New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-17
Hitch in Bail
Keeps Ponzii in
County Prison
of Spectator I'm
able to Get Promise
That He Will Not Be Ar
rested Again if Freed
$5,OOO,OO Debts Found
More Than 5000 Claims,
Exceeding 100000,
Examined by Officials
Special Dispatch to The Tribune


BOSTON, Aug. 49,. Charles Ponzi,
lately hailed as Financial wizard"
and whose speculations led to his
arrest on charges of fraud, spent to-
day and tonight in Jail at East Cam
bridge, although friends and counsel
had arranged for new bondsman to
supersede Morris Rudnick, who with
drew as his security.
The hitch in the new bail arrange
ments was due to the inability Of
counsel for Ponzi to arrive at def
rite understanding with Attorney Gen
eral J. Weston Allen of Massachusetts,
their client had again been comfort
ably bailed on the present charge Of
fiftythrce counts, he would not again
be rcarrested and additional bail de-
mandcd of him.
If Ponzi remains in the county Jail,
where he is now, he will presumably
go to trial in the Federal Court with
out passing into the hands of the state
authorities. In the event Of conviction
of the charge of using the mails to de-
fraud he might be given a fve-year
sentence, and eventually be released
after public interest in his case had
waned and after state officials who
have prepared charges against him had
passed out of office.
New Warrant Issued
A warrant for another arrest in con-
nection with the Ponzi smash was
granted in the Municipal Court to- day
on application of Assistant Attorney
General Hurwitz. The name in the
warrant was kept kept, but the arrest
was expected momentarily.
The only information Mr.. Hurwitz
would divulge was that the warrant
was for some one besides Ponzi.
The next person expected to be
scooped up in the net of the authori-
ties is understood to be one of Ponzi's
agents. This man is alleged to have
been in the employ of the fallen money
king from the time he first opened his
doors for business.
Edwin L. Pride, Federal auditor of
Ponzis books, said to- day that his in
vestigation had already revealed liabili-
ties Of $5000,000, not counting the as
per cent interest promised by the get
richquick" inancier. The S5,OO0,000
represents merely the principal of the
loans made to Ponzi.
More than five thousand Ponzi claims
tctaling $2,121 ,S9S.07, have been pre-
sentcd to Attorney General Allen for
examination, according to figures an
nounced. 1t was revealed that the aver
age Ponzi note submitted was around
$435. One for $4,000, another for
$4,000 and one for $500 were among
those submitted.
To- days mail alone brought an addi
tfcfal thousand claims.
Meanwhile, Ponzi's liabilities con.
tinue to pile up More and more people
are reporting at the Office Of the Attor-
ney General at the State House, pre-
senting Ponzl notes for thousands u
dollars.
Mrs. Ponzi is said to be without
funds, although state and Federal au-
tholties are searching for concealed
assets.
There is plenty Of talk to the effect
that Ponzi "has a cool million sailed
away" Both Ponzi and his wife deny
the assertion.
Ponzi Family Unhappy
The whole Ponzi affair is leaving be
hind trail of unhappness, not only
among noteholdcrs, but in Ponzi's owr
family. His aged mother is in secSu
sion at her sons Lexington mansion
his wife presents a heart broken ap
pearance, and Ponzi himself, putting
stolidly at pipe-cigarettes being ia
boo in the East Cambridge Jail.
reported by his jailers to be very
different Ponzi from the gay, jaunty
debonair Financial wizard" who no
many days ago airily trod the street:
Of Boston followed by cheering
throng.
Federal Auditor Pride believes tina
Mrs. Ponzi has money deposited some
where and that other assets have beer
concealed by friends of Ponzi. All O.
this the defense denies stoutly.
Daniel H. Coakley and Daniel V
Mclsaac, counsel for Ponzi, started
J ca lN to-day To Got t--nnthnr onoun l