Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-08-25
.PONz| TO PAY LESS Than
FIFTY CENTS ON DOLLAR
Gct-Rich-Quick Schcmcr Tells OF
Assets at Receivers Hearing
in BOSton.
LIE PASSED SEVERAL TIMES
Wizard Declares Liabilities OF ST.
100000 Credited to Him Arc I'm
Error-Claims Solvcncy With
Plenty to Absorb Debts.
IRY Associated. Hrrssl


BOSTON, August PA payment of
less than so cents on the dollar to
the creditors OF Charles Ponzis get
rich-quick scheme, If official estimates
of his liabilities are correct. was in
dictated by his statement of assets ut
the receivers hearing today
Assuring the Federal receivers that
he had disclosed all he knew. Ponzi
told of assets which Robert c.. Dodge.
counsel for the receivers. declared
were mot worth anywhere near
$4,000. 900" The official estimate of
his liabilities. made after an audit OF
his accounts. stands at $1,000, 900.
Ponzi said he thought this was an
error. He claimed that he was sol
vent and had nearly $4,000, 900 of as
sets TO meet his liabilities, which Me
set at 100000.
Hearing Stormy Ono.
The hearing was a stormy one at
times. Daniel II. Coaklcy. counsel for
Ponzi, surrendered 10 the receivers,
to assist in meeting creditors claims.
checks for $4,000 each. which had
been given to him and to Daniel V.
McIsaac. associate counsel, as retain
ing fees. He said that when he took
Il
millionaire, but now he wanted every
thinS 10 go to the creditors. He
called upon the receivers and their
counsel to join with him in working
without fee, but his challenge was
not accepted.
Edward a. Thurston, one OF the re-
ceivers, remarked:
IF You thought this man had
lnt1 1oSt
anybody thinks you would have only
got $4,000"
You are liar when you suggest
anything like that" exclaimed Mr.
Coaklcy. jumping to his feet.
The lie was passed three times,
without retort by the receiver ex-
cept Thank YOU"
Loans to Police omccrs.
Ponzi told of loans OF $4,000 each
TO Henry Chmielinsk!, president. and
William S. McNary. treasurer. of the
Hanover Trust Company, which was
Ponzfs principal depository, and
which went to the wall with his col
lapse. His announcement that he
had loaned $4,000 to Daniel p. Des-
mond, treasurer OF the Lawrence
Trust Company. OF Lawrence. was fol-
lowed by Dcsmond's resignation later
In the day. Ponzi said he had made
loans OF several hundred dollars to
the chief OF police of Sharon and to
John y. Ray. lieutenant of police of
Somerville.
Showing Ponzi stubs for six checks
OF 100000 each, Mr.. Dodge asked him
who obtained the money, and for
what purpose. Ponzi replied that he
had withdrawn the money himself to
prevent attachments, and had depos-
lied II later In other banks, a little AT
time. These checks constitute the
only evidence so far disclosed at the
hearings OF Withdrawals by Ponzi
personally OF more than few thou
sand dollars.
The days when he was paying out
thousands Of dollars day at his Of
flee and boosting that he had sl3.
QUO, 600 In cash to meet S3,O0O,OOO in
claims were recalled by another check
stub. 1t bore the words. $4,000
against $1,000" Ponzi smilingly ex
planned TO the receivers that II rep
resented his side of bet the stakes
OF which were placed with Treasurer
alcNary. that forty-tivc days later he
would still be paying off his notes.
Ponzi smiled again when he an
swercd In the negative a question
whether he had any stock OF interna-
tional postal coupons. which he had
told investors formed the basis of his
new-found road to riches.
Miss Luci Nell. Is years old, who
since last April had been Ponzl's Of
nee manager, succeeded him on the
stand. She said she knew of no
source OF income for Ponzi except
what he received from investors.
When asked il she had ever seen In
the office any International reply
coupons. she said there had been zone
or two there, which we used as sam
pies for investors" She had trans
ferred money abroad only once or
twice. she testified, and she did not
know what the drafts were for.