The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1920-08-27
JAIL DOORS SHUT
BEHIND F|NANC|ER
CHARLES PoNZl AND THREE &C
cEssoRlEs ARE ARRESTED ~
FEDERAL AUTHORITIES
SECOND COMPANY suSPENDs
Also Charged With larceny.-eond Of
Officials 10 Fixed at $4,000, and
Men Are Jailed When Bonds.
men Are Not Forthcoming

Boston, Aug. 14.-Four men who
have accepted millions of dollars from
New England investors in the last few
months. on promises of payment Of
fabulous interest, are behind the bars
today.
Charles Ponzi. whose spectacular II.
nancial dealings have made his name
known the country over, was surren-
dered yesterday by the man who fur
nished $4,000 bonds for his release
Thursday after his arrest by the fed
eral authorities. Unable to find an
other bondsman, Ponzi was taken to
Jail.
Three officers of the Old Colony
Foreign Exchange company were ar
rested. taken into the municipal court
and held on $4,000 bonds each on a
technical charge Of larceny of $500
from persons unknown. In default Of
bonds they spent the night in Jail.
They are Charles NJ. Brightwell, presi-
dent and treasurer Of the concern !;
Raymond Meyers. office manager, and
Fred Myers. sales agent. All three
pleaded not guilty.
Samuel Zorn was arrested at his
home in the Dorchester district last
night on. a warrant charging larceny
of $500 from persons unknown. This
was the same charge upon which the
three officers of the Old Colony For
eign Exchange company were arrested
earlier in the day.
That the activities Of this company
might have rivalled in extent the deal
ings of PonZi's Securities Exchange
company was intimated by Albert Hur-
WITT. assistant district attorney Of Suf-
folk county, when he told the court
that the amount involved in the trans
actions probably would be shown to be
hundreds of thousands of dollars. 1t
was upon this representation that he
asked that the bonds he set at a high
figure. The three men will be given a
preliminary hearing on August "a.
Further criminal proceedings were
taken against Ponzi yesterday. In m,l'
nicipal court a blanket warrant was
issued charging him with larceny in
50 counts. totalling $4,000. Police in.
spectors were ut the federal building
prepared to arrest Ponzi if the federal
authorities released him again on bail
but as he was taken to Jail. the mu'
nicipal court charges against him were
held in allegiance.
Further bankruptcy proceedings In
which for the first time partners OF
Ponzi were mentioned. were brought Ia
the federal court. The three petition
ers were holders Of Ponzi's notes fol-
q total Of $2.825. They asked that
Ponzi and John s. Dondero. of Med
ford. and Guglielmo Bertollotti. Of
Parma, Italy. named as his partners
in the Securities Exchange company,
be adjudged bankrupt
Rumors were current last night that
further developments bearing on "get.
rich-Quick" schemes might be expect.
ed In the near future. There was no
hint as to the nature of these devel.
opments.
Joseph c. Allen. state bank commits.
sioner. said that he knew Of no foun.
dation for the report that Ponzi's
crash might involve any banking insti'
buttons except the Hanover Trust com,
pany. which was closed by the commits
sioner. Ponzi was a director and
shareholder in this bank. through
which he checked out millions Of dol
lars.
The arrest Of officers Of the Ole
Colony Foreign Exchange compan!
came after frenzied run by note-hold
ers upon the company's offices or
Devonshire street. One OF the re
suits Of this run was an imperative
notice served on President Brightwel
by the trustee Of the building to vacatt
his quarters within half hour. Short
" afterward the offices were closed
More than 100 note holders were il
| the Old Colony Foreign Exchange
company's outer offices all forenoon
The announcement that payment hat
been suspended brought loud crie
from the waiting crowd.
I'VE want our money! Severa
shouted.
There was a rush toward the inne
office. Guards employed by the con
Germ struggled to keep the people back
Threats were made against BrightwelI
| Finally the guards succeeded Il
clearing the offices and the door
were closed and locked.
The company announced payment o
notes would be resumed Monday.
| nice annrh WEno