The Barre daily times. (Barre, Vt.) 1897-1959, 1920-08-02
PONZI DENIES TRUTH
OF NEWSPAPER STORY
He Declares That He Has
as Much Money as Will
Be Needed to Meet Any
Obligations That May Be
Presented - Story Was
Started by Former En-
ployee.

Boston, Aug. g ne HSeoi i'iN7 -
change Co, headed by Charles Ponzi,
whose alleged operations in foreign ex'
change are being investigated by Unit
ed States Attorney Daniel J. Gallagher
and Attorney General Weston Allen OF
Massachusetts, continued to-day the
payment of notes to those investors
who presented their claims. The line OF
claimants awaiting attention was
long one. extending from Pi Alley
through City Hall avenue to Court
so,fare and fully equalling that of the
early days of last week, when, at
the request of investigating officials
Ponzi stopped taking in money from
would be depositors. Ponzi's prompt
return of funds to those who asked for
them had the effect toward the end of
last week, to greatly dimisning the
number of claimants, but to-day there
was evidence of a sudden renewal of
the desire to cash the notes he has
issued.
While his clerks we're meeting these
demands returning the principal to
those whose 90-day notes had not ma
tured, and keeping, it was said, the
promise to pay 90 per cent interest on
natured notes, Ponzi himself issued
statement in denial of published arti-
Gle by William H. McMssters, his for
mer publicity agent, in which McMas-
ters expressed the belief that Ponzi
was hopeFessly insolvent and was pay
ing out money to some depositors at
the expense of others
81 have twice as much money as will
ever be needed" said Ponzi, ito meet
any obligation that may be presented
to me- and, he added, that McMasters
never was in a position to learn his
employers financial standing or meth
DDS of operating his business.
Many of those who waited for their
money to-day were reading copies of
appeared. The crowd included sprink
ling of women, some of whom said
they had left their employment for a
few hours for the purpose of procuring
the money they had invested. Pink
checked youths rubbed elbows with
elderly men in the line. Among them
moved few SPECTATORS, endesvoring
to buy investors claims at discount,
but tAsse spectators were fewer than
last week, apparently.
Anticipating the increased crowds,
Ponzi had ordered his Office opened
earlier than usual and every effort
made to speed up payments Note hold
ers apparently experienced no difficult
ty in obtaining what was due them
other than the inconvenience of waiting
in line until their turn came. Ponzi
himself appeared somewhat before his
usual hour, coming from his new home
in Lexington in his now-familiar auto
mobile He left the machine in Court
street and walked to his School street
Office, two blocks away.
Miss Lucy Nell, Ponzi's offi@ man
ager. said that she was ready to meet
all demands and that the lengthening
Of the line Of persons, seeking return
of their investments made no differ
ence. She estimated the number Of out.
standing accounts of the head office
here a. not more than half the s25 600
which had been given as the figure in a
published article.
Assistant United States Attorney
Shea, who has taken charge Of the fed
eral investigation during the absence
az United States Attorney Gallagher.
conferred during the forenoon with Ed
win 7. Pride. who is making an audit
OF Ponzi's books for the federal author
ies. An Official from the office of the
attorney general al Washington parti-
tipated in the conference.
Mr.. Pride said later that thus far
bis audit had shown no evidence q
eriminslitv He added that he was
noWhere near done
We are TRYING 70 find the snurce of
ponzis funds and what he has done
With his profits he said