New-York tribune., 1920-08-06
/ Ollzi Predicts I
Daily Business
OF $5,000,0OO
Expects to Sell Diamonds
Purchased i'll Italy as
One Branch of His New
$780, 100000 Company
May Start Bank Monday
Attack ON Financial Wizard
Fails to Shake Boston
Public's Faith i'm Him

BOSTON, Aug. 5.-Purchase of dia-
monds in Italy and their resale in
America will be one Of the "innumer-
able methods of making enormous
profits" on which Charles Ponzi is
planning to embark next. Ponzi an
nounccd to-day that he will launch a
new $l00,0O0,0O0 world wide bank and
commercial project at once, probably
next Monday. He said he expected to
receive $5,O00,000 a day from the pub
lie for investment until halt is
called"
Diamonds can be bought for about
500 lire carat in Italy. the equivalent
Of about S25," said Ponzi. "rhey are
worth about 5000 carat here. The
import duty is about SO per cent, max
ing them cost about $4 Ga carat"
The Italian declared he expected his
postal exchange business would be
merged into the new company, if con-
tinued at all.
of l hear of an undertaking which
needs additional capital | shall assign
an expert to investigate it," said Ponzi
"He will report its possibilities. If it
measures up | will furnish the needed
capital but always with the stipulation
that the control is turned over to me-
NptCuldloiS HONtiCu ABOUT III luc VI
cinity of the Ponzi Offices offering to
buy the "wizard's" notes at 10 per cent
discount. They found it poor picking
Ponzi said his debts have now been
reduced to less than $1,000, 600. He
asserted his ready assets are between
$7,000,000 and $4,000, 900.
To Pay Regular Dividends
Ponzi announces that the new con-
Germ, which will be known as the
"Charlcs Ponz Company" will pay reg
ular dividends of 6 or per cent a
year on the common stock, with extra
dividends of 25, 80, rs or loo per cent
a year according to earnings
The Italian still radiates every con-
fdence that the authorities will give
him a clean bill Of health at the con-
clusion of the audit now we'll along
toward completion.
Indications that attacks upon Ponzi's
postal exchange scheme, on which he
has paid so per cent profit every forty
five days to all investors since last
December, had failed utterly to shake
the publics confidence IN his solvency
were seen to-day, when mere hand
full Of noteholders appeared to demand
their money back. Where hundreds
have waited in line for the office to
open the last several mornings. there
We're only twenty seven to-day.
State Inquiry Proceeds
Governor Coolidge and his council
approved an appropriation of $4,000 to-
day to aid Attorney General Allen in
his Investigation, indicating that more
would be Forthcoming if required. The
Attorney General said he expected de-
velopments within twenty-four hours.
"The state investigation will now go
forward regardless of previous inter
ruptions," the state official said. Edwin
l.. Pride, Federal auditor, who is now
working on the books, yesterday re-
sented the suggestion that the state
give a man to cooperate with him.
Ponzi and four New York men, who
came here for the purpose, 1t has been
announced, Of financing the Italian
miracle man in mis- new 500, 100000
project, held a four-hour conference
to-day
Contrary to the general understand
ing, one of the New York visitors, AL
bert Falkenborg, who described him
self as an exporter and importer, de-
clared he and his associates came here
not to finance Ponzi but to endeavor
to interest him in financing PROPOSE
tion Of their own.
Has Automobile Scheme
Falkenborg explained that the plan
was to assemble a lowprccd auto
mobile which, he said, he could dis
pose. of in France at the rate of 1000
q month. This, he had assured his
associates, he could do if backing could
be procured.
The other men in the party were
John P. Caswell, president and
director IN the Bolivian Woo Company,