New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-12
Boston Financial Wizard
Says He Suffered for
Another's Wrongdoing
and Demands Fair PLAY
Fear of Deportation
His Chief Worry
Trust Company Accused
of Illegal Acts; Official
Insists That 1t Is Solvent


the postal coupon ''financier," whose
calm manner and winning smile
were making him famous, wept to-
day as he confessed himself to be the
man sentenced in 1908 to three
year prison term for forgery in
Montreal and to another two-year
term in 1911, served in Atlanta, Ga,
for smuggling five Italians into this
country over the Canadian border.
Although this sensation was fol
lowed soon after by the closing of
the Hanover Trust Company, in
which Ponzi has more than a fourth
interest and through which he has
done most of his business, the "wiz-
ards chief concern seemed to be
over his young wife. He cried at
the thought of having her learn of
his two terms in prison, although he
insists he served the Montreal sem
tence to shield his employer, N.
Zarossi because of the latter's four
little children.
Despite to-day's events, the Italian
declared his assets to be more than
sufficient to meet all his notes, in which
connection he again bitterly scored the
officials for tying up his money! VIII CHI
he said prevented him from paying
everybody off at once.
Issues Fourth Statement
This evening he issued another state
ment, his fourth during the day in
connection with the closing of the Han
over Trust Company. He said, in part:
II believe that this action by Bank
Commissioner Allen is merely another
attempt on his part to prevent me from
gaining possession of 81 500 900 which
have there. What merchant or banker
could stand the strain of being COM
PEELED by the authorities to meet OBJ
legations before they became due?
am expected to pay my notes and at
the same time deprived Of my liquid
assets"
Ponzi resigned from the board Of
directors of the Hanover Trust Com
pany following the action of the Bank
Commissioner. The posting of the no.
tee announcing the stopping caused
quite q furry this afternoon. The
notice read briefly:
Under authority vested in me by
law. | hereby take possession of the
property and business of the Hanover
Trust Company"
The commissioner explained his &C
ton as follows:
THE reason for closing the bank
was, TO a large degree, because of the
condition Of its loans. Not only did
lind the loans were excessive and
beyond the legal limit, but found also
many loans that are either bad or of
very doubtful value.
Violation of Law Charged
THE Hanover Trust Company, acting
contrary to law and against the direc-
ton OF the Commissioner of Banks,
has given Ponzi, either Ponzi himself
or his agents. almost 5000 of the
certificates of deposit l read these
officials the statute covering the law
on the matter"
Bank officials declare the bank to
lnsk is president of the institution
and William s. McNary is vice-presi-
dent and chairman of the board Of
directors McNary explained that ponzi
Iad been recommended by prominent
itallan citizens, and that he was in
vestlgated at the time he took an in
lereSt in the bank and nothing was dis
covered to his detriment.
fonzi fears deportation. He so ex-
pressed himself to-day, and evidently
tnere IS some ground for his misgiv-
iIngs. The Immigration Commissioner
mere had this to say to-night:
If Ponzi committed crime within
nve years of the time he came into
lhls country he is liable to deporta-
uon." He added that this matter will
DC taken up when the investigation Of
MS affairs now in progress is complete.
Ponzi Carries an Automatic
Meantime the wizard" is taking ex
ueme precautions against personal at
tacks. He has number Of guards sta
uoned about his newly acquired Lex
lngton mansion, and he is carrying an
automatic revolver. which he showed on
TWO or three occasions to-day.
There was little excitement outside
Ponzi's Office to-day. The Office is
closed and the notice placed on the
door by Ponzi's employees to the effect
mat 1t will reopen Saturday is still
there
At the office of Attorney General Al
len at the State House appeared siz-
able number Of Ponzi note-holders,
VINO responded to that officials invi-
s"'Ion 10 come and make themselves
nnown to aid in the checking up of
ronzi's accounts. The investigation of
MS affairs is still going on and Federal
auditor Edwin l.. Pride is still at
work on the "Wizard's" records.
The Italian continues as bitter as
ever against the officials and he &C
cuses them Of "trickery" in the alleged
Disappearance of $275,O00 from his &C
count at a Manchester, N. H., bank.
fonzi asserts the account was trans
leTred to another at the behest of the
ohcials, who deny his claim.
However, do not need it now" is
fonzi's declaration; dit will have to
Dc produced some time"
Report Expected This Week
"A report on Ponzi's financial condi-
non may be issued before the end of
me week 1t is stated, however, that
s =, OF tho cash in his hands is not in
sae banks. A few days ago he took a
sis'tov to closet and showed him a
Scrsss Butt case which he threw open
oefagee sstpn;shed eyes. Tho case was
tCnntInued m nxca II