Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-08-13
new ENGLAND ].
. AWAITS ACTION
IN PONl CASE
Examination Of Books Being
Pushed to Determine How
Much He Owes.

Meyers and Charles c. Meyers de-
scribed as secretary and manager, re-
spectively, Of the Old Colony Exchange
company, were arrested today charg-
ed with conspiracy to defraud as a
result of the investigation Of sensa-
donal financial methods which start
cd with the inquiry into operations
OF the Securities Exchange company,
Of which Charles PonM was the lead
ing figure. 4.
The Old Coloney Foreign Exchange
company recently began business with
Offices in this city and branches in
many parts Of New England. It fol-
lowed the lead Of Ponzi in promising
unusual returns on notes, the offer in
this case being 100 per cent in six
months. ~ ..a..,sls{ /.
Ponzi, who was arrested yesterday
by federal authorities charged with
using the mails in scheme to defrand
and later was taken into custody by
state authorities and released on bail.
was surrendered by his bondsman,
Morris Rudinck today. Rtdinck had
given bonds Of $2s.00o in the federal
action and $10,00O in the state court
of United States Marshal Duane. s.
4: Fonzi.: aspofnpanied by one Of his
counsel. reached the federal building
about $3.50 pi IA. Rudad0k had: with
drawn his aireties fotA bnSihess rea-
Sons s III II. III
6 1. ~ blanket warraast Including sfifty'
counts Of sslsrceny against Ponzi was
'issned by Judge Bennett in the nnu-
nicipal court today The total amount
involved in $4,000. inspectors went to
the federal building to serve the war
rant on Ponzi who wasin the custody
OF the United States marshal.
y A third officer Of the Old Colony
Foreign Exchange company, Charles
S. Brightwell. the president, was ar
rested on a{charge similar to that pre-
ferred against the others
Boston, Mass. Aug. 13.-All New
England awaited with keenest interest
today further developments in con-
nection with the crash of Charles
Ponzi's dream castle of finance to the
building Of which 10000 investors
are alleged to have contributed from
81 100000 to $40, 200, 900 and federal,
fvestigations with a view to disclosing
every ramification Of the affair. I.
The financial district Of the city
was especially concerned lest the in-t
vestigation under way discloses oper-t
ations that would involve institutions
other than the Hanover Trust com
pany. which was Ponzi's largest de-
positary. zag N, %
Il, Todays sftuas5on.
Other elements Of the situation to-
day were: s,S ,g
Ponzi was free under bail OF 1885,
900, of which $4,000 was for his ap-,
tpearance before the fedrai govern
3ment onAa charge Of using the mails
ina scheme to defraud, and $4,000
for his appearance before the munich
80 - 1n~
charge. l5. s,
pearance before, the federal govern
Edwin II Pride, auditor of the fed
era1 audttor for the federal authori.
ties OF Ponzi's accounts, was nearing
completion Of his Insulation Of the,
ilatter.s liabilities. %. II h. ,ti I:
u no Examine Policemen. y
s. Superintendent OF Police Crowley
police department to ascertain the
extent to which members OF the force
have invested with Ponzi or otherwise
have been connected with his affairs.
y Examiners from the bank commis-
Ssioners Office rushed their work to
determine the exact extent to- which
the Hanover. Trust company was n In,
III Henry II. Chemielinski. president
of the Hanover Trust company, de-
,clared the institution was solvent
and announced that every depositor
would get back dollar for dollar with
interest. Az: state Treasurer Burrell
has announced 4 that the common
wealth has $lz6.0 20 dep osited in the
Ponxi denied rumors that he In
tended to leave the city for . I va
!. warrants charging conspiracy to]