Arizona republican., 1920-08-14
More Sensational Disclo- sures Follow Investigation Of Ponzi Interests; Four Under Arrest
LRepubIican A. p. Leased Wire

whose spectacular financial dealings have made his name known the coun- try over, was surrendered today by the man who furnished $35,000 bonds for his release yesterday after his arrest by the federal authorities Unable to find another bondsman, Ponzi was taken to the Middlesex county jail.
 Three officers of the Old Colony For elgn Echange company were arrested taken into municipal court and held in $5O,O00 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 M. Brightwell, president and treasurer of the concern; Raymond Meyers, office manager, and Fred Meyers, sales agent. They pleaded not guilty That the activities of this com pany might have rivaled in extent the dealings of Ponzfs Securities Ex- change company was intiTnated by Al bert Hurwitz, assistant district attor- ney, when he told the court the amount involved in it's transactions probably was hundreds of thousands of dollars The three men will be given a hearing on Aug. 24.
 Samuel Zorn, said to have been em- ployed by the company as a agent, was arrested at his home tonight on the same charge as the three officers of the concern. No bail was fixed and he was locked up for the night.
  Further criminal proceedings were taken against Ponzi today. In the mu nicipal court blanket warrant was issued charging him with larceny in 53 counts, totaIling $24,0O0. The munich pal court charges were held in abey ance as Ponzi went to jail on the fed eraI warrants. Further bankruptcy proceedings in which partners of Ponzi were men, toned were brought in federal court | f@ra11 1<ar-e- Ponzi's notes for $2625. They asked | that Ponzi and John S. Dondero of Medford and Guglielmo Bertollotti of Parma, Italy, named as partners in the Securities Exchange company, be ad- judged bankrupt. Rumors were current tonight that | further developments bearing on 'get rich quick" schemes might be ex- pected in the near future. but there was no hint as to their nature.
 No Bank Crash Expected
 Joseph C. Allen, state bank commis- | sioner, said that he knew no founda- | tions for reports that Ponzi's crash | might involve any banking institutions except the Hanover Trust company, which was closed. Pof1zf was a direc tor in this bank, through which he checked out millions of dollars.
 Mr Allen made known today he had | caused the state seal to be placed on all the safe deposit boxes in the Han |
  officers or employees of the bank. He said this was done as a precaution against the possible removal of se- curities. State Treasurer F. J. Burrell refused to make any statement regarding the S125O00 of state funds on deposit in the Hanover Trust company.
 The arrest of officers of the Old Col ony Foreign Exchange company came after a frenzied run by note holders upon the company's offices on Devon shire street One result of this run was an imperative notice served upon President Brightwell by the trustees of. the building to vacate his quarters within an hour and a half. Shortly afterward the offices were closed
 Old Colony Exchange Closed
 More than a hundred note holders were in the exchange company's outer office when a man emerged rom the inner office and announced that py order of the district attorney no pay ment on notes would be made for three or four days.
 Brightwell said later that this an- no,1ncement was erroneous as far as mention of the district attorney was concerned, but that the company nan decided 10 suspend payments teihpoi- ariIy on advice of it's attorney.
 The announcement brought loud cries from the waiting crowd
 We want our money, several or them demanded
 There was a rush toward the inner office. Guards struggled to keep the people back. Threats were made agalnst BrightweI.
 sTn break his neck" one man shouted. .s. and inc doors were locked. The crowd remained in the hall and surged against the doors until the glass was broken
 Through the broken doors some one
 4f,.o 1rrr1y D. rin making payments at another office.
 s.It,s a lie" man shouted. we were there and they locked the offices up. We want our money.
 Ponzi Debt S8,o00 900
 Ar hour later the Devonshire street offices of the company were reopened and nayment of principal on unmatureo notes was resumed. The notice to va cate came and again the offices were Closed notice posted on the doors aid further payments would be made ano+her office beginning Monday 6,,t no payments would be made to- morrow. ,.4.,.... s+iI1 undetermined. Edwin L. Pride .ba auditor engaged by the federal au- tto-ities to go over Ponzis accounts eaid today that although his work was o+ vel finished, he had found liaDlnties totalling sS,00O,0OO and that Fonzl nae to1d him that his assets amounted tS Before Ponzi came into the city from
 1.,o,,a in Lexington today he was naTene ea5 and smiling and talked calmly .sitL newspaper men. but when he wa' hronpht by his bondsmen to the 1edera jY5ine and learned that he must g' to iaiI his smile vanished
 Old Colony New Company rba Old Colony Foreign Exchang
 nnanv was organized on July 10, last cIa,- deed of trust, with C. $. Bright uhueA pa1,roond Myers and Gunnar E meI IIindblad of Sweden as trustees. It k. l1i'le nffices were in the building o1 tEasooI street where Ponzfs office were located. While the run run on only'an Tonz n waS S..l5 = men at it's doors to make an sta,rors9ents s,i'cements of it's business and try try noulie investors from among Ponzl tContinued on page ?