New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-13

it will sbe some time before a more
accurate statement can be prepared of
the liabilities. Mr.. Ponzi's admissions,
which are deemed to be particularly
significant. were made to Mr.. Pride
yesterday"
Chief Postoffice Inspector Hal b.
Moseby made the following statement:
Never Believed Ponzi Solvent
'It has been my great desire for some
time past that Ponzi should be brought
to account and his scheme laid bare.
that he was solvent. but that in the end
he would be shown to be insolvent.
probably by million Within the last
few days, having felt sure that we had,
or would shortly have, sufficient evil
dence at hand upon which to arrest
fonzi, and to make sure that he could
be found when wanted I have taken the
precaution to keep him under sur
VIGILANCE as far as possible although
the latter gave no indication that he
would attempt to leave this jurisdic-
ton. However, having his previous
record in view, felt it duty to make
every possible effort to prevent his es-
cape.
Ponzis operations last February. when
inquiries began coming into the Office
from investors and prospective inves-
tors. and an investigation was i'm
medlately undertaken. Since that time
we have been working in Europe and
elsewhere.
AS result of this investigation. we
have obtained conclusive evidence that
there has been no abnormal issue or
redemption of international reply cou-
pons. while on the other hand in some
countries the use of coupons has heen
greatly curtailed to prevent this very
scheme which no doubt has reached the
ears of postal officials in many foreign
countries. There is no means 5y
winch a man can manipulate interna-
tionai reply coupons. Ponzi's claim
That he has made millions in this Yav
is SIMPLY stupendous fraud with
nothing upon which it can be based.
Entire Issue Less Than 100000
"Thc entire issue and REDEMPTION of
international reply coupons throughout
the Postal Union for the past six years
would not aggregate $5O0,0OO. Ponzi
could not have handled the millions of
them that would have been necessary
to make the fortune he claimed to have
amassed in the past few months with
out the knowledge of the officials of
the government and of the Postal
Union.
Some countries, fearing speculation
or manipulation OF the coupons, dis
continued their issuance or REDEMPTION
months ago, some of them, particularly
Italy prior to the time when Ponzi
claims to have started his business
ut would be foolish for Italy to re-
deem coupons at the great difference
IN the rate OF exchange, for she would
stand to lose the difference when the
time came to settle accounts.
Soon after our investigation was
started Ponzi was advised by letter
that coupons would not be redeemed
in this country except for legitimate
postage purposes, and postmasters
throughout the country were instruct
ed not to redeem them. The best evil
dence that he did not deal in coupons
in foreign countries is the fact that
he has never produced foreign Gus
toners or foreign coupons.
Amazed at Public Credulity
"The most amazing thing, and the
thing which | am not able to under
stand, is why people invested their
money with Ponzi. l can only ,ttrbute
it to his personality. They invested in
the man, not in the business. We
warned hundreds of people against him
Many needed the warning, but I'M
doubtedly there were many who gave
him their money Notwithstanding.
1--WE found it difficult to talk with
some, people, they were so impressed
and believed so strongly that he was
doing what he said he was doing.
"One Of Ponzls attractive features
was the easy manner in which he talked
in millions instead of in hundreds OF
thousands. He simply charmed and
dazzled the people
"He appealed to the gambling spirit
of the people by the quick action or
the investments. When he started out
he promised so per cent in ninety days
but he paid it in fortyfive days, with
the result that many reinvested their
principal and their winnings.
"Ponzi did not use the mails at the
start, as is often the case in schemes
departm He started business in a
small way, depending upon reinvest-
ments from his customers and upon
the word that would be passed from
one person to another.
DID Not Dare to Advertise.
ole did not dare to advertise in the
newspapers and we did not want to
make it known that we were investi-
eating his business, for the publicity
was just what he needed to attract at
tention. When the story of his opera
tons first got into the newspapers he
welcomed it, for it gave him a chance
to issue statements and get before the
public. 1t was during the last few
weeks, while his business was being