New-York tribune., 1920-08-15
Creditors Vow Vengeance

the disorder, but failed to erase the
frowns.
Creditors Vow Vengeance
The note holders after having their
paper recorded left the State House
vowing vengeance on the man who took
their money. The object of their wrath,
however, was safe from harm behind the
bars in the East Cambridge jail, smiling
rs of yore and living on the best in the
way of food that money could command.
Ponzi arose this morning at o'clock
after fine nights sleep and, to all
appearances, was not in the least dis
turbed by the fact that he spent the
night in jail instead of his home in Lex
lnston. He had a conference with his
lawyers, and apparently is confident of
his early release.
AN interesting outcome Of the case is
the formation Of note-holders' pro
tectlye committee, which proposes to
prosecute all Ponzi winners of the last
four months who do not give up their
prol-s tor the benefit Of all investors.
The committee also proposes to lend
all assistance possible in the task Of
unearthing Ponzi assets
stu another sidelight on the case
was the admission by Police Commits
sloner Curtis that as the result of
many rumors of the members of the
Ponce Department being involved in
the Fonzl affair, both in the way Of in
vestors and agents. a rigid investiga-
ton had been ordered. Curtis de-
eiared that any policeman found guilty
would get the limit CT punishment.
Every employee Of the department
has been furnished questlounaire,
which he must I'LL out and return. re-
curing him to state whether he bought
Ponzl notes, was asked to buy, or asked
others to buy, giving all names and
amount of money in each case.
The Polish Industrial Association
closed to-day was founded by Chmiel-
lnski and gave him his first step toward
prominent standing in the local financial
world. For years it was a big success,
and the Hanover Trust Company was
an outgrowth of this success. The
latter had It's birth near the site of the
Polish bank, only to outgrow the neigh
bornood and open its fine quarters in
the business district
The closing Of the private bank on the
heels Of that Of the trust company
caused more la easiness as TO the size
Of Points asse 8. The Investigation bv
the State Attorney General into Ponzl's
outstanding notes shows that these
notes already represent fully $1,000 900
with hundreds that have been received
IN the mail, Vt 90 be examined, doubt
less hundreds of others yet to be heard
from. not to mention the many who
still have faith in Ponzi, and others
who don't care about disclosing the
fact that they were SO gullible-
Liabilities Pile Up
AS this evidence Of tremendous LA
bilities piles up the creditors realize
trat the assets must develop into
large 4um, if they are to have any
thing more than their paper notes to
show for their confidence in the
wizard.
To-day was the fifth day the Attor-
rey Generals staff of assistants has
received noteholders. The Office in
vestigators are two days behind in
their examination of the mail The
staff Will work all day tomorrow
checking up information contained in
the letters from holdcls Of Ponz
notes. Letters are coming in at the
rate Of 1900 a day, while personal
calls easily run to 500 daily. Occasion
the Hrodt he made on Ponzi note.
One o. two have sent the cash by
mall
Because of what he believes to be
the Importance of the ease, the At
torney General has directed that the
office be kept open all day Sunday
to receive reports from Ponzis credit
ors. The officials say that it is i'm
possible at present to make any accur-
ate statement Of the number of
creditors who have been reported
either in person or by letter. The
number will certainly run we'll into the
thousands.
Developments of the day in con-
nection with the rival to Ponzi. which
went to the wall yesterday, centers
about the missing 100000. The
officials Of the company. the Old Colony
Foreign Exchange Company, withdrew
/ 100000 from Boston banks few days
before their arrest, and now refuse to
tell what was done with the money,
according to police headquarters. They
also have in their possession a check
for SIS, 900 said to be on the Hanover
Trust Company, transferring to one
Of the Old Colony Foreign Exchange
Company officials. now under arrest,
cOr1papu