Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-14
THIRD FINANCIAL
CONCERN IS CLOSED
IN PONZI INQUIRY
CONTINUED from First Page.)

eral and state officials made deter
mined efforts to salvage the cargo Of
millions of dollars intrusted to Ponzi
by thousands of investors in his 80
per cent in three months"
PonZi ate his breakfast in the Mid
dlesex county Jail, in East Cambridge,
prisoner of the United States gov
eminent in default of $4,000 bonds.
Three officers of the Old Colony
concern of Ponzfs Securities Ex-
change Company, had their morning
meal in the Charles street jail. pris-
oners of the commonwealth in default
of $50, 900 bonds each.
Three Omcers Held.
The three officers of the company
who were held are Charles M. Bright
we'll. president and treasurer of the
concern; Raymond Meyers. Office
manager. and Fred Meyers, sales
agent. The Meyers are brothers. The
men were held on technical charges
of larceny of $500 from persons I'M
known, upon representation of AL
bert Hurwitz. assistant attorney gen.
eral, that the company's transactions
amounted to hundreds of thousands Of
dollars; the bonds were set at a high
figure.
Ponzi. whose bondsman surrendered
him yesterday to the federal authori-
ties, was confronted with the alter
tody or, il he could find another
bondsman. of being arrested again
by the commonwealth under a
blanket warrant issued in the munic-
ipal court charging. him with lar
ceny in fifty-three counts, totaling
$4,000.
1t was said that if Ponzi could find
another bondsman and elected to face
rearrest by the state a bond of pro-
hibitive figures would be asked. The
authorities were said to be deter
mined that the sensational financier
should remain@in custody, the prin
cipal reason for this being desire
to preserve for his creditors whatever
assets he may have and the fear that
PonZi might seek to dissipate or
transfer them II out on bail. Edwin
L. Pride, federal auditor of Ponzi's
known liabilities at sS.000.000. and
Ponzi claimed assets of about $4,000,
600. In this connection Mr.. Pride
said:
Il am inclined to believe that a
great deal of money collected by
Ponzi and his agents has been de-
posted in the names of others. The
results of a rigorous examination OF
Ponzi's affairs will speak for them
selves"
referring 10 the possible transfer
of large sums by PonZi to his wife
Mr.. Pride said:
Can BE Taken From Wife.
1T can be taken away from her
and il will be. 1t does not belong
to her. 1t is money that was OBJ
tanned under fraudulent pretenses, to
be used for fraudulent purposes. In
going after what may be called
| Pouzi's concealed assets. We shall
reach the large amount transferred
to or deposited in the name of Mrs
| PonZi.'
he second of the two petitions tina
! have been filed to have PonZi ad
| Judged bankrupt was pending in the
! federal court today. The three lates
| petitioners, holders of PonZfs note.
| for a total of S2.625, asked that two
| partners of PonZi, namely. John )
! Dondero of Medford and Guglielmt
| Bertollotti of Parma, Italy, also b'
| adjudged bankrupt.
/ petition for a receiver to admin
| lister Ponzis affairs also has beef
| filed by creditors.
| Examination of the books of tn,
| Hanover Trust Company. which wal
Ponzi's chief depository and in which
| he was a stakeholder and director
was continued today by members o
Bank Commissioner Aliens staff Mr.
| Allen. who closed the Hanover Trus
Company last Wednesday, in a state
ment intended to reassure depositorl
in that Institution and in other trus
companies. said:
Nothing has developed SO far t,
lead me to believe that the deposi
| tors will lose one dollar. The Han
over Trust Company is the only trus
| company in New England that is in
volved in Ponzi's failure"
Run ON Trust Companies.
The financial district was concern
| ed yesterday when a small run wa
made on several trust companies. due