The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-08-24
PONZ| MAINTAINS
He IS SOLVENT
Insists His Liabilities Are
Not Over $4,00O,OOO and
Assets About Same
CLAIMS ASSETS ARE
IN HANOVER TRUST
Some of Them In Safety Deposit Boxes
In Closed Bank Young Girl Who
Acted as Office Manager to Testify
Before Receivers.

BOSTON, Aug. 24--Charles Ponzi to-
day placed the liabilities which he in
cured in the promotion of his interna-
tional postal coupon scheme at between
s3,OO0,0O0 and 100000 and, persisting
in his claim that he is solvent, said his
assets would run to pretty near S4,-
000,000" He gave what he said was a
virtually complete list of the items
which he regards as assets With d
smile he admitted that he had no thought
of international reply coupons which he
had claimed were the medium by which
I've was rolling up tremendous profits for
his investors and himself
The get-rich-quicll fnancier was testi-
conducted by the federal receivers of his
down all available assets. He had as au-
ditors crowd which packed the federal
district court room, many of them wo-
men. Ponzi's young wife appeared for
the first time and Miss Lucy Nell, the
girl of IS years who was his Office man
ager, was in the courtroom under sum
In response to questions by Robert
Dodge. counsel for the receivers, Ponzi
said that most of his assets were on de
post with the Hanover Trust Co, either
on his drawing account or in safety de-
post boxes This institution has been
closed by the state bank commissioner
on the ground that it's capital was I'M
paired through connection with Ponzi
operations. Ponzi said in the course OF
the examination today that the presi-
dent of the Hanover Trust Co. and Its
treasurer each owe him $4,000 advanced
as personal loans on notes which are on
deposit at the bank. His loans to IN
dividuals he testified, amounted to be
tween S200,000 and $500 900. He was not
exact in his detail but said he remem-
bered one of $4,000 to Desmond of the
Lawrence Trust CO." and S400 and $500
to the chief of police of Sharon. he
mentioned again also notes for, loans
which he made to the Napoli Macaroni
CO., and the J. r. Poole Co., in which
he was principally interested, of SS,Oou
and $4,000 respectively.
When pressed whether there was any
thing else on which he relied 70 prove
that he is solvent Ponzi said he had some
bonds. Liberty bonds and German marks
in one Of several safe deposit boxes in
this CITY and vicinity.
INQUIRY about the checks for S23,0OO
each received by Daniel Coakley and
Daniel V. McIsaaes led to a spectacular
incident which eliminated in the volun-
tarv surrender of the checks to the re
ceivers to be merged with the other
assets. Recorder Edward Thurston and
Attorney Dodge had shown considerable
interest in questions to Ponzi as to the
time he first retained counsel and whether
he had paid counsel himself. He engaged
counsel. he said, when United States At
torney Gallagher intimated he intended
to prosecute him sometime before Aug
u. but it was not until the hearing last
Saturday that he knew they had actually
been paid $4,000 from funds which he
had at the Hanover Trust Co.
Pursuit of this line of inquiry was
marked by several exchanges between
the receivers and their counsel and Mr.
Coakley. The latter finally jumped UP
and exclaimed: Lets find out if you
fellows are working for widows. and or
phans I'll give up my S25 900 and work
for nothing. VIII you do the same, re-
ceivers and counsel?"