New-York tribune., 1920-07-29
II. s. to Audit
Ponzii's Books:
Mob Gained
Boston Financial Wizards
Appeal TO Throng to
Shun Spectators Re-
suits i'm Big Ovation
"Hot Dogs for Clients
Many Made Rich by the
Scheme Form Alliance
to Aid Modern Midas
Special Dispatch to The Tribune

BOSTON, July 2S.-Surprises de-
veloped at every turn to-day in the
ponzi 80 PER cent in as days" puzzle.
United States District Attorney Gal
lsgher announced that he was going to
have the books Of the Ponzi company
audited for the government. Charles
Poazi, head of the company. who is
said 20 have made 100000 in few
months. calmed the excited mob clam
oring for money, many of whom had
been waiting before his Office since
daybreak, by ordering the free distri-
button Of hot dogs and coffee.
Incidentally, Ponzi, who made his
millions dealing in international postal
coupons. won many persons away from
their determination TO demand their
money back. He also caused a huge
sign to be posted IN full view of the
crowd warning his clients not to sell
their notes to the spectators circu-
lating in their ranks. The Sign worked
Ike magic on the crowd. for they gave
the financial wizard sn ovation as he
emerged from his Office to go to lunch.
A group of men who have been made
rich through the Ponzi scheme have
organized The Ponzi Alliance and
placed their wealth at the disposal of
the modern Midas should he need it,
They invite all persons who have been
benefited by Ponzi to join the alli-
ance.
Solvent and Yet Offender
Mr. Gallagher said this afternoon
be was not prepared TO say whether
the Federal audit would be made
jointly with the county audit ordered
b. District Attorney Pelletier of Suf-
folk County, noting only that under
present plans it would be conducted
independently.
Investigation may show" he said
"that PonZi is at least theoretically
solvent and vet al offender of Federal
law. He may be able 70 do ali he says
he IS doing and yet violate the law. ..
"As | ,old Ponzi the other day."
Gallagher continued. "he is either a
benefactcr deserving of the bless
ings of the public, officials and all
alike, or he should be in Jail. Ponzi
agreed 10 that. 1t goes without say
ing that if Ponzi IS solvent and has
violated no Federal statute the gov
ernment viii give him clean slate. 1t
also goes without saying that if he
has Violated the law Federal action
vii be taken against him."
The huge sign put up by Ponzi's
orders to-day read:
Beware OF spectators. Syndicates
Of m51c sharhs are buying up notes
OF tae Securities Exchange Company
Il premiums for the purpose Of
holding them and collecting 80 per
cert interest. They know all my notes
ei-l BE- paid. warn The public against
cisna as of she notes al = loss.
Fl nty everything in full.
Tine gu was posted because specula-
ter have been circulating among the
ha,f-c-4zel .VestOrs bidding Tor the
notes, fairly begging for them in fact,
ant n r0re than one instance practi-
ca..g browbcating the distressed for
esrs nto letting them mo. They
would even carry their soliciting right
up - the doors of P0n1i's ofifa. Il is
es-lmatea nat th-se spectators have
Feape1 g arvesC, as practically every
or ,7-day seems to think PonZi Will
keeq bis Hoed TO the letter.
Given Ovation by Crowd
The ovation given Ponzi by the
crowd to-day showed more clearly than
words wna- q tremendous hold he has
er the favor Of his people. His Won
derig. personal magnetism explains it
in part and the rest may be found in
the iei9re to show the slightest wrong
in hi dealings Another factor might
vel be his oft expressed desire to
share large part OF his wealth with
the less fortunate.
Penzi has estiroted his total la
bilitie- at 10000. He says he has
$4,000 900 IL this country and abroad
10 meet them. Pouzi came to this
country few year ago with only
$3.50, and dutll a few years ago had
been an export clerk.