Wichita eagle., 1889-01-05
A BUBBLE.BURsTED.
Stockholders in the Electric Sugar Refining
Company Duped Of Thousands.

New YORK, Jan. 4.-The Evening Sun
| prints what it calls IAN almost incredible
tale of gigantic fraud" It states that
the Electric Sugar Refining company has
been duped to the extent of over million
dollars, and that its secret process turns
out to be humbug of the most bare
| faced kind.
The 'secret process was the invention
| of Mr.. 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 a year ago he induced a
| number of English ana American capital
| lists to organize company and buy the
secret process" from him. This WAS
done, factories erected, but no one was in
side of them save his friend, his wife and a
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 par value. Friend then began to I'M
load, but suddenly he died The officers
OF the company suspected nothing wrong
until few days ago, when it was found
that Mrs. Friend and all who had been
connected with the factory had disap-
peared, Mrs. Friend leaving word that she
had gone to the west President Cottrill,
Treasurer Robertson and a number OF
stockholders, proceeded 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 porcu-
pine when he is fretful There were
a number of machines used in breaking
int rfi ia
and in granulating the coarser grades, and
nothing else. There was no mysterious
electrical apparatus by which the sweet
stuff could be transferred as by fash
into the purest saccharine crystals, no won
derful pots or pans charged with purging
electrical current. There were crushers
and that was all.
Investigation at once set on foot showed
how the great scheme had been worked.
Not pound of raw sugar had been refined
IN the factory. Quantities of refined sugar,
chiefly cubes, had been purchased by the
operators add prepared in some secret spot
with chemical liquid which eliminated
the ordinary impurities found in all
sugars. This "doctored" sugar was then
carted TO the factory in bags pur-
porting to contain raw sugar. The
chemical used had chrystaliZed 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 a large sum in cash
from the company for the process and a
heavy block of the stock which was dis
posed of, partly in England and partly
here at price away beyond its par value.
Just how many persons were interested in
the scheme does not seem clear, nor will
the officers of the company tell how
much money was paid to them,
though they admit that, adding the
cash and proceeds from the stock
together, they must have received
a sum approximating $3.50, 900. The scheme
cleverly worked to the very last. The
stockholders and the officers of the COM
pany We're kept in perfect confidence as to
the future OF the proceeds until the largest
possible amount of money could be Sc
cured and then the bubble was allowed to
burst There is no such process as an cleo
trical sugar refining and the bugbear of
the sugar trust is dead.
Treasurer Robertson said to an Evening
Sun reporter this morning: Il am heart
broken over the discovery that we have
made" and he certainly appeared as if he
were. Continuing he said: II don't care
so much about losing my 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 for
tunes TO us All. On, we've Deen Snalile-
fully tricked and deceived. 1t means ruin
to us. It's the most outrageous thing |
ever heard Of. Yes, we have been over to
the factory and seen the interior of the
secret rooms. | would rather not tell all
that they contained just yet. | am pre-
pairing 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 l can see. The revelations |
found in the factory prove the entire |
thing to have been fraud. PRECEDENT |
Cotterill left for the west yesterday TO try |
to find Mrs Friend and endeavor to learn |
what chemical was used in the sugar. |
After it is treated with it it becomes re
markedly pure product. If this proves to |
be worth anything it might save total |
collapse, but | cannot have any faith it it, |
cannot tell just yet how much stock is |
held here and in England. That will all |
come out in my statement"