Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-19
PONz| IS CHARGED
WITH MAIL FRAUD
Throng Gazes at Him as He
Gets Brief Respite From
Jail Cell.

BOSTON, August 10 (by the Asso
ciated Press).-Charles Ponzi, discred-
tied prophet of high finance which.
instead of large profits, has turned
into considerable losses the invest
merts of thousands of persons, run
ming into millions of dollars, again
was the object of the attention of
crowds today.
In a brief respite from the East
Cambridge Jail. where he has been a
prisoner since he surrendered himself
a week ago, he was taken before
federal commissioner here for q hear
ing on the charges that he used the
mails in pursuit Of a scheme to de-
fraud. The crowds. which had fallen
in behind the man when they thought
he was making millions for them, in
the heyday of his scheme, were again
out to see him in his fall, many Of
them investors in his supposed inter-
national postal exchange business.
But they had barely glance at the
changed figure, as Ponzi waived eX-
animation and was whisked out of the
courtroom and back to Jail, in de-
fault of $4,000 bonds. Trial was set
for September term of the federal dis
trict court.
Run on First State Bank.
A run on the First State Bank.
private institution in the north, and
doing business principally with mem
bers of the Italian colony, was con-
,tinued today. Depositors were said to
be alarmed by indefinite reports that
the bank was going to close and that
President Thomas Nutile had suf-
fered losses in the closing of the
Hanover Trust Company, which was
involved in the collapse of Charles
Ponzi.
Payment was begun at the usual
opening hour to a long line of claim
ants. President Nutile said he could
produce three times as much money as
was necessary to pay off the $4,000
Of deposits and that the report that
the bank was going to close was false.
He added that he had not been a
stakeholder in the Hanover Trust
Company for several months, a pub
lished list containing his name being
an old one.
$4,000 Is Located.
Attorney General Allen announced
today that $4,000 of the funds of the
Old Colony Foreign Exchange Com
pany had been located in a bank in
New York and that this brought the
ed for to $150,000. He estimated that
this represented 60 per cent of the
amount received by the company from
investors.
Returns of note holders in the Sc
curities Exchange Company, conduct
ed by Charles Ponzi, had reached to-
day a total of $4.2O0.0O0 this amount
including the so per cent profit prom
ised by Ponzi.
Arrested ON Fraud Charges.
George L. Ware of George L. Ware &
Co., dealers in investment securities,
with offices in this city, was arrested by
federal officers late today on a charge
of using the mails with fraudulent in
tent in connection with the advertising
of Mutual Divide, an oil stock He was
released in bail of $1,000 and will be
given hearing before United States
Commissioner Hayes tomorrow.
The complaint alleges that circulars
and literature which had been sent
through the mails set forth that Mutual
Divide had control of valuable oil
lands in Texas" from which had been
produced a high-grade oil in SUFFICIENT
quantities to pay dividends on each
share of the stock of the Mutual Divide. !"
The complaint said that "the said as
ISOLATION had no such property and said
association would not and could NOT
pay dividends on each share of stock of
the Mutual Divide