Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-13
RUN IS COMMENCED
. ON SEcON|l|B0STON ! | !.
CONCERN
Old Colony Company, Like
Ponzi's, Offered Investors
Huge Profits.
BY the Associated Press.


BOSTON, August 13.-Patrons OF
the Old Colony Foreign Exchange
Company. which offered 100 per cent
interest in six months on notes and
which has continued in operation
during the investigation of Ponzi's
affairs, continued a run on the COM
pany's office in Devonshire street to-
policemen, were assigned to keep the
people in line. Those who said they
wanted their money back and a few
who wanted to invest were requested
to leave their names and addresses
and were told that they would be
notified when the company would re.
ceived further subscriptions or would
be ready to refund.
A report spread among the crowd
that investors would be paid at a
branch Office of the company at 80
oliver street, and there was an imme-
date arush in that direction. The
Oliver street branch is in a room on
the third floor. Three clerks en-
ployed there got word that the crowd
was coming and they locked the doors
anu disappeared. Throngs remained
around the doorways of both these of
fees of the company for hours.
Other Arrests to Follow.
Other arrests are expected within
twenty four hours as the further result
of the investigation of spectacular
financing which began when Charles
PonZi's Securities Exchange Company
fell under suspicion.
With the matter of Ponzi's affairs
pretty well in hand. Attorney General
J. Weston Allen has turned his atten-
ton to other money.making enter
prises which it is claimed have been
conducted in violation of the law and
to the loss of too credulous investors.
Ponzi remained at his home in Lex
ington today. denying himself to in
reviewers. A score of men, supposed
men. were in the vicinity of his resi-
dence. apparently with view to
keeping watch on his movements.
Await Further Developments.
New England awaited with keenest
interest today further developments
in connection with the crash of Pom
zi's dream castle finance to the build
ing of which 10000 investors are al
legged to have contributed from $15,-
900 900 to $20.000,000.
The financial district of the city
was especially concerned lest the in
yestigation under way disclose opera
tions that would involve institutions
other than the Hanover Trust Com
pany, which. was PonZis largest de-
pository."
bank Commissioner Joseph c. Allen
said today that so far as he knows
there is no foundation for reports
that other banking institutions beside
the Hanover Trust Company may be
involved with the Ponzi collapse.
Other elements of the situation to-
Ponzi was free under bail of $685.
non of which $25,0O0 was for his ap-
nsarance before the federal govern
noent on charge of using the mails
in a scheme to defraud, and $4,000
for his appearance before the munich
nol court on three-count larceny
charge. s;. Co. -, Ga
.raI authorities of Ponzi's accounts.
was nearing completion of his tabu-
rstion of the latter's liabilities. Mr.
Pride has said that the liabilities al
raadv are shown at $7.000.000. Ponzi
claimed assets of not more than $4,-
100000.
Hanover Bank Solvent.
Examiners from the bank commits
sioners office rushed their work to
determine the exact extent to which
Continued on Page .. Column A.