New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-13
POnzi Is Under
Arrest; Asserts
He Cannot Paw
CONTINUED from page one,

BY United tSates District Attorney
Gallagher in statement Immediately
following Ponzi's arrest.
Ponzi, who for two weeks had been
Followed by crowds hailing him as a
financial wonder, was turned over to
United States Marshal Duane.
Mr.. Gallagher introduced Ponzi to
the marshal, and said:
Mr.. Ponzi surrenders to the United
States government. He consents to be
held until his release. A complaint is
being made out"
Ponzi Appears Detected
Ponzi remained seated in Marshal
Duane's private Office while the warrant
formalities were being completed be-
fore Commissioner Hayes, and he
waited there, silent, and gloomy of
countenance, with shoulders hunched
forward in detection while bail ar
rangements were being made.
inc civil warrant, charging Ponz
with larceny, was granted in the war
rant sessions of the Municipal Court
within half hour after the surrender
to the Federal authorities. Following
ms release on bail on the Federal
charge. Morris Rudnick, a real estate
man, furnished the necessary securi-
ties to bail him on the larceny charge
AT police headquarters Ponzi was pho
tographed and his finger prints taken
The state warrant alleged larceny of
$40, and was issued on the application
OF Assistant Attorney Generals Abbott
and Hurwitz, and Captain Armstrong
o. the bureau of criminal investigation
of the police department.
Following Ponzi's surrender to the
government Mr.. Gallagher said
In a conference Monday with post
office inspectors and myself, Mr. Ponzi
said that Friday he would show assets
to cover all his liabilities.
Pressed to-day, he said he would be
unable to do what he had promised
and, therefore, surrendered. l feel that
the case against him is complete"
Commissioner Hayes appointed a
hearing on the Federal charge cor next
Thursday. For the state charge, the
hearing is to be on August %.
The rivalry between the state and
the government for the first Ponzi
arrest developed the keenest competi-
ton as noon approached. There was
activity of an almost hysterical nature
State House. Captain Armstrong, of
the Bureau of Criminal Investigation
fastened back and forth between police
headquarters and the State House
holding secret conferences at the latter
place with Attorney General Allen
But hustle as the state authorities
cid they lost out in the race for arrest
by fully half hour.
A receivership for Ponzi's affairs
was petitioned for in the United States
Court while the arrest was pending.
The action was brought by one of the
three note holders who sought bank
ruptcy action several days ago. The
petitioner, James j. Fernald, claims to
be creditor to the extent of $3.50
Both suits await action by the courts
after Ponzi's arrest:
"Ponzi's liabilities will run into the
millions. The investigation begun by
this office already shows that they are
in excess of the 100000 estimate made
by Ponzi, and at the present time there
are letters from 500 noteholders in my
Office which we haven't had time to
open yet. More are coming in every
minute, through the mails and brought
in by their holders"
The rush of Ponzi noteholders to The
Attorney Generals office following the
wizards" arrest fairly overwhelme ID
the staff The holders were of all
nationalites and of all conditions of
4i1S, many NSSio1lHS IiidV lHSy IdU
placed their last cent with Ponzi in
hopes Of swelling their life savings. to
substantial proportions.
Many pleaded with tears in theil
eyes for some word of comfort. None
of course, was possible.
Ponzi is "hopelessly insolvent," &C.
cording to the official report of the
Federal auditor, Edwin !. Pride, as in
terpreted by United States Attorney
Gallagher to-day. Mr.. Pride's report
was submitted to the District Attorney
this afternoon. Soon afterward Mr.
Gallagher issued the following state.
ment in regard to it:
"Mr. Pride made partial report to-
day that Mr.. Ponzi's liabilities are up
wards of 100000 and that Mr.. POM
has made statement to Mr. Pride thai
his assets will not exceed 100000
"Mr. Pride further states that, owing
to the fact that great many notes are
being sent to his office, of which he
had no record that such notes were
ever issued and the fact that there are
more cancelled notes to be returned
for which he should give Ponzi credit