Evening journal., 1889-02-18
ONE GENT.
SACCHARINE SWlNDLERS.
They Are Now Languishing in
a Michigan Prison.
THE WHOLE GANG ARRESTED.

Wtllta,n n. Howard, IN an Interview, states
That the Electric Sugar Refining Com
pany Was Organized for Fraudulent Pur-
poses-stin Claiming Secret Process
ANN HARBoR, Mich, Feb IS Mrs Olive
+ Friend her step-father, William e How
ard her mother, Emily Howard, Orin A.
Holstetd and George Hostead, the parties
charged with conspiracy in the Electric
sugar Refining company frauds, we've ar
rested IN Milan and brought 30 this city and
placed Ia Jail IN the latter part Of January
last, in New York, three indictments were re-
tni.ed against the parties for obtaining
money under false pretenses. These mdct-
nients were kept profound secret Requis-
lions were obtained by District Attorney
Fellows from Governor Hill, and on these re-
luisitions warrants We're issued By Governor
Luce Feb. /. The trouble has been since that
il took time TO get Howard into Michigan.
He was staying at Windsor and would not
cross the river Mrs Friend returned to her
home at Milan Friday She had been traced
within reach Of the warrants several times,
but was not arrested because they could not
get Howard. On Saturday Howard, believ-
ing that no criminal action could be COM
menced and that he could defend civil suits,
returned 70 Milan, and the arrest Of the en-
tire gang followed
Detectives Reed and Rutland Of Inspector
Byrnes' force, were telegraphed for, and will
arrive TO take them TO New York for trial.
The prisoners were visited at the county
Jail and interviewed by a reporter Mr.. and
Mrs William f. Howard were in a private
bedroom on the second floor, not confined in
the jail proper, but being guarded by the
sheriff and his deputies. Mr.. Howard is suf-
fciing from nervous prostration.
Howard said IN response 20 questions that
the one thing that he wanted 10 have done
was 10 have IA complete and unqualified state
ment OF his side Of the case. He had tried TO
get the consent Of his attorneys. but they hes
| itated about the matter; even now he would
not dare 10 give "A statement without consult
ng them He denounced the arrest as with
out warrant He was not interested in the
company, and never held any OF the stock
except once, some five or six years ago when
| five shares Of the stock of the old company
were given to him, so that he might vote for
Professor Friend for some office, and which
he afterward returned to the company, and
they paid him $500, He had never held a
AT the time Of Friends death and prior he
he was employed by the company In superin-
tending tine building Of the machinery. Alter
Friends death Cotteril and Robinson came
70 him and induced him 70 remain and finish
the work He was paid 500 week for several
months and afterward raised to $50 He was
promised something good, and was to have
5000 when the first demonstration was
nalic 100000 more within month and Ss5,-
900 within six months
In his capacity as superintendent money
was paid to him 10 pay for machinery and
necessary articles for running the business.
Neither Cotterill nor any of the stockholders
ever inquired what this money was paid for
and never were 10 ask the question, as the
contract provided that they should not ask or
attempt to find out any Of the secrets Of the
concern He said that il was charged that
he and Mrs. Friend had obtained siSOO00 or
more from the company, and had claimed TO
have used it in buying machinery and pre-
pairing the building for use. This was not 50
they had never received, all told, from the
company more than 100000, and every dollar
of this had been used tor the purpose for
which IL was obtained. The machinery was
expensive and complicated, and for maintain
| ing secrecy each part was made at different
places. This made it cost more.
An the employees about the factory were
sworn to secrecy, signing am agreement to
that effect, and were puid good wages on this
account Howard was TO have received s., 900
ON his contract after the last demonstration,
but when finished the treasurer had said they
had but g., 500, and he only paid him that
amount, still owing him under his contract
$500 This sum, aside from his wages, was
the only money that was ever paid to him by
a.. a.
might been some chicanery about the business
CoIterill and Robinson We're the head Of the
swindle, and It was worked for their benefit
He says the whole scheme was originated by
Cotterill and Professor Friend for the purpose,
of swindling.
Barrels and barrels Of raw sugar would be
sent TO the factory by Cotteril and Robinson,
but every particle Of that article that was
sent 10 the factory is still there or was at the
time he left the factory. Not one pound had
ever been used, nor was il ever claimed by
him that any Of IL was used. Il could easily
have been dumped Off the wharf had there
been any purpose on his part TO defraud the
company.
He stil claims that there is a secret process
connected with the refining that was not dis-
covered when the factory was broken into.
The secret is only known to Mrs Friend, and
the present procedure is denounced by How
ard as a bluff 20 extort this secret from her.
Mrs Friend is Of medinm height and very
Heshy, Weighing over 200 pounds. She suf-
fers greatly from dropsy and heart troubles.
She is pleasant talker, but had little to say
on the arrest. She thought, like Howard,
that it was scheme 70 secure the secret for
mula but said it would not work. Shs said:
a am not a particle afraid of the present
aspect Of the case, although l was greatly
surprised at being arrested. | have been at
my home in Milan for the past four weeks,
\ an that time within reach Of the warrant
and could easily have left the country, but
have done nothing criminal and have not,
even received what my contract calls for.
Since my husband died 4 have not received a
single dollar from the company, except an
allowance Of 500 a month.