Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1920-08-17
JAIL DOORS SHUT
BEHIND FINANC|ER
CHARLES PoNZi AND THREE Ac-
cEssoRlEs ARE ARRESTED BY
FEDERAL AUTHORITIES
SECOND COMPANY SUSPENDS
Also Charged With Larceny.-Rond of
Officials Is Fixed at $4,000. and
Men Are Jailed When Bonds
men Are Not Forthcoming

have accepted millions of dollars from
New England investors in the last few
months, on promises of payment of
fabulous interest, are behind the bars
today.
Charles Ponzi, whose spectacular fl
naneiaI dealings have made his name
known the country over, was surren-
dered yesterday by the man who fur
nished $4,000 bonds for his release
Thursday after his arrest by the fed
eral authorities. Unable to find an
other bondsman, Ponzi was taken to
Jail.
Three officers of the Old Colony
Foreign Exchange company were ar
rested, taken into the municipal court
and held on $4,000 bonds each on
technical charge Of larceny Of $500
from persons unknown. In default of
bonds they spent the night in Jail.
They are Charles NJ. Brightwell, presi-
dent and treasurer of the concern;
Raymond Meyers. office manager, and
Fred Myers, sales agent All three
pleaded not guilty.
Samuel zorn was arrested at his
home in the Dorchester district last
night on a warrant charging larceny
of 5000 from persons unknown. This
was the same charge upon which the
three officers of the Old Colony For
eign Exchange company were arrested
earlier in the day.
That the activities of this company
might have rivalled in extent the deal
ings of Ponzi's Securities Exchange
company was intimated by Albert Hur-
WITT, assistant district attorney of Suf-
folk county, when he told the court
that the amount involved in the trans
actions probably would 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
preliminary hearing on August "a.
Further criminal proceedings were
taken against Ponzi yesterday. In mu-
nicipal court n blanket warrant was
issued charging him with larceny in
53 counts, totalling $4,000. Police in
spectors were at the federal building
prepared to arrest Ponzi if the federal
authorities released him again on bail,
but as he was taken to Jail, the mu-
nicipal court charges against him were
held in allegiance.
Further bankruptcy proceedings in
which for the first time partners Of
POnzi were mentioned, were brought in
the federal court. The three petition
ers were holders of Ponzi's notes for
a total of $2,625. They asked that
Ponzi and John S. Dondero of Med
ford, and Guglielmo Bertollotti, Of
Parma, Italy, named as his partners
in the Securities Exchange company,
be adjudged bankrupt.
Rumors were current last night that
further developments bearing on ''get-
schemes might be expect
ed in the near future. There was no
hint as to the nature of these devel-
opments.
Joseph G. Allen, state bank commits
sioner, said that he knew of no foun-
dalton for the report that Ponzi's
crash might involve any banking insti-
tutions except the Hanover Trust COM
pany, which was closed by the commits
sioner. Ponzi was a director and
shareholder in this bank, through
which he checked out millions of dol
lars.
The arrest of officers of the Old
CoIonv Eorafon Txobopoo oo,.,,~,--.
came after a frenzied run by note-hold-
ers upon the companys offices on
Devonshire street. One of the re-
suits of this run was an imperative
notice served on President Brightwell !
by the trustee Of the building to vacate
his quarters within half hour. Short
ly afterward the offices were closed |
More than 100 note holders were in |
the Old Colony Foreign Exchange
outer offices all forenoon.
The announcement that payment had |
been suspended brought loud cries
from the waiting crowd.
1--WE want our money" several
shouted.
There was a rush toward the inner |
office. Guards employed by the con-
Germ struggled to keep the people back.
Threats were made against Brightwell. |
Finally the guards succeeded In
clearing the offices and the doors
we're closed and locked.
The company announced payment OF |
notes would be resumed Monday.