The Superior times. [volume] (Superior, Wis.) 1870-1912, 1889-01-12
FRAUD WINS ANORTUNE
The Electric Sugar Refinery Robbed
Of a Million Dollars.
MONSTER SWINDLE IN NEW YORK.
A Clever scheme to Fleece Stockholders
b. a Bogus Refining Process Sue
eessfulIy Carried Out-The
Public Loses Vast
Sum of Money.

New YORK, Jan. 4.-The Evening Sun
tonight prints what it calls IAN almost
incredible tale of a 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
humbug of the most bare faced kind.
"The ''secret process" was the inven-
ton or one Henry {. Friend, who ap-
peared 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 number of English
and American capitalists to organize
company and buy the "secret process
from him. This was done, factories
were erected, but no one was allowed
/ inside of them save Friend, his
| wife and few 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 anyone TO share his
secret. In the meantime the stock of
the company bad been bouncing up un-
| til 1t was worth nearly $500 per share of
I 300 par value. Friend then be-
gan to unload, when suddenly he
died. The officers of the company sus-
pected nothing wrong until few DAYS
ago, when It was found that Mrs Friend
and ali who had been connected with
the factory had disappeared, Mrs.
Friend leaving word that she had gone
to the West.
President Cottrill, Treasurer Robert
son and 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 quills OF
porcupine when he is fretlul.
There We're a number of machines
used III breaking cube sugar into
smaller PARTICLES and in granulating the
coarser grades, and nothing else. There
WAS no mysterious electrical apparatus
by which the sweet stuff should be
transformed as by a flushing into the
purest oaI,narine CRYSTALS, no won
derful cylinders, pots or pans
charged with purifying electrical
current There were crushers and
that was all.
An investigation at once set on foot
showed how the great scheme had been
| worked. Not a pound of raw sugar had
been refined in the factory. Quantities
of refined sugar, chiefly cubes, had been
purchased by the operators and pre-
! pared IN some secret spot with a chemi-
| lcal liquid HhlCe eliminated the ordinary
impurities found in all sugars. This
/ "doctOred' sugar W8s then Carted to
the factory III bags purporting to con-
tain raw sngar. The chemical used had
! crystalized the cubes to a large extent,
and when they were broken they had a
| finer appearance 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 proc
ess, and a heavy block of the stock
which was disposed OF, partly III En-
| gland and party here. at the price
| away beyond It's par value. Just how
many persons were interested in the
scheme does not seem clear, nor will the
| officers Of the company tell just how
much money was paid TO them, al
though they admit, adding the cash and
the proceeds for stock together they
must have realized a sum approximate
ing $3.50 600.
The scheme was cleverly worked to
the very last. lhe stOckholdcr, anc
the officers of the company we're kep
in perfect confidence as TO e rutufe o.
the process until the largest pJs- als.
amount OF MONEY haH Il.n ~arur-3
LIVERPOOL, Jan. 5.-Shares of the
Electric Sugar Refining Company have
fallen to 30 shillings. Warrants have
been issued for the apprehension of
Mrs. Friend and her step-father, w. +.
Howard. who Was director of the com
panY and had charge of the affairs at
the factory in Brooklyn.
New YORK. Jan. 5.-Ihe leading topic
of conversation among the brokers and
business men down town to-day Is the
great expose of the late Prof. Friends
electric sugar refining company. SeCre-
tary Robertson, of the delunct concern,
while sitting in his office to-day
was nearly paralyzed by a we'll
known Wall Street man asking
him for ten shares offering him SO each
for them. Mr.. Robertson told the man
the shares were worthless. The man
insisted and the sale vas effected. The
purchase of these shares to-day was for
the purpose of squeezing" W. F. How
ard when he is caught. Howard is .he
man who swore before notary public
that he had seen the professor" refine
raw sugar by electricity.
1t is now binted that Friend is not
dead at all. There has not been any
body found so far who has seen his
corpse. his death Is said to have oc-
CURED two days before the blizzard last