The Washington times., 1920-07-30
PONzRETURNS.
HALF MILLION.
Boston Coupon Wizards" or
flee Thronged-No One Turn
ed Away Disappointed.

BOSTON, July 30.-Half a million
dollars was poured back yesterday
into the hands OF customers who
have grown sceptical at tho offices
OF Charles Ponzi, postage stamp
king"
As early as 8 o'clock In the morn
ing crowds began to gather. and for
hours during the day thousands
jammed into the square about his
school street and Pi alley offices. 1t
was from the latter that the cash
was given out. and not claimant
was turned away disappointed.
When the doors closed soon after
o'clock this afternoon an exhausted
clerk announced to the crowd that
the office would be open again to-
morrow and more mountains OF cash
would be on hand with which to pay
of all others who desired to "cash"
the notes carrying the Ponzi sigma
ture and promising to pay 90 per
cent. profit in ninety days.
PAYS AHEAD OF PROMISE.
Two million dollars has been
turned back this week. according to
statement OF Miss Luci Nell.
Ponzi's private secretary. Much or
this, however. was paid on notes
issued As days ago, and represents
the returned principal and 90 per
cent. premium. Though Ponzi prom
ises to pay in 90 days. he invariably
has made his payments in 45 days.
The Old Colony Securities Ex-
change Company. alleged rival con-
cern, which has opened Offices In
Devonshire street and which also is
promising so per cent. profit in forty
Ave days, was allowed to continue
business after a conference between
it's president. John Brightwell. and
District Attorney Pelletier at the
latteTs office.
Brightwen declares that, while his
firm deals in postal exchanges, as
does Ponzi's firm. this is "only part
OF the business conducted" He says
his firm deals in "foreign goods
though the nature of the goods is
unknown.
WANTS MILLION AS SHARE.
Joseph Daniels. one of the early
investors in the Ponzi company,
made a new attempt to-day to tie up
Ponzis stock in various Boston con-
Germs. Daniels, who recently filed a
bill in equity against Ponzi. in an
amended motion declared he was
partner" with Ponzi. and he seeks
to obtain 81 10000 from Ponzi as his
share of the profits. Judge White
issued an order of notice to Ponzi on
the amendment, which is returnable
Tuesday. Ponzi, is asked to respond
on that date. L
United States District Attorney
Gallagher has announced that ne
would place an auditor on the books
of Ponzi. Mr.. Gallagher said: p.
"Our investigation may show that
Ponzi, dealer in international postal
and yet an offender of federal law:
He may be able to do all he says and
yet violate the law.
"As l told Ponzi, he Is either
benefactor deserving of the blessings
of the public or he should be in jail.
Ponzi agreed to that. 1t goes with
out saying that IL Ponzi IS solvent,
and has violated no federal statute
that the Government will give him
clean state. 1t also goes without say
ing that II he has violated the law
federal action will be taken against
him." =
EXPLAINS TRANSACTION.
In explaining his transaction to the
District Attorney today Ponzl saio'
THE first part of the TRANSACTION
is the conversion of American money
into QcDTeCldteu
matter what it is.
"The second part is the purchasing
Of the deprecated currency in inter-
national reply coupons.
'"The third part is the redemption
of those international reply coupons
in stamps in countries in Whlch the
currency is not deprecated.
"The fourth is the disposal or the
postage stamps
For the time being" he said
have ceased operations" Whether l
shall continue, to be sure, remains 10
be seen. There is no law forbidding
NV continuing. The United states
may make a ruling that
will hurt my business, but II 1 can
not GO on as l am I shall go on in
the usual manner of the ordinary
banker and broker. At the OUTSIDE
owe s3OOO.OOO. 1 could meet three
times that amount this minute. But
let me explain myself.
..The idea which you refer to as
the great idea and which really is
not great, came to me last August.
II came because / was thoroughly