The Washington times., 1920-08-14
HUNT FOR HIDDEN
ASSETS OF P0Nz|
Liabilities Set at S5,000,000.
Second Bubble Breaks-Jail
loop. c. Promoter.
CONTINUED from First Page.>

lSOntlnueO from L lTst Idsc'I
others were bad. and there was very
little cash left.
The last statement of the bank
showed deposits of $3.50
Creditors OF the Old Colony For
eign Exchange Company filed an in
voluntary petition in bankruptcy
against the concern today.
When c. NJ Brightwell. president OF
the Old Colony Foreign Exchange
Company, admitted he was insolvent.
he broke the last vestige OF faith in
those who first pursued the will o. the
wisp promise of big returns from
Charles Ponzi and then turned to the
more attractive 100 per cent interest
bait OF Brightwell.
Now precautions are being taken to
protect the lives of Ponzi and Bright
well, whose net gathered in gullible
thousands who sought to have things
possessed by their more fortunate and
more cautious fellow-citizens.
A threat of death hangs over Ponzi
in the form OF letter received yes
terday, and death stared at Brightwell
as he huddled in his office the same
day. The thirteenth" will probably
be long remembered by both.
In place of the dreams of riches
quickly won and in part enjoyed, there
ring in the ears of both now the cries
OF hundreds of terror-stricken indi-
viduals who stormed the doors OF the
defunct Old Colony Foreign Exchange
Company yesterday.
.LYNCH HIM. CRY.
Get Brightwell" they cried
Lynch him. And as Brightwell, the
newcomer in this field of financial
wizardry," peered through his office
window at the rushing, gesticulating
tide Of human beings the echo car
ried on to the home of Ponzi.
Brightwell had telephone at
hand. He seized 1t and appealed to
police to come and save him. Unable
TO clear the street, the police finally
resorted to strategy.
60 down to the branch office.
They're paying off the notes there"
they told the crowd, and away went
thousands of men and women, hop
ing to get their money back.
But they weren't paying off at the
branch office. Three clerks were the
only ones in the office and they got
out Just in time to escape the ava
lanche Later the lessons of the
building in which Brightwell had his
main office dispossessed him, setting
his office fixtures on the sidewalks.
District Attorney Pelletier for
mally closed the Old Colony Foreign
Exchange Company, but it was just
a perfunctory proceeding. The Old
Colony had blown up scattering the
money OF thousands of working
people where it probably never can
be found, and there was nothing
much left to close. Even the doors
OF the fashy banking offices had
been battered in.
DREw,I 10000 CUSTOMERS.
Forecasts of the liabilities of Ponzi
indicated that he had drawn in 10000
Investors" with his promises of so
per cent profit in forty-five days. The
audit of the Federal officials, now
going over his books, was expected to
show that he collected at least sl4.-
600 600 and had paid out not more
than $4,000, 900 before the State clos
cd his doors and those of the Hanover
Trust Company and pricked the Bos-
ton bubble. The Federal agents say
the savings of thousands of working
people went up in the financial explo-
sion.
state Bank Commissioner Allen says
<hat the Hanover organization Is hope
lessly insolvent and tho bank held
s125 900 Of state funds, a fact which
~ Investigations now being pursued
into the official conduct of two indl.
vlduals.
The investigation has shown, ac-
cording to banking authorities, that
Ponzi did not deal heavily in inter-
national reply coupons as he pretend
cd 10 be doing. In fact, they say, he
never transacted more than a few
hundred dollars worth OF business in
these certificates.
II became known that while Ponzi
was putting up his devil-may-care
front during the last few weeks, pre-.
tending TO have nothing to fear from
an investigation, he was also max Ing
tho most frantic efforts to borrow
money from legitimate banks to cover
the drafts OF his bank. lie nlso tried
TO enlist the financial genius OF
Thomas W. Lawson, of "Frensled PIN.
nance" fame. u is said