Republican farmer., 1920-07-30
Ponzi Has to Remove His Office to Another Place in Order to Pay Those Who Had Been Promised so Per Cent. Interest in AS Days No Flaw in His Scheme Yet Found.


 Yet Found.
 Boston, July 2S-Boston is still wild over the financial operations of Chas. Ponzi, who has cleaned up several millions of dollars in the last few months and there have been several near riots in and around his office on School street in the past few days as people who had his notes, fright ened by the publicity which he has received and fearing they would lose their money, demanded payment.
 Thus far there has been found no flaw in Ponzfs scheree which prom ises to pay 50 per cent. for the use of money for 45 days and Ponzi is paying all the claims in full
 Meanwhile, an application was made by one of Ponzi's creditors in cefvership for the Ponzi concern, and temporary injunction restrain ing Ponzi from drawing on funds on deposit in several banks here.
 Judge Watt declined to grant the temporary injunction, and the appH- cation for a receivership was there upon withdrawn
 Judge Waits decision to withhold temporary action against the firm fol-
  en, appearing for Ponzi, that Ponzi and his firm meeting all obliga- lions, and that Ponzi declares his ability to meet them in full.
 Secret selection of an auditor to :. investigate the affairs of Ponzi, the newest financial wizard" whose promise to double your money with in ninety days has set Boston wild; a near riot in the School street offices of the Securities Exchange Co., in which four women, exhausted by hours of frantic endeavors to reach the inner offices to collect their money during one of the periodic at tempts of the crowd to force entrance to the rooms; the injury to several men in the crowd who were cut by flying glass from the doors when they attempted a wedge formation to force their way inside, and a con stant1y growing demand for repay ments of credits, marked the day's developments in the $S,500,O00 finan- cial sensation.
 District Attorney Joseph C. -Pelle- tier announced today that he had ap- pointed an auditor to examine care fully into the standing of Ponzfs business venture, but declined to make his name public until tomorrow. Pelletier refused point blank to an swer any questions as to why he con- cealed the name of the auditor, or to speculate comment in any way upon the case
 Shortly before the news was an- nounced of the appointment of an auditor a crowd of persops who had invested money with Ponzi, most of q whom were Italians from the North End colony, rushed his offices, fore ed admittance, and gave the police a merry time before order was restored.
 T, ing the luncheon hour when a flying wedge of creditors jammed the doors of Ponzi's office. A squad of seven policemen fought their way through and threw them, yelling, from the of fees. Then followed minute fight to clear the corridors,
 So many creditors appeared at the School street offices that Ponzi took over the ''Bell-in-Hand," famous for years a barroom in Pie Alley, and transformed the place into a tempo rary office. There applicants for re- turn of loans were received, their ap- plications checked, and those approved paid from a hastily constructed cash aer's booth within the exit doorway.
 At least a thousand claims were set tied yesterday before the business closed, actual cash on hand in Ponzi's offices had been exhausted, and clerks were giving out bank checks. There
 
 for withdrawal at the end of the in- terest term, or from those desiring tC surrender notes and receive the face value of the original investment.
 At the close of business yesterday afternoon, Ponzi prepared and gave out the following statement to the press:
 "In conformity with my agreement made with District Attorney Pellitiel on Monday, I have, in so far as 1t wa! humanely possible with the clerica force on hand, paid every obligation presented at my office today in tn, form of notes issued by me during tn, past 45 days. All of the notes whicl had matured were paid at their fac, value. All notes which had not ma tured were redeemed by me for the original sum. This was in accordanc, with my advertisement in the papers
 "The amount paid out by me durin, the day amounted to several hundred thousands of dollars. I shall continu payments tomorrow on the same basis and every day until all of my obliga tions have been presented.
 'I learned early in the day tha spectators were purchasing note that had not matured from people il . line, for the purpose of holding tn notes until maturity and collecting il full. with 50 per cent. interest. Whil have no control over these notes which are negotiable, l reel that should call the attention of the publi to this attempt to speculate on thei holdings and let them see the incon sfstency of giving profit to none sharks who are willing to gamble o the nervous tension of the public" ' United States District Attorney Dan ael J. Gallagher yesterday issued tn following statement as coming fror Ponzi, in which Ponzi himself eS platned the methods he was using i < order to double money in 90 days:
 The method is the conversion ( American money, first into depre ~ sciated foreign currency, no matte what 1t is; or the conversion of fol eign money, not appreciated, into fo1 eign money that is depreciated. I al " making this statement because q