Pine Bluff daily graphic., 1920-08-15
.P0NzPS VICTIMS
 CROWD OFFICES 0F
 ATTORNEY Y-GENERkL.
Holders of Notes for More Than Two Millions Seek ONLY TWO BANKS ARE INVOLVED IN SCHEME POnzi and Others Arrested in Col lapse of Banks Unable to Furn-
 ish Bonds

no further bank closings are likely as result of the collapse of the financial dealings of Charles Ponzi was given tonight by Joseph c. AL len, state bank examiner.
 "The Hanover Trust company and the Polish Industrial association are the only banking institutions in New England known to be in any way affected by the Ponzi failure" Mr. Allen said.
 | No bondsmen were forthcoming today for Ponzi or for three officers of the Old Colony Exchange compa my, the "100 per cent in six month" concern, who were arrested yester day. Samuel Zorn an agent, off the foreign exchange company, was re- leased in $2,OoO bonds.
 | Bankruptcy petitions were filed against the Old Colony Foreign Ex- change company today. Branch of jfices in several New England cities were closed by county authorities. The officers of Attorney General }J. Weston Allen at the state house were crowded throughout the day with note holders of the Securities Exchange company and the lid Col ony Foreign Exchange company. Presentation of these notes already has disclosed liabilities on Ponzis company to the extent of $2,O00,O0O
 The possibility of q shake-up in the police department as result of the bursting of the Ponzi finan cial bubble was seen in state ment issued by Police Commissioner Edwin U. Curtis.
 The commissioner said it had been called to the attention of depart officials that members of the de- partment including superior off cers had invested with Ponzzi, and that it was reported that some po- 1 licemen had even acted as agents and received commissions. Work of Salvage Begins.
 The financial ship that has been piloted by Charles Ponzi was high and dry on the rocks today and fed eral and state officials made deter mined efforts to salvage the cargo | of millions of dollars entrusted to 1 Ponzi by thousands of investors in his $50 per cent in three months" This morning Ponzi ate his break fast in the Middlesex county jail in East Cambridge, prisoner of the United States government, in default of $25,OO0 bond.
 Three officers of the Old Colony Foreign Exchange company, a rival concern of Ponzi's Securities Ex- change company, had their morning meal in the Charles Street jail, pris. CTS of the commonwealth in default of $50O0O bonds each. Samuel Zorn. said to be an employe of the Old Colony Foreign Exchange company, was at headquarters awaiting hear ing on a charge of larceny of $500, from persons unknown. He also had spent the night in jail.
 The three officers of the com pany who were held are Charles M Rrightwell, president and treasurer of the concern; Raymond Meyers, of flee manager, and Fred Meyers, sales agent. The Meyers are brothers. The men were held on technical charges of larceny of $500 from per. sons unknown. Upon representation of Albert Hurwtz, assistant attor- 1 ney general, that the company's transactions probably would be shown to have amounted to hundreds of thousands of dollars; the bonds were set at a high figure.
 Edwin l.. Pride, federal auditor of Ponzi's accounts, has placed the lat ter's known liabilities at $S,000,0O0 and Ponzi claimed assets of about $4,OOO,0OO
 In this connection MT. Pride said:
 "I am inclined to believe that a I great deal of money collected by Ponzi and his agents has been de- posted in the names of others.' Wife is Loyal.
 I Ponzi withheld from his wife the news of his surrenderer by his bordsmen. He telegraphed to her before going to jail that he was re- maining in Boston during the night to go over his books with an auditor. Mrs. Ponzi reasserted her faith in her husband.
 "He is honest" she said, "and I will stay by him to the end"
 The second of the two petitions that have been filed to have Pom . zi adjudged bankrupt was pending in the federal court today. The three latest petitions, holders of Pon- zi's notes for total of $2,625, ask ed that two partners of Ponzi, John s. Dondero of Medford and Gugliel- mo Bertollotti of Parma, Italy, also be adjudged bankrupt.
 A petition for a receiver to ad- minister Ponzi's affairs also has been filed by creditors.
 Examination of the books of the Hanover Trust company, Ponzi's chief depositary and in which he was stockholder and director, was con t:nued today by members of Bank l