The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-08-14
STATE CLOSES
ANOTHER BANK
IN BOSTON
Ponzi Deals Indirectly
Responsible for
Action
~ ,ns A.soe,Ar,o rsss.

BOSTON, Aug if.-Bnnk commits
siOner Joseph G.. Allen today took
charge of The affairs OF the Polish
Industrial Association conducting
private bank in this city. Henry II.
Chmielinskl. president Of the Han
over Trust company. the chief de-
positary OF Charles Ponzi. which was
closed last Wednesday by the com
missioner, II president of the indus
trint Association.
Bank Commissioner Allen said thpt
the loans OF the association were
either bad or of doubtful value and
there was virtually no cash left.
Ponzi ate his breakfast in the Mid
dleseX county jail In East Cambridge,
prisoner OF the government In de-
fault OF S25. 900 bond.
Three Bankers Rre Prisoners
Three Officers Of the Old colony
Foreign Exchange company. n rival
concern Of ponzis Securities EN-
change company were prisoners of
the common wealth In defaust or
$780, bonds each.
An involuntary petition In bank
ruptcy directed against three officers
Of the Old Colony Foreign Exchange
company, WIS f1"d today by three
petitioners.
At the same time another petition
for the appointment OF receiver for
ponz and his Securities Exchange
comnny was filed. a hearing was
ordered for next Tuesday.
Samuel Zorn. an agent for the Old
Colony Foreign Exchange company
who was arrested yesterday pleaded
not guilty today to a charge OF lar
I ceny OF $500. and was released under
! $4,000 bond. He said he had been
I working for the company only two
days.
Recover % Check.
In connection with the arrest of the
/ officers OF the Old Colony Foreign
B Exchange company the police an
nounced today the recovery Of n certi-
! fled check for $4,000 drawn by
! Charles NJ. Brightwell. as president OF
I the company to his own order and
endorsed by him. The check was
drawn on national bank. The
police declined to say In whose pos
session II was.
Threats against the officers Of the
Old Colony Foreign Exchange COM
pany were frequently heard In the
state house corridors as hundreds OF
foreigners clamored for the return OF
their money today.
No estimate OF the amount repre-
sented by notes OF the Old Colony
Foreign Exchange company which
had been reported during the fore
noon was rvallable, but II was said al
the attorney generals office that the
total of Ponzrs Liabilities thus far un-
covered through such reports was Ia
excess of $4,000. 900.
The fact that Ponzi's wife applied
for and obtained a pass permiti-G
her to call on him at the jail at ans
time today. Sunday and Monday, wal
regarded as an indication that Ponz
did not expect to obtain ball immedi
ately.
Crowd About Bank.
A crowd gathered about the banl
of the Polish Industrial association
which is located In n congested for
eign quarter. but the police had it'll,
difficulty In maintaining order.
! was said the association had abou
1900 depositors.
At the association headquarters I
was stated that the bank was organ
ized several years ago by Father Johi
chmielinski. OF the Polish church o
South Boston.
II was said that those who applied
to the association yesterday for none!
were told to come back next week.
Two men who collected so per cen
profit on deposits made with POM
before his business was suspended re
turned their winnings to the attorne,
general today. One man turned owe
1900 and the other $3.50.