New-York tribune., 1920-08-18
Il Am Solvent
Asserts POnZi:
Cites Figures
Liabilities Only $2,OOO,OOO,
He Insists, and Assets
Are More Than Adequate
to Cover Full Amount
Notes Raised by Forgers
Application for Receiver
ship Is Taken Under Adj
visement by U. S. Court
Special Dispatch to The Tribune

BOSTON, Aug. 17.--Charles Ponzi
80 per cent in As days financial wiz
ard" still insists he is solvent. He
says the state has shown he has only
$3,O00,000 in liabilities, which figures
include the 80 per cent interest on out
standing notes, which interest, he as
serts, is not liability. This makes
his liabilities, he continued, not more
than S2,000,000, against which he has
valuable securities, his certificate of
deposit with the Hanover Trust Com
pany for $1,500,000 (rcduced $500,00O
by loan). his palatial Lexington resi-
dence and numerous automobiles.
The wizard also charges that he has
been the victim of big swndling
scheme in that notes which he issued
for $50 have been raised to $500 and
notes for $500 to $1,000 by the forgers.
He declares that Notwithstanding every
precaution to guard against such acts
many of these notes got by in the rush
of payments incident to the several
days run on his offices.
Italian Wines Seized
Internal revenue agents raided the
home of the coupon king and seized
100 gallons of Italian and Chianti
wines, after going through every
Granny. 1t was surmised that the raid
for liquor was merely a blind to dis
cover any possible data that might be
OF value to the receiver when named.
1t has been discovered that loans
were made by the Hanover Trust Com
pany on stocks Of whisky. Prohibition
Enforcement Director Mccarthy an
nounced that he was investigating in
an effort to locate the whisky and that
permission would be asked to question
Ponzi about the alleged transactions
The battle for receivorship opened
in the United States Court to-day be-
fore Judge Morton. Counsel for Ponzi
asked for three receivers. The state
contended that one receiver could look
after everything. The court favored
the idea of one receiver, and after a
two-hour hearing, took the case under
advisement, letting it be known that
suggestions for an appointec were not
wanted. 1t is expected that William r.
Sears vii. be the man named
Mrs. Ponzi to-day obtained a pass,
good for q week, to visit her husband
in East Cambridge jail. This action
was taken to mean Shat Ponzi has
abandoned his fight to be released on
bail. He tried prison fare to-day for
the first time since being taken to
East Cambridge, but abandoned it after
breakfast OF not couee, trankfurtcrS
and bread. He sent out for his dinner
Of broiled chicken, sliced tomatoes,
bread and butter and two bottles of
ginger ale. He did, however, stick to
his clay pipe, which he has taken up in
place Of his usual cigarettes.
Contributions of profits from con-
sclencestricaen or scared noteholdcrs
continue to pour into the State House
and now total thousands OF dollars.
One was for $1,150 from waiter at the
Hotel Lenox.
Creditors proceedings against the
Old Colony Foreign Exchange Company,
the Ponzi rival, were put over until to-
morrow morning.
The II. V. Greene Company, the Bos-
ton underwriting concern for the First
Peoples Trust Corporation, the Com
merclal Finance Corporation, the Mu-
tual Finance Corporation and the
Bankers Union for Foreign Commerce
and Finance, flied statement Of it's
financial condition with the State Com
missioner OF Corpora tions. The state
ment shows assets Of $45S,5S4 and liza
bilities of ike amount, including a
surplus of $105,l66