New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-15
Furious Mob, Demanding
Life of the 'sWizard,''
Crowds Office Asking
for Return of Losses
Note Holders Form
Protective Society
Will Take Steps to Sue In
vestors Who Won Out:
Another Bank Is Closed

Special Dispatch to The Tribune
BOSTON, Aug. 14.~Large sums Of
money have been transferred by
Charles Ponzi to his wife, according to
the belief of Edwin L. Pride, the
auditor who has been going over
Ponzi's accounts for United States Dis
trict Attorney Gallagher. Mr.. Pride
also believes that a good part of the
millions collected by Ponzi and his
agents has been deposited in the names
of others. Mr.. Pride takes the view
that the money he thinks has been
transferred to Mrs Ponzi can be re-
covered, and he proposes to take the
necessary procedure to obtain the
money if she has any of it.
st can be taken from her and it will
be-" said Mr.. Pride. at does not be-
long to her. 1t is money that was OBJ
tanned under fraudulent pretenses. to
be used for fraudulent purposes. In
going after what may be called Ponzi's
concealed assets, we shall reach the
large amount transferred to OR de-
posted in the name Of Mrs. Ponzi
It will be easy for us to show that The
amounts placed in her name came
from the investments of Ponzi's
creditors.
II do not think she had anything
before Ponzi started on his get-rich-
quick %ctivties, and | believe it will
be easy to show that"
Mrs. Ponzi has contended all along
that hey husband is honest and her
friends say If she has accepted any of
the "gct-rich quick" funds of her hus-
band it vas in the belief they were
legitimatcly earned. Mrs. Ponzi visited
her husband Tonight in jail for more
than an hour. She was weeping when
she came out.
Pink Commissioner Joseph c. Allen
to-day took charge of the affairs of
the Polish Industrial Association.
which conducts private bank in this
city. Henry H. Chmielinski. president
of the Hanover Trust Company. which
was the chief depositary Of Charles
Ponzi, and which was closed last
Wednesday by the Commissioner, is
president of the Industrial Association.
The Bank Commissioner said the
loans of the association were bad or
Of uncertain value. and that tie con-
Germ had little cash left. It's capital
is S13,775 and its deposits were $780,
0OO
No further bank closings are likely
as the result Of Ponzi's operate
tonight. He made this statements
ON response to repeated inquiries,
again state that the Hanover Trust
Company and the Polish Industrial AS
sociation are the only banking institu-
tons in New England known to be in
any way affected by the Ponzi failure. "
None of the money thought to
have been transferred by Ponzi to
his wife has been deposited in the
Hanover Trust Company, accord
ing to Mr. Pride, who made this
assertion with such emphasis as to
Indicate that he was fully aware where
the donations to Mrs. Ponz had been
lodged and that they could easily be
reached.
Amount of Assets in Doubt
M Pride also purposes to sec that
The Ponzi money deposited under other
names is uncovered, secured and made
available for assets. Just at present
he admits he is entirely in the dark
az to the amount of Ponzi's assets,
having devoted practically all his time
to date in arriving at some conclusion
as TO the size OF the liabilities. This
task has been particularly Difficult
owing to the state OF PonZi's accounts
and the practical impossibility of
finding out how many notes had been
sold.
On this latter point the tate Attor-
ney General is rendering aid through
the medium Of his advertising in the
newspapers calling on all note holders
to come to the State House with their
notes and have them recorded. The
but as the clouds grew thicker about
Ponzi the number of notes, submitted
in person and by mail, steadily in
creased until to-day the Office is fairly
swamped. And although each day sees
hundreds submitted, it is believed that
hundreds arc still holding off, in the
blind belief that somehow or other
Ponzi viii find way out of his diff
culties and make good.
From an early Indifference as to
whether they had their notes recorded
or not the feeling has grown, as
Ponzi's real character has been re-
vealed, 10 a frantic desire not only to
have the notes recorded but fol
vengeance on Ponzi.
This feeling ran so high at the State
House to-day that the crowd was
warned that d repetition of the disor-
der would mean the closing of the Of
fee
Give me my money! shouted the
angry note holders, largely italians
today. Kill Ponzi'" Tear him to
pieces!" Give me mine or pay nc
(ConIrucS on pane s.