The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-01-09
A SUGAR REFINING COMPANY Dupeo
And the Bugbear of the Sugar Trust is Now
Dead.

NEW YORK, Jan. Am evening paper
prints what it calls "An almost incredible tale
of gigantic fraud" 1t states that the Electric
sugar refining company has been duped to the
extent of over a million dollars and that its
whole secret process" turns out to be hum
bug of the most baretaced kind. The secret
process" was the invention OF one Henry C..
Friend, who appeared 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 a number Of
English and American capitalists TO organize
company and buy the "secret process" from
him. This was done, factories erected, but no
one was allowed inside of them save Friend,
his wife and few ignorant 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 any one to share
his secret. In the meantime the stock OF the
company had been bouncing up until it was
worth nearly 500 per share of 500 per value.
Friend then began to unload but suddenly he
died.
The officers of the company suspected moth
ing wrong until few 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 Cottrill, Treasurer
Robertson and a 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 gave limitations of the quilts of a porcu-
pine when he is fretful. There were number
of machines used in breaking cube sugar into
smaller particles and in graduating the
coarser grades, and nothing else There was
no mysterious electrical apparatus by which
the sweet stuff should be transferred as by
flash into the pnrest saccharine crystals, no
wonderful cylinders, pots or pans charged
with purifying electrical current.
There were ofushers and that was all. In
veStlgatlOn once set on loot showed how the
great scheme had been worked. Not a pound
of sugar had been refined in the factory.
Quantities of refined sugar, chiefly cubes, had
had been purchased by the operators and pre-
pared in some secret spot with a chemical
liquid, which eliminated the ordinary Impuri-
ties found in all sugars. This "doctored" sugar
was carted to the factory in bags purporting TO
contain raw sugar. The chemical used had
crystallized the cubes to a large extent, and
when they were broken they had a finer ap-
pearance and quality than sugar was ever
known to possess.
Mrs Friend and those connected with her
received large sum OF money in cash from
the company for the proceeds and a heavy
block of the stock which was disposed of,
partly in England and partly here, at price
way beyond the par value. Just how many
persons were interested in the scheme does not
seem clear, nor will the officers 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 re-
allied a sum approximating $250000 The
scheme was cleverly worked 10 the very last.
The stockholders and the officers of the COM
pany were kept in perfect confidence as to the
future OF the process until the largest possible
amount of money could he 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 Robertson said to a reporter this
morning: 81 am he2rt-broken over the dlscov-
cry that we have made and he evidently APP
peared as if he were. Continuing, he said: Il
don't care so much about losing by own
money, but ] induced numbers of my friends
to invest in the scheme, and it is their financial
ruin that distresseS me. Then | had such high
hopes that the scheme would bring fortunes to
us all. Oh, we've been shamefully treated and
deceived. 1t means ruin to us. It's the most
outrageous thing I ever heard of. Yes we
have been over TO cue factory and seen the in
terror OF the secret rooms. | would rather not
tell all that they contain as yet. am prepar-
ing a statement for the public in which | will
set all matters forth just as they are"
rs there no prospect OF being able TO save
anything out of the wreck"
Not that can see. The revelations found
in the factory prove the entire thing to have
been fraud. President Cottrell left for the
West yesterday to try 10 find Mrs. Friend and
endeavor to learn what chemical was used in
the sugar, after it was treated with it, becomes
a remarkably pure product. If this proved to
be worth anything it might save total col
lapse, but can no: have any faith in it.
can not tell Just yet how much stock is held
here and in England. That will come out in
my statement"
The results OF tO-day's investigation of the
affairs of the Electric sugar refinery gives adj
terill left the city tonight for the purpose of
procuring the arrest OF Mrs. Olive Friend and
William i. Howard.