Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1920-08-21

ard is ffCcu-AulhltS Aic S'oh '"'
Debts. -! :
Boston. Aug. 12.-Somc 10000 in
yCstCrs intruStcd II total of VarlouSly
estimated at from Sl5,00o00o TO $50,
100000 to Charles Ponzi in money
making scheme which postal officials
today declared to be absolutely I'M
possible of fulfilmcnt.
Ponzi surrendered to the Federal
authorities today explaining that he
was unable to meet his obligations
because of the closing yesterday of
the Hanover Trust Company where
the bulk Of his funds was deposited
He was arrested charged with having
used the mails to dcfraud. arraign
cd and held in bonds Of $4,000 for
Il hearing August 10. Morris Rs,dnick.
Il real estate dealer, furnished the
securities.
Meantime n warrant charging the
Italian with larceny had been obtain
ed by the State police, and upon lcav
ins the Federal building, Ponzi was
rcarrcstcd aud held by the City
Court in $4,000 bail for appearance
August %. Rudnicl1 again went on
PUnZi'S bonds.
WARRANT CHARGES, LARCENY
Developments followed thick and
fast today. AS PonZi WAS being ar
raigncd before United States Com
missioner Hays, Edwin l.. Pride who
is examining the books of tho Sccur
tiles Exchange Company for the Fed
oral authorities announced it had al
ready been shown that Ponzi owed
$7.000,000 State Acknowledgement Al
len, who Is conducting n separate in
vcstigation made known his opinion
that Ponzi's liabilities would run In
IT, Tie millions.
MANY ANXIOUS INQUIRIES.
State bank Examiner Joseph G. Al
len issued Il statement declaring the
capital Of the Hanover Trust Company
Of which PonZi until yesterday was
Il director was seriously impaired
and probably wiped out. state Treas
ucr l}nrrcll attacked the bank com
missioner for not having given him
opportunity to withdraw state funds
before the Hanover was closed. and
Governor Coolidge demanded that
Rnrrcll make known how much Of
tic States money had been tied up
by the closing Of the trust company
Later Burrcll notified the Governor
that the State deposit was $l25,00
PonZi'S field appears 10 have in
cludcd New England and New Jersey
The line that formed daily i'm =. Al
Icy at the rear Of PonZi's School
Street office. appears to have been
Far from representative Of his clients.
This was made up largely Of foreign
ers. who were moro interested in
getting their money than in protect
ing their regulations as wise spccu.
latOrS.
Anxious inquiries at the newspap.
CT offices and fcvcrish conversations
i'll downtown restaurants indicated
IL at the proprictors OF small business
professional men and women.
clerks and stenographers by the thous
and, accepted the bait Of $50 per cent
profit in fortyfive days Agents work
ing in offices and factories interested
large numbers, particularly among
the Italians.
The mystery of Ponzi's methods
added to the attractivcness Of his
promises. 1t is said in many cases
the possibilities Of profitably eXchang
ing American dollars for French
frances for Italian lire, and the latter
for something else seemed plausible
enough without a clear compr ch ension
of just how the thing worked out.
INSPECTOR KNEW SCHEME.
Among the amazing disclosures
was that the bulk of PonZi's millions
We're gathered in after the Post Office
department had begun its invcstiga
ton last Feb. In discussing tho
PonZi case tonight, Chief Post-Offict
Inspector Hal. b. Moseby said so fan
as their investigation had gone, Pom
ri had never done any business in il
ternational reply coupons. He said
he had warned hundreds Of people
against PonZi when inquiries begar
to come in last February that no mar
or set of men could manipulate OF
speculate in international reply COZ
pons in any such manner as they al
legged PonZi had explained to them
In a formal statement issued later
Mr.. Moseby said:
ut has been my great desire fol
Sometime past that Tonzi should BIZ
brought to account and his scheme
laid bare and never for a moment
have I believed that he was solvent
but that in the end he would BIZ
shown shortly have sufficient evidence
million. Within tho past few days
having felt sure that we had O,
would shortly have sufficien evidenc,
at hand upon which to arrest POM
and to make sure that he could b.