Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-22
P0Nz| TURNS OVER
PART OF MILLIONS;
TELLS ABOUT REST
Counsel AIIege Effort of Re-
ceivers to BroWbeat
Their Client.
By the Associated Press.

| By the Associated Press
| BOSTON. August 21.-Charles Ponzi
turned over to federal receivers to-
day part of what remains from the
millions Of dollars which he received
from investors in his discredited
financial operations and went on the
witness stand to tell about the rest.
Little had been elected as to his as
sets. however, when the receivers
| nearing was adjourned until Tuesday
next.
Ponzi showed irritation when coun-
sci Tor the receiver asked whether he
mad told the truth when he informed
Attorney General J. Watson Allen of
Massachusetts that he had between
six and eight millions in cash. For
time the hearing was stormy, the
receivers charging that Ponzi was
trying to deceive them and Ponzi's
counsel retorting with the assertion
that their client was being brow
beaten.
Did Not Exceed Million.
The checks and securities which
Ponzi handed over to the receivers,
as announced in the courtroom today,
did not greatly exceed a million dol
lars Edwin L. Pride. the account
audit for the federal authorities,
again estimated Ponzi's liabilities at
, 100000. Ponzi said he had addi-
tional assets, but did not indicate
their amount.
The only business of which Pride
testified, was the issuing of notes
for the amount Of the investment,
plus SO per cent, and the payment of
early notes by the receipts from
later ones. There was nothing in
Ponzis books. he said. to indicate
any business in international postal
reply coupons such as Ponzi claimed
TO be the basis of tremendous profits.
Ready to Make Full Disclosure.
Ponzi began his testimony with
statement that he was ready to make
full disclosures in order that the re-
eeivers might proceed with their
assets for the benefit of his creditors
He had been carried through minor
questions when Robert G. Dodge,
| counsel for the receivers, raised the
| question of the truthfulness of his
statements to the attorney general
Ponzi replied with some heat that
the present hearing was concerned
with assets, not his statements to the
attorney general. Unless questions
were confined to the assets, he said,
he would assist the receivers no fur
Their.
Daniel V. McIsaacs, counsel for
Ponzi, supported his clients objec-
lions and asserted an effort was be-
ing made to browbeat him.
IF the receivers will be fair We
intend to help them in every way,
but this elimination does not point
that way" he declared.
Counsel Received Fees,
It was brought out that McIsaacs
and Daniel H. Coakley of Ponzi's
counsel, had received fees of $4,000
each McIsaacs explained that the
Hanover Trust Company. in which
Ponzi kept his principal account, had
Ponzi.
Ponzi's replies to questions by coun-
sci Tor the receivers indicated ig-
norance of the conduct of his business
affairs He did not know the names
Of his agents, was not familiar with
his accounts in several banks and
was in doubt how many persons were
authorized to draw checks in his
name. He said he left most of these
things to Miss Lucy Nell, the
eighteen-year-old girl who was man
ager of his office
Mr.. Dodge drew from Ponzi a state
ment of certain holdings not previous
ly of record by the receivers, among
them 1000 shares of the Hanover
Trust Company, the bank which COL
lapsed when his business went to
the wall Among large payrnenta
which he had made recently he mem
toned $4,000 in settlement of the
claim of Joseph Daniels, a furniture
dealer. who because he loaned .Tonzi
5000 at the outset Of his career, sued
MIN Tor $1,OO0,OO0 as a partners share,