The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-01-05
A BIG HUMBUG PUNCTURED
Refining Sugar by Electricity Proves to
Be an Entirely Mythical Process.
How an Alleged Inventor Cunningly Manipu-
lated "Secret" for His Benefit, and at q
Loss of ST 600, 900 to Stockholders.


prints what it calls can almost incredible
tale of gigantic fraud" 1t states that the
Electric Sugar-refning Company has been
duped to the extent of over a million dol
lars, and that its whole ''secret process"
turns out to be humbug of the most bare
faced kind. The secret process" was the
invention of one Henry c. Friend, who APP
peared in the trade about four years ago
with samples of wonderfully pure sugar,
which he said had been refined by his 'elec-
trio process" About year ago he induced
number of English and American capital
lists to organize a company and buy the
''secret process" from him. This was done,
factories were erected, but no one was al
lowed inside of them save Friend, his wife
and few ignorant workmen. The rooms
where the refining was supposed to be 60
Ing 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 had been bouncing up until it was
worth nearly $500 per share of 500 par
value. Friend then began to unload, but
suddenly he died. The officers of the COM
pany suspected nothing wrong until few
days ago, when 1t was found that Mrs.
Friend and all who had been connected
Friend leaving word that she had gone to
the West.
President Cottrell, 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
porcupine when he is fretful. There were
a number of machines used in break
ing cube sugar into smaller parti-
cles and in graduating the coarser grades,
and nothing else. There was no mysteri-
Gus electrical apparatus by which the sweet
stuff should be transferred as by flash
into the purest saccharine crystals; no won
derful cylinders, pots or pans charged with
a purifying 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 and
prepared in some secret spot with chemi-
cal liquid which eliminated the ordinary
impurities. found in all sugars. This
factory in bags purporting to contain raw
sugar. The chemical used had crystallized
the cubes to large extent, and when they
were broken they had finer appearance
and quality than sugar was ever known to
possess.
Mrs. Friend, and those connected with
her, received a large sum of money in cash
from the company for the process. and a
heavy block of the stock, which was dis
posed of, partly in England 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 of
ficers tell just how much money was paid
to them, although they admit that. adding
the cash and the proceeds from the stock to-
thew haVa q a n
proximating $3.50 900. The scheme was clev-
erly worked to the very last. The stock
holders and the officers of the company
were kept in perfect confidence as to the
future of the process until the largest posi-
bic amount of money could be 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: Il am heart broken over the
discovery that we have made" and he GER
tainly appeared as if he were. Continuing,
he said: Il 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 fortunes to us all. Oh, we've
been shamefully treated and deceived. 1t
rageous thing / ever heard of. Yes,
we have. been over to the fac
tory and seen the interior of
the secret rooms / would rather not tell
all that they contain just yet. 1 am pre-
pairing statement for the public in which
/ will set all matters forth just as they
are"
SIS there ne prospect of being able to save
anything out of the wreckfn
mot that l 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 to find
Mrs. Friend and endeavOr to learn what
chemical was used in the sugar. After it is
treated with it it becomes a remarkably
pure product If this proves to be worth
anything it might save total collapse, but
l cannot have any faith in it. cannot tell
just yet how much stock is held here and in
England. That will all come out in my
statement"
The results of to-day's investigation of
the affairs of the Electric sugar-refinery
give additional evidences of fraud, and
President Cottrellleft the city toms ht for
the purpose of procuring the arrest of Mrs.
Olive Friend and William E. Howard.
LONDON, Jan. 4-The sensation in Birm-
ingharn over the revelations regarding the
Electric Sugar Refining Company has been
increased by alarming cablegrams. The
local holding of stock is stated to be very
heavy. One of the principal stockholders
has departed for America to inquiry person
ally into the matter. The stock fell greatly
in Birmingham and Liverpool to-day.