New-York tribune., 1920-07-30
CustomersWho Lose Faith
in Financier Get Their
Money Back; +; EXP Part
ner Asks Million Profits
Coolidge Orders
An investigation
So-Called Wizard Defes
Government to Learn
Secret of Operations

BOSTON, July 29.-Clerks in the
modest School Street Office of Charles
fonzi' the $50 per cent in forty-five
days magician, spent to-day pouring
cash into the hands of customers who
had lost faith in his international
postal exchange scheme.
1t was after o'clock when one of
Ponzi's attaches put his head out Of
the door and shouted to the crowd;
Anybody else to-day?-s
While no statement is forthcoming
as to the amount of money The Ponzi
once turned back to the customers. it
Is, IS estimated the total must be about
?poV,ooo; The cash was brought from
the banks by the so-callcd "wizard's''
employees under heavy guard.
new attempt was made to-day to
tie up Ponzis stock in the various Bos-
ton concerns, all acquired since he
launched his first venture last fall
which Is said to have brought him a
proilt OF Se,000,O00. These interests in
GUIDED large holdings in the Hanover
Trust Company.
Ex-Partner Asks Million
Joseph Daniels, who says he is a
former partner of Ponzi's' is sool;nu
TO collect $1,000 900 as his share of the
profits IN Ponzi's deals in international
postal coupons. Daniels recently filed
a blll IN equity against the Italian. In
ms amended motion to-day Daniels
says ne was to share equally in the
p'oii's' ana he seeks 10 enioin Pon2i
ana the defendant orpofations from
selling, transferring or otherwise dis
stool.
final decree. Judge Wait issued an or
der of notice to Ponzi on the amend
ment, returnable Tuesday, when Ponzj
Is asked to appear.
Inc i!nancier was at his office but q
short time to-day. He did not arrive
until shortly before II o'clock. 1t was
al exciting forenoon for the thrones
outside. Countless rumors were cir
culated that Ponzi had disappeared
But ne hadn't. And upon his arrival
the outpouring Of cash to the anxious
ones began. The crowd cheered him
wildly.
Ponzi said to-day he intended to open
an office in New York City imma-
diately. He added that there is s3O.-
100000 or S40,0OO,000 more TO be made
out Of this scheme, but it must be made
quickly" Since difficulties have arisen
here, he says, he will have to go out
SIDE New England for the money he
needs He said he feared the postal
conference would put an effective
check to his operations. He added that
he "mean5 business" when he said he
would open up in some OF the larger
cites OF the country.
Rival Continues Business
The Old Colony Foreign Exchange
Company, rival of Ponzi's EXCHANGE
Securities Company in Offering so per
cent profit in forty-five days, was per
mitted t, continue business after q
conference this afternoon between Dis
trlct Attorney Pelletier and its prcsi-
dent, Charles B. Brightwel The lat
ter said to might he was sorry the i'm
preston had gone abroad that his
company was initiating Ponzi's. He
explained that while his company has
undertaken to deal in postal COUPONS,
as has Ponzi's, it is only an incidental
phase Of its business. It's chief deal
lngs, he said, are in foreign goods.
iie added that "thc proceeds thus far
nave been so enormous as to fully war
rant the pledge of so per cent in fortv-
five days" He pointed OUT that
whereas Ponzi issues notes, his com,
pany is selling stock.
Ponzi to-day defied the government
TO learn the secret of his operations.
Il am in the business to make
money" said he. ethics do not in
terest me any more than it interests
banhers. These coupons are used as
currency in Europe. My secret is how
| cash the coupons. do not tell it to
anybody Let the United States find it
out if it can"
Governor Coolidge has interested
himself in the case He instructed
Attorney General Allen to Secure all
the facts" and take whatever action
seems necessary.
Whether the audit Of Ponzis books
has begun the District Attorney would
not say. 1t is known that Ponzi's
bookkeeping consists of single card
filing system, the cards carrying the
customers names and addresses, the
amount of their investments and the
date received.
Attorney General Alien, District At
torney Pelletier and Assistant United
States Attorney Gallagher are conduct
ing an Investigation