Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1920-08-26
PONZI'S AFFAIRS
IN RECEJVERSHlP
finnncicr's Estimate OF Assets IL the
Only One Available


Boston. Aug 20 THE broken fortunes
o. Charles ponzi aud the interests of
thousands Of investors in his uuicli-lich
scheme were placed in receivership by
Judge Morton of the federal district court
to-day.
inc court appointed thr.c receivers
William r. Sears Of Cohassct. John
ForboS Perkins OF Milton and Edward A.
Thurston of Fall River. 1t was ordered
that they qualify in bonds of $50 600 each
me amount CT assets to ce handled Is
uncertain, PcnzFs statement that they
would aggregate 100000 being the on,y
estimate available
The receivers viii DO called upon TO
adjust claims which already aggregate
more than that sum Or the basis of records
e. notcholCers tabuiated b. the State
attorney-Gereral. and the total 10 likely
to run - 100000, according % the esti-
rete of Edwin l.. Pride, the accountant
VINO has 9een making an audit Of Ponzis
liabilities These figures include the 80
per cent profits promised by POM! to his
Investors. and Incorporated in the notes
which he issued for payment in 20 days
Nlth tho probability that settlement Of
GLAZING viii be on the basis of actual IN
vest:'en:s. the figures will be pared down
by approximately onc-th.-d The receivers
also VII be called upon TO decide whether
, they WI. proceed against those persons
20 Wrom Poa2i paid the 80 per cent profit
before he stopped doing business
Hc asserted yesterday that he had paid
out Sr5oo'p. Some of these payments
were refunds Of actual investments only.
hundreds Of persons having FASTENED to
abandon their promised profits in the run
Of withdrawals which marked several OF
the later stages of the operations Of
Ponzfs Securities Exchange COMPANY.
Accordingly, the amount of money paid
out by Ponzi in interest, and subject TO
action by the receivers. should it be held
that undue preference was given the per-
sons VINO received it, would be approxi-
ma,cly 100000
( OF the receivers named by Judge Nor
ton, Sears and Thurston are LAWYERS,
and Perkins a business man Sears APP
peared at the hearing on the petition for
receivers as the representative of the
Legal Aid society of this city and in
behalf of some of the creditors. Thurs
ton is former chairman of the Republi-
can state committee Perkins is a for
NOR secretary and treasurer Of the Calu-
met and Hecla Mining companies.
The old Colony Foreign Exchange com
pany, a rival of Ponzi in Offering high
rates of interest for Investments. also
( was paced in receivership by Judge
/ Morton, John +. Hannigan Of this city.
a lawyer. being named as receiver.
/ a belief that creditors Of the company
would receive ninety per cent of their
/ investment was expressed in the federal
court by Robert Gallagher. counsel for
the company. This figure is considerably
higher than the estimate Of Attorney
(fenar1l ~ ~
yesterday that visible assets thus far
amounted to something like s15ooOo and
that the total of the companys bust
ness in notes was probably $3.50. 900
/ Mr.. Gallagher told the court that aside
from the assets in the possession of At
/ torney-General Allen and the police there
was a deposit of $4,000 in Boston
bank in the name of the wife of the
president of the company, Charles Bright
well, deposit in New York bank of
$1,000 and the office furniture.
Judge Morton said that the receiver
! ship would cover the three petitions filed
in the case, one against the company and
one each against President Brightwell
and the secretary, Raymond Meyers. In
this respect the action was different from
that in the Ponzi receivership where only
one of the several petitions was acted
/ on.
In the bankruptcy court Ponzi filed a
statement as an alleged" bankrupt
promising to surrender all property in
, compliance with the bankruptcy law.
At the time Of his arrival the three re-
ceivers appointed this morning for his
affairs We're holding a meeting in an
other part Of the federal building. When
they heard that he was within easy
reach, they decided TO arrange an inme-
date conference with him with view
to having him examined under oath.