The Washington times., 1920-08-18

BOSTON, Aug. ls.--Henry 4.
Nielsen, OF Cambridge former agent
OF Charles Ponzi and alleged by the
police TO be one OF his secret part
nsrs. was arrested today charged
with larceny OF $500 from an un-
known person. ..'~. =,
Ponzi still insists he Is solvent He
says the state has shown he mas only
$1,000 900 In liabilities. which figures
include the 80 per cent interest on out
stsnding notes, which interest, he as,
serts, is not liability. This makes
his liabilities. he continued. not more
than $1,000, 900. against which he has
valuable securities. his certincAte OF
deposit with the Hanover Trust Com
many for 81, 500, 900 (reduced $500, 900
by a loarl, his palatial Lexington res1
idence and numerous autom )biles.
The wizard also charges that he has
been the victim OF big swindling
scheme in that notes which he Issued
for $50 have been raised TO. $500 and
notes for 400 to 81 900 by the ferEers.
He declares that Notwithstanding
every precaution to guard against
such acts many OF these notes got
by in the rush OF payments incident to
the seyegsl days run on his offices.
ITALIAN WINES SEIZED. I
While the day was quiet at the
Jail for Ponzi, his beautiful home in
Lexington was rsided by prohibition
enforcement agents. who seized
scventy-nve GALLONS OF Italian wine.
three dozen bottles OF Chianti and
small quantity of vermuth, besides
several empty Whiskey cases. Mrs.
Ponzi was at home during the raid
and she was questioned as to the
presence of the liquor in the house.
The wine was for Mr.. Ponzfs aged
mother, she explained, but as to how
II got into the house she denied all
knowledge. The Ponzis moved into
their new house last June. IL Is said
that no permit was issued for the
removal of the liquors.
Up at the State House the number
OF noteholders who called personally
TO present their Ponzi notes dwindled
to less than 125. but the mail busi-
ness assumed large proportions. About
LOO notes were received by mail.
and the total amount OF claims filed
during the day totalled 3537,53i. max
ing the total thus far filed ~Hith the
attorney general the sum of $3,340.o34.
MAY APPOINT RECEIVER.
The question of placing the affairs
of Charles Ponzi in the hands of
receiver was considered by Judge
James NJ Morton in the United States
District Court and after the hearing
the matter was taken under advise
ment.
In addressing the court. Attorney
General Allen said: II believe this
case involves approximately 10000
creditors. Yesterday, at my office.
l,5Oo creditors filed claims that bring
the total up to more than $4,000, 900,
and to-day's mail has not been
opened yet. | believe the best way
would be to appoint one receiver who
would have sole responsibility.
"Ponzi told me that he had no
partner; that he was solely re-
sponsible and that 1t was his own
business. Since then he has stated
that much that he told me was not
true. If the capital of the Hanover
Trust Company is seriously i'm
paired. in view of the fact that Ponzi
owns 1000 shares in this bank and
has paid for them. then the interest
OF the Commonwealth is paramount
to that of any other creditor"
WIZARDS WIFE AT JAIL.
Mrs. Ponzi today obtained a pass.
good for a week, to visit her husband
in East Cambridge jail IhlS actlon
was taken to mean that Ponzi has
abandoned his fight to be released on
bail. He tried prison fare today for
the first time since being taken to
East Cambridge, but abandoned II
after a breakfast OF hot coffee. frank
furters. and bread. He sent out for
his dinner of broiled chicken, sliced
tomatoes, bread and butter, and two
bottles of ginger ale. He did, how
ever. stick to his clay pipe, which
he has taken up in place of his
usual cigarettes.
WAITER RETURNS a1.IJO.
Contributions Of profits from con-
science-stricken or scared note hold
ers continue to pour into the state
house, and now total thousands of
dollars. One was for $1,l50 from a
waiter at the Hotel Lenox.
Creditors proceedings against the
Old Colony Foreign Exchange Com
pany, the Ponzi rival. were put over