The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-08-14
SHIP 0'DREAMS IS
HIGH AND DRY; Two
MORE P0Nz| CRASHES

snip tndC mas Deen pllOted Dy CnarieS
Ponzi, was high and dry on the rocks
today and Federal and state officials
made determined efforts to salvage
the cargo Of millions of dollars en-
trusted to Ponzi by thousands of in
vestors in his 80 per cent in three
months.
Bank Commissioner Joseps c. Allen
today took charge Of the affairs Of the
Polish Industrial association, conduct
ing a private bank at 81 Cross street,
in this city.
Henry H. Chmielinski, president Of
the Hanover Trust company, the chief
depository Of Ponzi, which was closed
last Wednesday by the commissioner,
is president Of the industrial associa-
ton.
Bank Commissioner Allen said that
the loans of the association were
either bad or Of doubtful value and
there was virtually no cash left.
He said its affairs were hopelessly
interviewer with those Of the Hanover
Trust company. The capital Of the as.
ISOLATION is $13,775 and it had deposits
of about $350,0O0.
Eats Breakfast In jail
Ponzi ate his breakfast in the
Middlesex county Jail in East Cam
bridge, a prisoner Of the United States
government, in default of $4,000
bonds.
Three officers OF the Old Colony
Foreign Exchange company, a rival
concern of Ponzfs Securities Exchange
company, had their morning meal in
the Charles street Jail, prisoners OF
the commonwealth, in default Of $780,
900 bonds each.
Samuel Zorn, said to be an employee
of the Old Colony Foreign Exchange
company, was at headquarters await
ing a hearing on a charge OF larceny
of $500 from persons unknown. He
also had spent the night in Jail.
Hold Company's President
The three officers of the company
who were held are Charles NJ. Bright
we'll, president and treasurer Of the
concern; Raymond Meyers, office
manager, and Fred Meyers, sales
agent The Meyers are brothers. The
men were held on technical charges
of larceny Of $500 from persons un-
known.
Upon representation Of Albert Hur-
witz, assistant attorney general, that
the company's transactions probably
would be shown to have amounted to
hundreds of thousands Of dollars; the
bonds were set at high figure.
Ponzi, whose bondsmen surrendered
him yesterday to the federal authori-
ties was confronted with the alter
native of remaining in federal custody
or, if he could find another bonds
man of being arrested again by the
commonwealth under a blanket war
rant issued in the municipal court
charging him with larceny in So
counts, totalling $4,000.
viii Arrest Him Again
1t was said that If PonZi could find
another bondsman and elected to face
re-arrest by the state a bond Of pro-
hibitive figures would be asked. The
authorities were said to be determined
that the sensational financier should
remain in custody, the principal rea-
son for this being a desire to preserve
for his creditors whatever assets he
may have and the fear that Ponzi
might seek to dissipate or transfer
them if out on bail
Edwin L. Pride, federal auditor of
Ponzis accounts. has placed the lat
ters known liabilities at $4,000, ,000,-
and Ponzi claimed assets of about
81, 1000. 900.
Mrs. Ponzi rea sserted her faith in
her husband. "He is honest" she
said, " and l will stay by him to the
end" The second of the two peti-
tions that have been filed to have
Ponzi adjudged bankrupt was pending
in the federal court today.
Organize Company on July 10
The Old Colony Foreign Exchange
company was organized July 10 under
deed of trust. with Brightwell, Ray.
mond Meyers and Funnar R. R. Lind
blad of Sweden as trustees. They of.
fered to pay 100 per cent in six
months on investments and claimed
to be dealing in foreign merchandise
Acknowledgement Allen said that he
knew the company had sent largs
sums abroad.
The office here was closed after a
frenzied run yesterday. the like OF
which was not seen in the widest
days of the run on Ponzi'S offices.
Doors and windows were smashed
threats We're made against Brightwell
and a detail of poice was required tC
handle the crowd when the announce
ment was made by the company that
payment on notes would be suspended
until Monday.
Ordered Out Of Building
Brightwell was ordered by the trus
! tees of the building on Devonshire
street, in which one Of the company;
offices was located, to vacate within
an hour and a half. Shortly after
ward the offices were closed and tho
arrests were made.
Dispatches from PHILADELPHIA Provi
dence and Fall River, Springfield
Lawrence, New Bedford and Haver
hill told of the closing in those cite:
of branch offices of the company OF
Investigations under way with view
to closing them.
| Brightwell was born in Atlanta
Ga, 43 years ago. and has been con
nected with various mining, gas ane
Oil ventures in several parts of the
country.