The Barre daily times. (Barre, Vt.) 1897-1959, 1920-08-17
FOR BENEFIT OF
10000 CREDITORS
Ponzi Counsel Advanced
the Possibility That His
Concern May Be Solvent
Despite the Findings
Thus Far Reported by
Those Who Are Auditing
the Books.

Boston, Aug, lit was agreed IN
the federal court to-day that Charles
Ponzi's quick riches scheme should be
placed in receivership for the benefit OF
the 10 thousand outstanding creditors,
whose claims run into several millions
OF dollars
Counsel for Ponzi joined with petit
tioning creditors and Attorney General
Allen in agreement that receivershlp
was advisable. but advanced the pos
sibility that Ponzi would prove to be
solvent after all, and asked for repre-
sentation in the receivership. Judge
Merton took under advisement the
auestion whether one or three receivers
should be named.
The court room was crowded with
those who had trusted in Ponzl' 5
promises to make fortunes for them
by manipulating international postal
exchange The attorney general de-
clared the case transcribed in size any
that had ever come before the court,
and that because of the states deposits
in the Hanover Trust company, which
fell in the collapse of Ponzi, the states
contingent interest might prove greater
than that of any other creditors.
The attorney general announced
that his records of Ponzi's liabilities
as reported to him by note holders TO
date exceeded three millions of dollars,
with the morning mail of 500 Ponzl
letters still untabulated. The possi-
bility of solvency for Ponzi was sd-
vanced by Daniel v. McIsaac, his coun'
sci. and was based on an estimate
which he attributed to the attorney
general that liabilities would not
greatly exceed three millions.
Ponzi having over S4,000,000 in as
sets it might be easily found that he
is solvent, he said. John Crowley
representing a committee TO assist note
holders of Ponzi, said that there were
indications that the assets were con
siderable" and that a receiver might
save much OF the money for credi
tors.
The hearing, which was on two pc
titions for receivership, one against
.ponzi, and the other against Ponzi
John S. Dondero and Guglielmo Ber
telotti, as partners, was given ovel
largely to discussion whether POM
had any partners in fact. Bertelotti Il
either dead or in Italy and beyond th'
jurisdiction of federal courts, it wal
stated As TO Donderos participation
Samuel L. Ballen, who has appeared a
counsel for Ponzi, said Dondero wa
only an employe and that his nam
was signed to papers of partnership
bv Ponzi. not as a forgery, but to fl
in the forms required by local regu
lations. Dondero and his relatives
counsel said, were heavy losers in tn
collapse of the scheme. Mr. Melsaa
said that he had been informed b
Ponzi that he had no partners, eli
that he would oppose the petition as
related TO Dondero; otherwise concur
ring in the plea for receiyership.
Ponzi was still a federal prisone
al the East Cambridge Jail to-da.
lacking a bondsman The fact tina
complaints against him were accum
ulating, on each of which bail coul
be demanded, was said to be the res
son his counsel had not brought abop
his release on the charges on which
Is now confined.
In his absence from home his maj
sion in Lexington was rsided to-da
bv federal prohibition enforcement o
feers. who seized 70 gallons OF VII
and three dozen quarts Of Chianti win
They announced that they found ali
three empty whiskey cases No Pe
mits for such liquor were granted th'
said. Mrs. Ponzi said she was witho'
information Of the liquor, except thi
she thought her husband obtained Il
wine for his mother, who lives At tbs
home.