Bisbee daily review., 1920-08-14
ARREST BOSTON
 BANK OFFICERS
(CoyTINUED FROM PAGE oNE>

(CONTINUED FROM PAGE ONE) and treasurer of the concern; Ray mond Meyers, office manager, and Fred Meyers, sales agent. They pleaded not guilty.
 Huge Frauds Charged
 That the activities of this company might have rivalled in extent the dealings of Ponzi's Securities Ex- change company, was intimated by Albert Hurwitz, assistant district at torney, when he told the court the amount involved in its transactions probably was hundreds of thousands of dollars. The three men will be given hearing on August 24.
 Samuel Zorn, said to have been em- was arrested at his home tonight on the same charge as three officers of the concern. No bail was fixed and he was locked up for the night.
 Further criminal proceedings were taken against Ponzi today. Tn the , municipal court a blanket warrant was issued charging him with larceny III OO SOuhIo, lOtdiih6 3St,VVV. AS municipal court charges were held in , abeyance. as Ponzi went to jail on the . federal warrants.
 , Further bankruptcy proceedings in
 which partners of Ponzi were men, toned, were brought in federal court. The three petitioners were holders , of Ponzis notes for s2625. They ! asked that Ponzi and John S. Donde- [ [ TO of Merford and Guglielmo Bertal- : ltti of Parma, Italy named as part ; ners in the Securities Exchange Com } pany. be adjudged bankrupt. % Rumors were current tonight that further developments bearing on get
 rich" schemes might be expected in
 the near future but there was no hint
 as to their nature.
 Joseph C. Allen, state bank com
 missioner, said that he knew no foun-
 dations for reports that Ponzi's crash might involve any banking institu-
 tions except the Hanover Trust com
 pany, which was closed. Ponzi was l a director in this bank, through f which he checked out millions of dol . lars.
 , MT. Allen made known today he
 had caused the state seal to be plac- ed on all the safe deposit boxes in
 the Hanover institution used by Pm zi or by officers or employees of the ! bank He said this was done as a
 precaution against the possible re- moyal of securities.
 State Treasurer F. J. Burrell re- , fused to make any statement regard
 ing the $125,000 of state funds on de- posit in the Hanover Trust Company. The arrest of officers of the Old , Colony Foreign Exchange company came after a frenzied run by note , holders upon the company's offices
 on Devonshire Street. One result
 of this run was an imperative notice
 served upon President Brightwell by
 the trustee of the building to vacate
 his quarters within an hour and a
 half Shortly afterward the offices
 were closed.
 More than 100 note holders were in
 the exchange company's outer office,
 
 = district attorney no payments on p notes would be made flor three CT v four days" Brightwell said later this I announcement was erroneous as far n as mention of the district attorney g was concerned. but that the company !. had decided to suspend payments g temporarily on advice of it's attorney. r The announcement brought loud P cries from the waiting crowd. f We want our money" several of
 them demanded.
 There was a rush toward the inner
 office. Guards struggled to keep
 them back. Threats were made , against Brightwell.
 I'll break his neck" one man shouted
 Finally the guards cleared the of.
 fices and the doors were locked The :, crowd remained in the hall and surg . ed against the doors until the glass . was broken. Through the broken doors some one announced that the company would z begin making payments at another - office.
 Its. d lie" man shouted. We . were there and they locked the of . fices up. We want our money" An hour later the Devonshire street :. office of the company were re-opened . and payment of principal on unmatur- ed notes was resumed. The notice
 to vacate came and again the offices
 were closed. A notice posted on the
 doors said further payments would be
 mads at another office beginning Mon ! day but no payments would be made tomorrow.
 Ponzis Debt Grows -' The total amount of Ponzi's liabli. : ties is still undetermined. Edwin L.. l. D,iJo ho ntidito, opnauoJ hx- coInr.I