refined sugar suggested the origin Of the product Meantime the Hal. steads had disappeared from the scene and "Jerry" was in sole possession
 Armed with this additional information Mir. Cotterill started Wednesday night for Milan to demand immediate explanation or cause the arrest of the schemers He was expected to reach there yesterday, and the result of his visit is looked forward to by the shareholders with breathless interest.
 LONDON, Jan. 5-The sensation created in Birmingham by the exposure of the fraud in connection with the Electric Sugar Refining company is increasing rapidly under the in huence of alarming telegrams from America alleging the utter worthlessness of the process upon which the company's alleged operations were based. The holding of the company's stock in Birmingham is stated to be 92O, 900. | One of the principal holders has taken his departure for America to make a personal in- l yestigation. Upon the receipt of the news of the alleged frauds the price of the stock sus- tained a heavy fall, both here and in Liver |