Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-14
Bank, Allied With
POnzi Trust, Closed
Continued from Pase One

orous examination OF Bonzi affairs
will speak for themselves"
Referring to the possible transfer Of
large sums by Ponzi to his wife, Mr..
Pride said:
"It can be taken away from her and
| it will be. It does not belong to her.
1t is money that was obtained under
| fraudulent pretenses, to be used for
! fraudulent purposes. In going after
what may be called Ponzi's concealed
assets we shall reach the large amount
transferred to or deposited in the name
Of Mrs. Ponzi."
Wife Still Loyal
Ponzi withheld from his wife the
news Of his surrender by his bondsman.
He telephoned to her before going to
| Jail that he was remaining in Boston
| during the night to go over his books
with an auditor. Mrs. Ponzi reasserted
her faith in her husband
He is honest" she said, land I will
stay by him to the end"
The second Of the two petitions that
have been filed to have Ponzi adiudged
bankrupt was pending in the Federal
Court today.
The three latest petitioners. holders
! of Ponzi's notes for a total Of S2625.
asked that two partners of Ponzi,
namely. John s. Dondcro, of Mcdford,
and Guglielmo Bertollotti. Of Parma,
| Italy. also be adjudged bankrupt.
A petition for receiver to administer
| Ponzi's affairs also has been filed by
| creditors.
Examination Of the books of the
! Hanover Trust Co.. which was Ponzi' g
chief depositary and in which he was
stakeholder and director, was continued
| today by members of Rank Commits
sioner Aliens staff. Mr.. Allen, who
closed the Hanover Trust Co. last
| Wednesday. in a statement intended to
reassure depoSitors in that institution
and in other trust companies, said:
Nothing has developed so far to
lead me to believe that the depositors
will lose one dollar. The Hanover
| Trust Co. is the only trust company In
New England that is involved in
Ponzi's failure
Run on Trust Companies
The financial district was concerned
yesterday when a small run was made
Oh several trust companies. due, II was
said. to reports that other financial in
stitutions would be involved in Ponzi's
affairs. There was no indication today
of a continuance of Withdrawals In
other than normal quantities.
NIT. AIIPH mas 'uuStN llc NNult
to be placed on all safe deposit boxes
in the Hanover Trust Co. used by Ponzi
or officers or employees Of the bank. He
said this was done as a precaution
against the possible removal of securI-
ties or other valuables pending the
settlement Of the institutions affairs.
The attorney generals Office has been
engaged in a study of the legal statutes
to determine whether action may be
taken to compel all persons VINO had
| cashed their notes on Ponzi, matured
and unmatured. to turn the money
back into a common fund for equal
distribution among all noteholders.
The arrest of Brightwell and his
associates came as part of the extensive
investigation by the authorities OF
Ponzi's affairs and of other companies
offering high rates of interest on In
vestments. The Old Colony Foreign
Exchange Co. was organized July 10,
under n deed Of trust. with Rrightwell,
Raymond Meyers and Funnar z. r.
| Indblad, of Sweden. as trustees. They
offered to pay 100 per cent in six
months on Investments and claimed TO
be dealing in foreign merchandise. At
torney General Allen said that he knew
that the company had sent large sums
abroad.
Brightwell Threatened
The Office here was closed after a
frenzied run yesterday, the like OF
which was not seen during the widest
days Of the run on Ponzi Offices. Doors
and windows were smashed. threats
were made against Rrightwell and a
detail of police was required to handle
the crowd when the announcement was
made by the company that payment on
notes would be suspended until Mon
day.
Rrightwel was ordered by the
trustees of the building on Devonshire
street. in which one Of the company's
offices was located. to vac8te within an
hour and a half. shortly afterward
the Offices were closed and the arrests
were made.
Dispatches from Philadelphia, Provi
deucp, Fall River. Springfield, Law
renee. New Bedford and Haverhll told
of the closing in those cities of branch
offices of the company. or Investigations
under way with a view to closing them.
Lynn, Mass, Aug. 14.--(By 4. PO
The local office of the Old Colony
Foreign Exchange Co. was surrendered
by the management today TO Assistant
District Attorney Edward r. Flynn
and Inspector John T. Curry. who i'm
mediately started an examination OF
the accounts. They acted by direction
of Attorney General Allen.
ppOpE rhpITnI EIPMc