The Barre daily times. (Barre, Vt.) 1897-1959, 1920-08-14
PONZI STILL IN JAIL;
BONDSMAN QUIT HIM
Three Officers of the Old
Colony Foreign Ex-
change Co. Are Under
Bonds of $4,000 Each
Frenzied Run on That
Institution, Several Hum
!. dred Thousand Dollars
Having Been Invested.

Boston, Aug. l4-The financial ship
that has been piloted by Charles Ponzi
was high and dry on the rocks to-day
and federal and state officials made
determined efforts to salvage the cargo
of millions of dollars entrusted to Pom.
vi by thousands of investors in his
mushroom millionaire proposition.
Ponzi ate his breakfast in the Mid
dlesex county Jail in East Cambridge
the prisoner of the United States gov
ernment, in default of $4,000 bonds
Three officers of the Old Colony For
eign Exchange Co., rival concern OF
Ponzi's Securities Exchange CO., had
their morning meal in the Suffolk coun-
tv Jail, prisoners of the commonwealth
IN default of $4,000 bonds each Sam
nel Zorn, said to be an employe of the
Old Colony Foreign Exchange CO., was
Mt headquarters awaiting hearing on
a charge of larceny Of $500 from per-
sons unknown. He also had spent the
night in Jail
The three officers of the company,
who were held are Charles M. Bright
we'll, president and treasurer; Ray
nond Meyers, Office manager, and Fred
Meyers, sales agent. The Meyers are
brothers. The men were held on techni-
cal charges Of larceny of $500, from
persons unknown. Upon representation
OF Albert Herwitz, assistant attorney
general, that the concerns transactions
probably would be shown TO have
amounted to hundreds Of thousands OF
dollars, the bonds were set at high
figure.
Ponzi, whose bondsmsn surrendered
him yesterday TO the federal authori-
ties was confronted with the slterns-
tive Of remaining in federal custody or
IL he could find another. bondsman, of
being arrested again by the common
wealth under a blanket warrant isued
IN the municipal court charging him
with larceny in SO counts, totalling
1000. II was said that if Ponzi could
find another bondsman and elected TO
face the re-arrest by the state, a bond
of prohibitive figures would be asked
The authorities are determined that
the sensational finsncier shall remain
in custody.
The principal reason for the determi.
nation on the part of the investigating
officials was a desire to preserve for
Ponzi's creditors whatever assets he
may have and the fear that POM
might seek to dissipate or transfer
them il out on bail Edwin L. Pride
auditor of Ponzi's accounts, has placed
the latter's known liabilities at S.,
100000 and Ponzi claimed assets OF
about 100000. In this connection
Mr.. Pride said:
Il am inclined TO believe that a great
deal Of money collected by Ponzi and
his agents has been deposited in the
names of others. The results or a rig
orous examination Of Ponzis affair,
will speak for themselves"
After Money Transferred TO Mrs. PonEi
Referring TO the possible transfer oi
large sums Of Ponzi's 10 his wife, Mr.
Pride said:
1t can be taken away from her and
IL will be. II does not belong to her
" is money that was obtained undel
fraudulent pretenses TO be used foi
fraudulent purposes. In going sftei
what may be called PonEi's concealed
assets, we shall reach the lsrg'
amount transferred TO, or deposited il
the name Of. Mrs. Ponzi."
Ponzi withheld from his wife th'
news Of his surrender by his bonds
man He telephoned her before goinl
70 jail that he was remaining in Bos
ton during the night 20 SO over hi
books with an auditor. Mrs. ponzi re
asserted her faith in her husband HI
s honest she said, and ] will sta,
BY him 10 the end
The second petition that has beer
made 10 have PonEi adjudged bank
rupt vas pending in the federal court
to-day. The three latest petitioners
holders Of Ponzi notes for a total 81
ss.e25. ssked that two partners o.
Ponri. namely John s Dondsro of Med
ford and Guglieluo BertolIotti II Par
ma. Italy. also hs sdiudeed bankrupt
A petition for q receiver to admin
bier Pouzis affairs slso hss bssn fiel
b. oreditors-