Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1920-08-13
PONz| SURRENDERS.
ON FEDERAL CHARGE
AND AWAITS TRIAL.
1900 INVESTORS INTRI STED r.
10 - MILLION DOLLARS 10
II>tS, ,lEI. OFFICIALS say
DEBTS RUN into MILLIONS.
UrrlirrS Iir T. lmiblr H. Meet Obli
gaii0ns Sinrr liDStOn Bank Or.
drrrd Closed: Iiail u
Furnished

BOSTON. I,ug. i..--Sonr forty
thou md investors iniruSird n total
,aiiously estimated nj from Sl5.00n..
NgO a. SO. n.0DO. .O0l H. Charles p0nif in
u NANCY making srlIemr which postal
1iIiri I, today DECLARED ~ be absolute.
~ impos .iblc oi fulliiIlmcni.
I'onsi 'urrcndcrd to the federal au.
ihUrii.c> this afternoon. explaining he
Ms unahlr iO meet his obligations he.
c1uSr nf the closing yesterday Of the
Iirro,Gr Tut company. where ths
hIlk e hi. funds were drpo,iird.
Tie WIS arrested charged with having
ur Il the mails To- dcfinud. nrrniguri
and nold IN bond of $4,000 fur q hear.
ing AuIust 10.
Morris lludnic. real estate man.
furnished the surety.
Arrested on second Charge
Meanwhile u warrant charging Pom.
- with larceny had been obtained 10y
%, state polio" ~ municipal court rnd
upon H. wing tho federal building ppn.
II WAS rear"stcd and held by the city
court IN $1,000 hail. Ter appearance
August % .--l,udnick again went on
orzi's bond and the latter was rcleas.
ci
Developments followed thicl, and
fast today ~ rongi was being az.
raigned before tinted States com.
missioner. Edwin l.. Pride. who u "X.
amining the books ~ the Security EE.
change company fur the federal ru.
thorities. announced that II had already
been shown that rnnzi owed 5000, nnn.
Liabilities Are Heavy
State attorney general Allen. who N
conducting n separate Investigation de
tlarcd Ponzi's liabilities would run iu.
to millions
State bank examiner Joseph Allen l..
sued ST. ut declaring the capt
tai of IN, - Trust company, ~
which POM. r'i.l yesterday was di.
rector was seriously impaired and
probably wiped out State treasurer
Fred J.. Burrcll attacked the hank
commissioner for not having given him
opportunity Ia withdraw state funds
before the Hanover bank was closed
and Governor Coolidge demanded that
Bnrrel will make known how much
state money had been tied up 10y clos.
ing Of the trust company
Iiurrcl notified the governor that
~. stat. deposit was Si25.000.
punzis field appears 90 have included
New England and New Jersey. tn"
line that formed daily IN ~ Alley. 1T
the rear ~ his office. appears to hat"
been far from representative ~ his
'licrtolr This was made up largely ~
| foreigners.
Those Who "I,t"
Anxious Inquiries NJ newspaper Off
cvs aud fvVcrish conversations IN down
| town restaurants Indicated that the
prupri,tors of small businesses. prufcs'
siuunl men and women. clerks nnl
-. Ia.
| thousands. arr,ut,i the Init ~ "nfiy
| percent" profit IN furtvfiyo davs
The mystery of p0nzi's methods add
,d to the ntirariiycn'ss ~ his promises
lt was said the possibilities ~ profit
rllv exchanging American dollars fuf
! French francs and Francs fur italian
\ Dor" nud the latter tur something else
I w'ru'i plausible enough. without b,
! 'l.ar comprehension uf iuvt how the
| hing worked uut Among the ainny
| iuE disclosures was that Tho bulk II
| fuuZiS millions were gathered IN after
| the pu~t uffirr department h1d begun
its Investigate last February
tu ~ .ussiug N, i'unA ,t.r. Chiri
| T." Ufirr tu-i"rtr iid T. Musl,,
| slid That 80 ~ ~ thrir Investigations
hid shown. l'uizi hrd never dime as,
! business iu International reply coupon.
| "a ,aid hr hld warmed hundreds II
| pUupi" against ruuzi when Inquiries bc
| gln a. rum" in last February. that ~
| mln 90 set 'l men could manipulate
ur speculate in international reply ruG
p"nH iu ANY fI,h mannrr as thry al
lcrpl l'una had explained o. thru
We have obtained conclusive c,i
drnco that there hus hrrn nn ahnuIma
issue 80 redemption uf International rr
/ p'v Cuup,us. while rn the other hand
loo suur countries. IN" use II ,uupun'
hns ls'u greatly ,urtHilrd Go prevent
| this NtF, scheme sIid Nj Musly.