New-York tribune., 1920-08-03

long interview with McMastcrs this
afternoon by United States authorities.
Assistant District Attorney Daniel
Shea presided. Half dozen Postoffice
Department officials and agents of the
Department Of Justice were present.
Ponzi and Joseph w. Fowler, one Of
his attorneys, then rode in the tnan-
cier's limousine to the State House,
where they were closeted two hours
with Attorney General Allen. There
had been persistent rumor that M
Allen would ask Ponzi to discontinue
payment on all notes until the Federal
audit now under way is complete. In
the event Of any insolvency being dis
covered, it was said, this would assure
equitable distribution Of funds on hand
Mr.. Allen said that he did not feel
at liberty to discuss the interview.
II shall have further conference
with Federal officials tomorrow morn
ing" he said
II have been wanting this talk with
Mr.. Ponzi for several days and have
had some half appointments. Mr..
Ponzi seemed too busy to sec me, and
/ am glad he got over here this after
noon"
State Must Take Action
the investigation might warrant would
come through the Office of District
Attorney Pelletier The latter has
already issued a statement virtually
withdrawing from the case Federal
officials say emphatically that action,
II any is necessary, will be up to the
state.
The statement issued by Attorney
General Allen follows:
"Mr. Ponzi in his statement in this
office did not claim that coupons had
been purchased from the postoflice in
such small quantities as could be
bought over the counter, but he
claimed lie had agents in Europe in q
position to buy those coupons in any
amount desired from officials connected
with foreign governments through ar
rangements or agreements which have
been made by his representatives with
the officials.
Gas a result Of this, he claims his
agents are in a position to obtain the
reply coupons from countries where
clated In sufi cient quantities to meet
all amounts that have been depos ted
with him, and that his agents in other
countries, where the exchange rate is
substantially normal, redeem coupons
through officials of those governments.
who have agreements with his repre-
sentatives.
Ponzi Could Explain
Mr.. Ponzi. if he saw fit. could very
easily furnish d means of Determining
without. delay, the fullest truth to
establish whether he has been CON
ducting negotiations on large scale
IN the purchase and REDEMPTION of
these coupons. Up to the present he
refuses 70 disclose through whom the
baslness has been conducted either in
New York or Europe. He further
stated to me that he had been in cor
respondence with officials in Europe.
but had destroyed the correspondence,
at least in part. He says his papers
are deposited in a number of safe de
posit vaults
Edwin l.. i'ride, who is auditing
District Attorneys office. said the
study of the books had as yet revealed
nothing criminal.
Ponzi's reply to the McMasters at
tack follows:
AS far as being nsolvent, abso-
lutely deny the allegation. Since the
responsibility Of deciding this issue is
in the hands of Mr.. Pride, the auditor
appointed by the United States authori-
ties, feel that any statement coming
from any other source than from
Mr.. Pride should be taken entirely for
what it may be worth There is de-
sire to embarrass the Investigators, a
desire to turn public opinion against
me. desire on the part of others to
eventually cover something which a
favorable investigation of nv saffairs
might disclose to their detriment 1t
IS further apparent that there is moth
ing but malice back of the statements
mat AR. McMasters and others have
so widely published.
81 doubt very much whether anv
other individual or groun Of ,nd;.
viduals could have faced for five DAYS