Evening journal., 1889-01-05
AN ELECTRIC SHOCK.
Gigantic Swindle in Refined
Sugar.
CAPITALISTS cLEvERLY DuPED.
They Invested Money in a Process"
which Existed Only in Imagination
The Deception Kept Up by a blind"
Manufactory.

closing price Thursday wes fl2 The sud
den fall was oecasioned by rumors flashed
across the ocean that the company was a
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 heeced 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 torevolutionize 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,
a 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
refners begin to quail at the prospects the
new discovery presented.
Even the sugar trust began 10 fear the OPP
position Of the new company, and fabulous
prices We're offered for the purchase Of the
secret The sugar refners and tina sugar
trust are once more at ease. The secret had
its origin some four years ago In the brain Of
Henry G. Friend, an electrician Of this city.
Mr. Friend is described as a man Of great In
ventive genius, but very reticent, secretive
and suspicious Toward this end OF 1884
Friend called on a number Of sugar men and
announced the discovery Of his process He
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
Ia the trade.
The reflners liked the sugar but they
wanted Go know the process by which IL was
refined. This, however, Friend refused 70
reveal on the ground that his invention was
not ratentahle one He offered, however
to explain the process IL a 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
/ spectators, and the Electric Sugar Refining
company resulted. In the contract with
Friend the company provided that he should
be furnished with money 70 purchase the
machinery necessary for putting the new
method in operation, that on the completion
of the machinery he should lift the veil from
his hidden charm for the tangible cousidera.
tion Of s75, 600, and that thereafter be should
begin to turn out the product at a cost oi
eighty cents per ton, including all expenses
Friend set about the purchasing of the
machinery So fearful was he of the dis
coyery Of the secret that he had the various
parts manufactured in different plnces, les
the combination Of materials should sugges
the secret they were to inspire with life III
rented the old Smith -four mill at IS Hgmil
ton avenue, Brooklyn, and commenced opera
tions there. He admitted to his secret onl,
/ l. a. o..
George and Susan Halstead, VINO were ais,
related TO him. They and they only wer,
admitted to the inner chamber Of the factory
Friend was furnished with Sis0,OO0 for thl
purchase Of machinery. The factory wa
{ fitted up in the most gorgeous style, $40, ,OOl
being expended on this The Brush eleetri,
light flashed through the factory, illuminnt
ing even the mysterious rooms Of the secre
treasure. Each Of the men had his privat,
room, where they worked by day and slep
by night. Their meals were provided b,
Jerry, a mysterious servant who ATTENDED
to all their wants at the company's expense
But Jerry was limited to certain room
of the factory
In March last Friend died, bequeathinp
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 a salary Of $40 week Mrs
Friend also received a consideration Of S1Ol
month. Meantime samples in fourteen
different grades were turned out, the sugar
was doomed everywhere, and the of1iciall
became more and more anxious to learn tn,
secret. They were invited to witness experi
ments at the factory, that is, to listen {,
them. They were shown the raw sugar
For ten minutes they listened with breath
less interest to the noise Of the wondrou
! fortune making machinery, then they feaste.
! their eyes on results such as man had neve
{ seen. At last, some two months ago,
happy day came Mrs. Friend wrote tina
( the terms Of the contract would be futile,
in the early days Of the new year.
Two weeks ago Howard went west to spen,
| the holidays at Milan On the oath the presi
dent Of the company, w. II. Cotterill, ais
left for Milan to make arrangements for tn
I fulfllment Of the contract He was sur
prised to find that Mrs. Friend now refuset
70 unravel the secret. He insisted that evei
II the preparations were not complete sh
should pass fifty barrels OF raw sugar througl
J the process in presence of her own LAWYERS
, but this she declined to accede to. With hi
: first suspicious aroused President Cotteri
returned TO this city, went straight 70 tn
/ factory in Brooklyn, and broke down I'll
J barriers that sheltered the mystic secret.
His suspicious were fnlly confirmed. Tn
/ wonderful machinery was Of a very ordinar
3 character, the raw sugar which had bee
! supplied lay around untouched, and quaint
ties Of purchased refined sugar suggested th
origin of the product Meantime the Ha
steads had disappeared from the scene an
. "Jerry' was in sole possession.
4 Armed with this additional informatio
i Mr.. Cotterin started Wednesday night fc
/ Milan to demand immediate explanation {
i cause the arrest of the schemcrs. He wa
( expected TO reach there yesterday, and th
( result of his visit is looked forward to by I'll
a shareholders with breathless interest
LONDON, Jan. 5-The sensation created
Birmingham by the exposure Of the fraud j
connection with the Electric Sugar Refnin
!, company is increasing rapidly under the il
, duence Of alarming kilograms from Americ
alleging the utter worthlessness OF the proce.
y upon which the company's alleged operation
e were based. The holding Of the company
y stock in Bi. mingham is stated to be go, ,00
One Of the principal holders has taken h
departure for America TO make personal il
vestigation. Upon the receipt Of the news
the alleged frauds the price of the stock sui
tained heavy fall, both here and in Livel
pool
Dufnr Defeats Ross.