The Barre daily times. (Barre, Vt.) 1897-1959, 1920-08-13
KNOWN LIABILITIES
ALREADY $7,OOO,OOO
There Were Fears in BOs-
ton Financial District
That Other Bost IN
Banks Besides the Han
over Trust Co. Would Be
Found to Be Concerned.

Boston, Aug, f3.-Other arrests arr
expected within "a hours as the fur
ther result of the investigation o.
spectacular financing, which begar
when Charles Ponzi's Securities Ex
change Co. fell under suspicion.
With the matter Of Ponzi's affairs
pretty well in hand, Attorney Genera
j. Weston Allen has turned his at
tention to other money making enter
prises, which, it is claimed are con
ducted in violation of the law and to
the loss Of the too credulous investors
Patrons of the Old Colony Foreign
Exchange company, which offered loo
per cent in six months on notes and
which has continued in operation dur
,ing the investigation of Ponzi's affairs
started run on the companys office in
Devonshire street to-day. The crowd
became so large that police We're as
signed to keep the people in line,
Those who said they wanted their
money back and a few who wanted to
invest were requested to leave their
names and addresses and were told
that they would be notified when the
company would receive further sub
scriptions or would be ready TO refund.
A report spread among the crowd
that investors would be paid at a
branch Office of the company at 32
Oliver street and there was an immedi-
ate rush in that direction. The Oliver
street branch is in a room on the third
floor. Three clerks employed there
got word that the crowd was coming
and they locked the door and disap-
peared. Throngs remained around the
doorways of both these offices of the
company for hours.
The financial district of the city was
especially concerned lest the probe un-
der way disclose operations that would
involve institutions other than the
Hanover Trust Co., which was PonEi's
largest depositary. The Hanover com
pasy has BEEN closed by State Bank
Commissioner Allen, who announced
that its capital was seriously impaired
and probably wiped out.
Other elements OF the situation to-
day were,
Ponzi was free under bail of S35, 900,
Of which $4,000 was for his appear
snce before the federal government on
a charge>of using the mails in scheme
to defraud and $4,000 for his appear
ance before the municipal court on a
three-count larceny charge.
Edwin L. Pride, auditor of the fed
eral authorities of Ponzis accounts was
nearing the completion of his tabuls-
tion of the lstter's liabilities. Mr..
Pride has said that the liabilities al
ready shown are S7,000,OO0 Ponzi
claimed assets of not more tain $1,000
600.
Superintendent of Police Crowley
has ordered an investigation Of the
police department 20 ascertain the ex-
tent to which members Of the force
have invested with Ponzi or have 9th.
erwise connected with his affairs. The
investigation was ordered. after a con
ference between Mr.. Crowley, Police
Commissioner Curtis and Attorney
General Allen.
Examiners from the bank commits
sioner's office hurried their work to De
termine the exact extent to which the
Hanover Trust Co. was involved in
Ponzi's operations and what deposi-
tors in the institution NAV expect TO
receive.
Henry H. Chmielinski. president Of
the Hanover Trust Co, declared that
the Institution was solvent and an
nounoed that every depositor would
get back dollar for dollar with inter-
est State frasurer Burrell has an
nouneed that the commonwealth has
$4,000 deposited in the Hanover com
pany.
PonEi denied rumors that he intend /
ed 10 leave the city for = vacation. He /
said that II be had wanted 70 depart I
he would have done - before the
events Of yesterday.
Bank Commissioner Joseph G. Allen 1
aid to-day that 20 far a. be knows 4
there j. no foundation for reports that /
.thsr banking institutions hesiies the /
Hanover Trust a.. nav - involved ]
sith the Ponri collapse
Protecting PonEi's Nots Hoi5srS