Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-08-14
PONz|'S MONEY !
BEING SOUGHT
Wife of Frenzied Finance
King Believed to Have
Large Sum.
OWES $4,000, 900,
PART is MISSING
Believed to Have Been DsposItsd in|
Names Of others-Rival Concern os]
Ponzi Thrown Into Bankruptcy and
Three of Officers Are Under Arrssk|
-Ponzi spends Night In jail Be-
cause Of Failure to Furnish sonds.|
By Associated Press.

Boston, Aug. 14.-Bank Commis./ |
slsner Joseph c. Allen today took |
charge Of the affairs Of the PolishI
Industrial Association. CONDUCTING 81
private bank at 81 Cross street. In !
this city. Henry II. Chmielinslxi.
president Of the Hanover Trust Cons
pany, the chief depository OF CharlesI
Ponzi. which was closed last Wed-1
nesday by the commissioner, is pres-
ident of the industrial association.
Bank Commissioner Allen said that
the loans Of the association wer0I
either bad or Of doubtful value ana
there was virtually no cash left. HoI
said it's affairs were hopelessly in
terwoyen with those of the HanoverI
Trust Company. The capital Of ,theI
association is s13,775 and # had de-
posits of about $35o,000.
An involuntary petition in bank
ruptcy directed against three officers
of the Old Colony Foreign Exchanges
today.
Ponzi in Jail.
AT the same time another petition
for the appointment of a receiver for
Ponzi and his Securities Exchange
Company was filed. This action Wa
taken by three creditors who. earlier
In the week, started bankruptcy pro-
ceedlngs. A hearing was ordered for
next Tuesday.
Ponzi ate his breakfast In the
Middlesex county jail in East Cam.
bridge, a prisoner OF the United
States government in default OF s25.-
600 bonds.
The three officers Of thsspld Col
ony Foreign Exchange Cbmpany. sc
rival concern OF Ponzfs Securities
Exchange Company, had their morn. q
ing meal in the Charles street iaiIs
prisoners Of the commonwealth. IN
default Of $4,000 bonds each.
Ponxi Owes $4,000, 900.
Edwin L. Pride. federal auditor d.
Ponzfs accounts. has placed the lat
ter's known liabilities at $4,000. 900
and Ponzi claimed assets OF about
$4,00O.00o. In this connection. Mr..
Pride said:
7 aH inclined to believe that :
great deal Of money collected hv
ronzi and his agents has been dee
posted In the names Of others. The.
result-of a rigorous examina tion of
Ponzis affairs wiz sbeak TOR them.
selves"
Referring to the possible transfer
OF large sums by Ponzi to his wtfa
Mr.. Pride said:
-
It can be taken away from her
her. = =
Ponzi withhsld from hi. wife s.
news OF his surrender by his bonds-
men. He telephoned to her befora
isolng to Jail that he was remaininr
IN Boston during the night to =
ovef ms books with an auditor. Mr.
ponzi reasserted her faith in her
husband.
He is honest" she said, aan6 y
VIII stay by him to tho end.
To Keep Him ia Jail.
men Ponzi's bondsman wfthdrew
nus oond and surrendered the little
Italian TO the authorities because he
reared his family and friends might
not understand his action. ponx,
walked into the federal building, only
to be met with the Information. that
Judge Bennett, in the municipal court.
had issued a blanket warrant With
hfty-three counts charging larconv
Of s24.220. It was said that whom
Ponzt is brought into court again the
bail will be placed so high he can MT
be released.
Still Smiles and Talks.
Ponzi still smiled. And always his
love of publicity drives him to the
newspapermen. =,
Turnout his conversation there Is
no intimation that Ponzi is looking
forward to prison term-far from
it.
"This court action gives me plenty
Of time to check up my liabilities
and assets correctly" he said. "As
soon as that is done will call In all
my notes. The arrest means moth
ing; it was voluntary. When / have
shown enough assets to cover my
debts the charge Of using the mails
to defraud will evaporate in thin air.
In a couple Of weeks I will pay all
my notes"
The history of the Old Colony For
eign Exchange Company has been
even more spectacular than that OF
Ponzi. Starting two weeks ago with
a capital Of $500, the promoters have
taken in hundreds of thousands OF
dollars. The president of the conn
pany admitted to newspapermen to-
day that not dollars worth of
business had been done in EuropeS
yet.
1t was said that several others
would be arrested in connection with
the alleged swindles.