Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-29

BOSTON. July 29.-The United States
government Will make an audit of the
books of Charles Ponzi's Securities Ex-
change Company. through which the
Exchange wizard claims to have
made millions for himself and New Eng
land investors who deposited their saw
fngS with him on promise 10 obtain
so per cent profits within forty-five to
ninety days.
The announcement was made by
United States District Attorney Gala
CHER. just after Ponzi had caused a
big sign to be placed outside his HCes
warning the public aga rst spectators
seeking TO buy up his so per cent profit
notes. The sign also carried PonZi' S
promise to pay everything in fun
Investigation may show" h. said.
solvent. and yet an offender of federal
law. He may be able to do all he says
he is doing. and yet violate the law
"As l told Ponzi the other day"
he concluded. The IS either a benefa ctor
deserving of the Blessing of the pubic.
officials and all alike. or he should he
In Jail Ponzi agreed to that 1t goes
without saying that if Ponzi is solvent
and has violated no federal statute
the government will give him clean
slate.
Warns Against Spectators.
The big sign read as follows
Beware of spectators. Svndicate s
Of money sharks are Buying up notes
of the Securities Exchange Company
at small premiums for the purpose of
holding them and collecting 80 per
cent interes. They know all my not as
against diSposing of the notes 81 4
loss 7 shall pay everything in full"
Ponzi estimated that he had paid
out moro than s1.00oo01 up to the
. hue 1.-Two
onzi made hit with the excited
mob when he ordered the free dis
tribution of hot dog" sandwiches
and coffee TO the thousands waiting
much OF hit was shown by the
large number who decided tina; they
did not want their money back after
all. preferrinE TO leave 1t with PonZi
ninety DAYS Tho hit also found
echo in the ovation rendered the
wizard by the crowd about his
Offices as he left for luncheon.
would have left if he closed out his
business fully. paying off all obliga-
tons. he replied:
II am worth S12.000.GO0 in my own
name. have 100000 of my own
above all demands upon me. in bank"
on this side. and fully sS,000,000 in
banks abroad"
day was the appearance of Ponzi
Alliance, an organization through
which those who profited by his ope-
rations may come to the aid of the
promoter in his hour of need. 1t is
the project of a group of young men
who appeared at the Office of Lev
eroni and Bailen, Ponzi's counsel.
Has Many New Schemes.
In the interim. while waiting for the
various official inquiries to determine
whether he will be allowed to resume
the taking of loans. Ponzi is proceeding
he stated. with plans for other forms
of elaborate business ventures. These
plans. as he announced them. disclose
very magnaninous REGARD for the well
fare of Boston and it's people.
He Is to make Boston the leading ex-
porting and importing center of the
country. he declares, and he is to es-
SebliSh a bank here upon u new prin-
eiple- a principle under which the de-
positorS. instead of merely receiving
stated rate of interest regardless of
the bank profits, are to share with the
stockholders in the gains
Ponzi was asked if he didn't owe
his financial opportunity to the reac-
tons Of the war.
Absolutely" he answered. This
business of mine can be only tempo
rAry at best. simply while the foreign
exchange conditions remain as they
are The minute the exchange offers
no margin, then this business stops"
Then you will retire for life on
your $12,000,o00?" queried his inter
viewer.
Il will not" he answered with en-
phasis- Il will just begin to do my
life work
You know, this whole fracas at
present is due to just one state of af-
fairs. Bankers and business men can
easily understand how / could make
100 per cent net for myself. but simply
because no one ever made an added so