The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-01-07
AN ELECTRIC sWINpLR.
Freund's Great Sugar Refining Pro
cess a Fraud.


cess q Fraud.
The following is fuller account of the
great electrical sugar refinery fraud in New
York than appeared in yesterdays MORN
ING NEWS. Perhaps the Keey motor
stockholders find some comfort in it:
The stockholders in the Electric Sugar
Refining Company OF New York, who sup
posed they had marvelously cheap process
for refining sugar by the use of electricity,
have lust discoverld thqt one of the most
gigantic frauds of the century has been
perpetrated upon them. Not only the putt
lie but the officers of the company and pro
moters Of the scheme have been swindled
Prof. Henry c. Freund was well known
four years ago in this city as a chemist and
electrician. In 1884 Freund tegan to go the
rounds Of the sugar rednereS, with view
of getting a number of capitalists TO take
hold OF a process of refining sugar by cleo
tricitv, which he claimed would make the
cost nominal and produce the refined sugar
in One-tenth the time requisite in the ordi-
nary process. Meeting with little success
in this country, Freund went abroad an
finally engaged w. A. Cotteril and James
U. Robertson, two Englishmen widely
known in England as shipping merchants.
These gre ltlemen came to America and or
gained the Electric Sugar Refining Com
50 Wall street. The company was capital.
lied at 81 ,000, 900 in 800 shares. Cotterill
was made president aud Robertson secre-
tary. Freund retained 5, $50 shares, a CON
trolling interest in the company. Nearly
500, 600 was advanced to Freund the first
year to enable him TO complete his machin-
cry. Freund died last March. Mrs Freund
ard Mr.. and Mrs. Howard, her mother and
steptatber, claimed that the secret of the
process had been bequeathed to them. A
factory was built at No is Hamilton ave-
nue., Brooklyn, at Il cost OF $50 900.
Now comes the most remarkable part of
the story. Neither Freund nor his relatives
would reveal this process of refining sugar.
Two rooms, called the laboratory, in the
factory were kept under lock and key
When the process was TO be tested Freund
and his relatives would show the directors
of The company into these rooms. Nothing
WAS visible but plain deal table with
some mechanism on the top, > feet square,
covered by cloth. This cloth could not
be removed. A barrel of raw sugar would
be left in the room, everybody barred out
save the mysterious operators, and in six
minutes the doors would be thrown open,
aud there in the place of the
raw sugar was barrel of the
most beautifully white crystallized
sugar ever exhibited. The directors watched
the windows AID took every human precau-
ton. Such was their faith in the process
that they would not sell their shares at any
price. The officers Of the company, on the
strength of their reputation in England,
disposed Of 5000 shares there at prices
ranging from $500 to sG75 a share, mostly to
sug refining men in London and Liver
pool. The idea was laughed at at first.
When samples OF the sugar were shown.
however, and an offer Of $500 made to any
refner who could produce as good sugar by
any known process, the prices Of certificates
sold at enormous rates. One certif icate Of
ten shares was sold to Liverpool refiuer
one month az TO 5000.
A final test Of the process was made Dec
9 aud 4. According to agreement fifty tons
Of refined sugar were 70 DO produced from
raw sugar II the tlst was successful Mrs.
Freund was 70 receive large sum for the
revelation Of the secret process and patent
obtained by the company. The Freund
gang had already received $50, 900 for de-
veloping the process The officers u the
company, Lawson y. Fuller and other gem
tlemel interested aud numuer OF
sugar experts were present at the