The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1889-01-10
THE SUGAR swINDLE.

Warrants Issued for the Arrest of the
Electric Sugar Swlndlers.
NEW YORK, January 7.-Protessor Henry
G. Friends carefully guarded secret pro-
cess for refining crude sugar, which was
the basis of the Electric Sugar Refining
company has been exposed. 1t wes dis
covered by dressmaker who was en-
ployed by the Friends during the expert
mental" stage of the great swindle, and
who overheard the family discussing the
"secret" through an open register imme-
diately after $4,000 demonstration. 1t
consisted in passing the raw material
through water pipes, and then admitting
the would-be investors to inspect the re-
suit in the professors little machine which
was always loaded with the refined article.
Treasurer Robertson, of the Electric
Sugar company, last night received tele-
gram from President Cottrell, dated
Ann Arbor, Mich, which read something
like this: "a detective wires from Detroit
that the people we want have gone to Can
ada"
"That's all 1 know, about" said Mr..
Robertson. "From the wording of the
telegram judge all the conspirators have
fed" The Canadians will be glad to see
them. This intelligence is deemed suffi-
cient to destroy every possibility that
either Mrs.. Friend or Mrs. Howard
will appear in New York as President Cot
trell announced Saturday night. Warrants
have been issued for the arrest of the
swindlers should they enter this state.
POINTS IN THE CONTRACT.
DETROIT, January THE Evening
Journals special from Ann Arbor, Mich,
says: Mrs. Friend and the Towards are
still in this city, but they have orders from
their attorneys not to be seen before
O'Clock this evening.
The journal has read the famous CON
tract between the Friends and the Electric
Refining company. 1t was drawn July 8,
1884, and executed November 20, 1884.
1t was the most one-sided contract
ever seen in Michigan, perhaps. To be
made binding it is witnessed, signed and
sealed on each of its nineteen typewriter
pages. By its terms, Henry Friend and
Olive Friend, his wife, covenant with
the Electric Sugar Refining com pany, said
Friends having invented the process for
refining the different grades of sugar at
prices far below the market value thereof,
making SO per cent of fine sugar with
loss of weight of no. per cent. There is
nothing in the contract stating that raw
sugar shall be used. The contract is based
on the secret process. The company alb
solutely bound itself in no way to attempt
to find out what the secret was. The
friends were to remain in possession of
the secret, and any attempt on the part
OF the company, their EN- ployes, agents or
lawyers to find out what the secret was
forfeited all their rights and any stock
they may have held.
1t Wss also condition that the re-
quest of the stockholders for the secrecy
or any attempt to force it by legal process
should work forfeiture. The contract !
was signed on behalf of the company by |
R. W. Woodwork, president; W. H. Cot
trlll, secretary, and on the part of the
Friends by PROT Henry @. Friend and Olive
q. Friend. The witnesses are Howard |
and Emily Howard. On the contracts are
the endorsements of ten payments, ag-
gregating 100000, which were made be-
tweenJune 80 and November II, 1887.
On Saturday afternoon W. E. Howard
to Emily Howard, his wife,
his farm and buildings near Milan for the
of $4,000, and immedi-
ately thereafter Mrs. Howard negotiates
q mortgage to W. d. Hartman for
$4,000 this morning. Mrs. Howard
her own place, consisting of a
handsome new house in Milan, to Doctor
Emmitt s. Pyle for $4,000.