Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-08-13
Amazing Operations
Continued from. PAGE one)

Continued from. Page one)
Earlier n reply TO speclie inquiries.
Inspector Moseby said:
Our attention was firss called 10
PonEs operations last February
when inquiries began coming into the
ofiice from investors ana prospective
investors. and an INVESTIGATION was
Immediately undertaken. Since that
time We have been inquiring N Eu-
rope and elsewhere.
AS a result Of this Investigation
We have OBTAINED conclusive evidence
that there has been no abnormal IS
sue or redemption If International re
ply coupons. while On the other hand
IN some countries the use of coupons
mas been greatly curtaiIed 10 prevent
this very scheme which no DOUBT has
reached the ears of Postal ofYic,als II,
MANY foreign countries. There il no
means Sy which a man can nanipul-
are international repiy coupons.
PonZi's claim that ne has made mil
mons n this way is simply a sfupen-
dons fraud with nothing upon which
Il can De based.
postai Coupons q Mysh
me entire issue and REDEMPTION Of
International reply coupons through
eut the postal union for the naxr So
years would not ayxrexate Fsan oee
Pcnz; could no, have hant,a1 rss ,,,I-
liohs OF them that would hare been
necessary 10 make the fortune ne
claimed 20 have amRssed n rhe mast
few months without the knowledge >,
the offcials OF the governments ana ,f
the postal union
some countries. fearing speculation
Or manipulation Of the coupons dis
continued their issuance or redenp,ion
months ago some Of them. particular
~ Italy. prior 20 tae time xhe,, po.z,
claims 20 nave started his business
L would De foolish for Italy q -
deem coupons al the great difference
n me rate ef exchange for when she
would nave 70 stand 70 lose the d,f-
terence when the time came 20 s4rs1e
accounts
Postmaster Advised
soon after cur investigation was
stsrted Ponzi was advised By ierrer
mat coupons would not De redeemed N
tnls country except for legitimate most,
age purposes and postrnasters through
our the country were instructed 10, :,
reueen them. The best evidence tina.
ne iid not deal in coupons IN foreign
countries Is the fact that ne mas never
produced foreign customers az far
esgn coupons
The most amazing thing. and mo
thing which I am not able 70 under
STAND. IS why people invested their
money with PonE. ! can only al
tribute I TO ais personaIify-t,aev IN
vested n the man and not the bust
ness We warned hundreds Of oeo,la
against MIN. Many If them headed
ne warning out undeubtesfly there
were many who gave aim their money
notwithstanding
People Refused 10 Believe
We found I difficult - talk With
some people. thev were 80 impressed
ana believed SO strongly mat ne was
DONG what ne SAID ne vas cong.
One OF PoHzIs attractive features
was The easy manner IN which he talk
- 80 AiAAa-hfiS tflStSEtd III - nQH0HEaS
oT even thousands. He simply 1az-
zied the people
he appealed TO the gambling shirt
Of the people b" the quick action on
me Investments. When lie started
eut ne prom sed 90 per cent. IN 90
days bur he paid il IN - davs with
The result that many -elnv@s1ed their
prlnclp2I ana their winnings
Depended On Word Of Mouth
PonZi lid not nse TIE mails as
openly as is often the case n schemes
which come tothe attention of the de-
par-nenL He started business IN a
small way, depending upon reinvest-
nents from mis- customers and upon
me word that would be 7sssed from
one person 10 another
He did not dare 20 advertise IN the
newspapers and We did not want 70