The Barre daily times. (Barre, Vt.) 1897-1959, 1920-08-20
PONZI CLAIMS OVER
$4,OOO,O00 is LEFT
The Liabilities Of Notehold-
ers Are Likely to Be
S7,OOO,OO0. According to
the Estimate of Edwin l..
Pride, the Accountant
Who Has Been Making
the Audit.

Boston, Aug. 20.-The broken for
tunes of Charles Ponzi and the inter
ests of thousands of investors in hi
quick riches scheme were placed in re
ceivership by Judge Morton of the fed
eral district court to-day
The court appointed three receivers
William r. Sears of Cohasset; JOIN
Forbes Perkins of Milton, and Edward
A. Thurston of FAN River 1t was or
dcred that they qualify in bonds Of
$4,000 each.
The amount of assets to be handled
is uncertain, Ponzi's statement that
they would aggregate S4,000,000 being
the only estimate available.
The receivers will be called upon to
adjust claims which already aggregate
more than that sum on the basis of
records of noteholders tabulated by the
states attorney general, and the total
is likely to run to So 900, 900, according
to the estimate of Edwin l.. Pride, the
accountant, who has been making an
audit of Ponzi's liabilities for the fed
eral authorities. These figures includ-
ed the 80 per cene promised by Ponzi
TO his investors, and incorporated in
the notes which he issued for payment
in 90 days
With the probability that settlement
of claims viii be on the basis of actual
investments, the figures will be pared
down by approximately third. The
receivers also will be called upon to
decide whether they will proceed
against those persons to whom Ponzi
paid the so per cent profit before he
stopped doing business.
He asserted yesterday that he had
paid out s7,5O0,0Oo. Some of these
payments were refunds of actual in
vestments only, hundreds of persons
having hastened to abandon their prom
ised profits in the run on Withdrawals
which marked several of the later
stages of the operations of Ponzi's Sc.
eurities Exchange Co Accordingly, the
amount of money paid out by Ponzi in
interest, and subject to action by the
receivers should it be held that undue
preference was given the persons who
received it, would be approximately
Sa.000,O00.
OF the receivers named by Judge
Morton, Sears and Thurston are lawv-
ers, and Perkins a business man. Sears
appeared at the hearing on the petit
tion for receivers as the representa- |
tive of the Legal Aid society of this |
city, and in behalf Of some of the
creditors. Thurston is former chair.
man Of the Republican state commit.
tee. Perkins is a former secretary and |
treasurer of the Calumet and Hecla |
Mining Co.
Receiver for Old Colony Foreign Ex-
change.
The Old Colony Foreign exchange
company, a rival Of Ponzi in offering
high rates of interest for investments.
also was placed in receivership bv
Judge Morton, John f. Hanningan cf
this city, a lawyer, being named as re-
ceiver.
A belief that Ncreditors Of the com
pany receive 90 per cent Of their in
vestment was expressed in the fed.
eral court by Robert Gallagher. coun-
sci for the company. This figure is
considerably higher than the estimate
Of Attorney General Allen Of Massa-
chusetts. who said yesterday that the
visible assets thus far amounted %
something like sl500O0 and that the
total Of the companv's business in
notes was probably s35ooo0.
Mr.. Gallagher told the court that
aside from the assets in the posses
sion Of Attorney General Allen and
the police there was a deposit Of sl5oo
in = Boston hank in the name Of the
wife Of the president Of the company.
Charles Brightvell. a deposit in p New
York bank Of sl5,OOo, and the Office
furniture
Judge Morton ssid that the receiver
ship would cover the three petitions
sled in the case. one against the cana-
psuy and one esch against President /
Brichtven and The secretary. Rayrnanl
Never. In this respect the action 49, /
from that in the PoEzi re- {
r.iverhip where onlv one n ths ss,- j.
.rsl petitions wss acted on