The Birmingham age-herald., 1920-08-14
PONz| SURRENDERED:
 FOUR OTHERS IN JAIL ON LARCENY CHARGE
Bonds Are Extremely Heavy Owing to Large Amount of Money Handled
 Before Crash
By Associated Press


 who have accepted millions of dol-
 lnrs from New England investors
 in the last few months on promises
 of payment of fabulous interest
 were behind the bars tonight
 Charles Ponzi, whose spectacular
 financial dealings have made his
 nnme known the country over. was
 surrendered today by the man who
 furnished S35,OO0 bond for his re-
 lease after his arrest by the fed
 eraI authorities yesterday. Unable
 to find another bondsmsn, Ponsi
 was taken to the MiddIesex county
 jail at East Cambridge.
 Three officers of the Old Colony For eign Exchange Company were arrested, taken into the municipal court and held in $50,000 bonds each on a tech nical charge of larceny of $500 from persons unknown. In default of bonds they spent the night in the Charles street jail. They are Charles M. Bright we'll president and treasurer of the concern; Raymond Myers. office man ager, and Fred Meyers, sales agent. All three pleaded not guilty.
 That the activities of this company might have rivalled in extent the dealings of Ponzi's Securities Exchange Company was intimated by Albert Hur- witz, assistant district attorney of Sui folk county when he told the court that the amount involved in it's trans- actions would probably be shown to be hundreds of thousands of dollars.
 1t was upon this representation that he asked that the bonds be set at a high figure. The three men will be given d hearing on August 24
 FURTHER PROCEEDINGS
 Further criminal proceedings were taken against Ponzi today. In the mu- nicipal court a blanket warrant was issued charging him with larceny in 5S counts, totaling S24.000
 Police inspectors were at the federal building prepared to rearrest Ponzi if the federal authorities released him again on bail. but as he was taken to jail the municipal court charges against him were held in abeyance.
 Further bankruptcy proceedings in which for the first time partners Of Ponzi were mentioned were brought in the federal court. The three petition CTS were holders of Ponzi's notes for a total of $2,o25.
 Rumors were current tonight that further developments bearing on get rich quick" schemes might be expected in the near future There was no hint as to. the nature of these developments.
 Joseph C. Allen, state bank commis- sioner, said he knew of no foundations for reports that Ponzi's crash might n- volve any banking institutions except the Hanover Trust Company, which was closed by the commissioner earlier in the week Ponzi was a director and share holder in this bank. through which he checked out millions of dollars.
 BURRELL IS SILENT
 State Treasurer Fred J Burrell refused to make any statement regarding the s125o0o of state funds deposit at the Hanover Trust Company He had been criticised for leaving the funds in a bank of which Ponzi was a director after the latter's prison record had been revealed
 More than a hundred note holders sre in the exchange companys outer office this forenoon when man emerged from the inner office and announced that "by order of the district attorney no pay ments on notes would be made flor three or four days" Brightwell said later that this announcement was er- roneous so far as mention of the dis trict attorney was concerned, but that the company had decided to suspend pay ments temporarily on advice of it's at torney.
 We want our money" several of them dema anded.
 WANT THEIR MONEY
 There was a rush toward the inner of flee. Guards employed by the concern struggled to keep the people back.
 Threats were made against Brightwell. "Pll break his neck one man shouted
 Finally the guards succeeded ir clearing the offices and the doors were closed and locked. But the crowd re mained in the outer hall and surged against the doors with such force that the glass was broken.
 The attorney generals office also was engaged today In studying the status and legal precedents in order to determine whether any action could be taken by the state to compel persons who had cashed their notes on Ponzi with or without the fifty per cent in terest which he paid on notes that had run forty-five days. to turn the money