The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1920-08-20
JAIL DOORS SHUT
BEHIND F|NANC|ER
CHARLES PONZI AND THREE Ac-
cEssoRIEs ARE ARRESTED BY
FEDERAL AUTHORITIES
SECOND COMPANY SUSPENDS
AIso Charged With Larceny.--6ond OF
Officials 10 Fixed at 1000, and
Men Are Jailed When Bonds
men Are Not Forthcoming

Boston. Aug. 14.--Four men who
have accepted millions Of dollars from
New England Investors In the last few
months. on promises OF payment OF
fabulous interest, are behind the bars
today.
Charles Ponzl, whose spectacular H.
nancial dealings have made his name
known the country over. was surren-
dered yesterday by the man who fur
nished $4,000 bonds for his release
Thursday after his arrest By the fed
eral authorities. Unable 10 find an
other bondsman. Ponzi was taken to
jail.
Three officers OF the Old Colony
Foreign Exchange company were ar
rested. taken into the municipal court
and held on $4,000 bonds each on a
technical charge of larceny OF $500
from persons unknown. In default Of
bonds they spent the night In jail.
They are Charles NJ. Brightwell, presi-
dent and treasurer Of the concern !:
Raymond Meyers, office manager and
Fred Myers. sales agent. All three
pleaded not guilty.
Samuel Zorn was arrested at his
home In the Dorchester district last
night on warrant charging larceny
Of $500 from persons unknown. This
was the same charge upon which the
three officers Of the Old Colony For
elgn Exchange company were arrested
earlier In the day.
That the activities Of this company
might have rivalled In extent the deal
ings Of Ponzi's Securities Exchange
company was Intimated by Albert Hur-
WITT, assistant district attorney OF Suf-
folk county. when he told the court
that the amount involved In the trans
actions probably would be shown to be
hundreds OF thousands OF dollars. II
was upon this representation that he
asked that the bonds be set mt high
figure. The three men VIII be given
preliminary hearing on August ~.
Further criminal proceedings were
taken against Ponzi yesterday In mu-
niclpal court blanket warrant was
issued charging him with larceny In
63 counts. totalling $24.OOO Police In
prepared TO arrest Ponzi II the federal
authorities released him again ON ball.
but as he was taken to jail the mu-
nicipal court charges against him were
held In allegiance.
Further bankruptcy proceedings In
xxft al nt. Far th.. fir.f -
ponzl We're mentioned. were brought In
the federal court. The three petition
ers We're holders of ponzis notes for
u total OF SECS. They asked that
Ponxi and John y. Dondero. of Med
ford. and Guglielmo Bertollotti. of
Parma, Italy. named us his partners
In the Securities Exchange company.
be adjudged bankrupt.
Rumors were current last night that
further developments bearing on get
schemes might be expect
ed In the near future. There was no
opments.
Joseph c. Allen. state bank commits
sloner. said that he knew OF no foun-
dation for the report that Ponzis
crash might Involve any banking insti-
tutions except the Hanover Trust CON-
sioner. Ponzi was director and
In this bank. through
which he checked out millions of dol.
lars
The arrest OF officers OF the Old
Colony Foreign Exchange company
ers upon the company's offices on
pevonshire street. One of the re-
suits of this run was an imperative
notice served on President Brightwell
by the trustee Of the building To vacnte
his quarters within half hour Short.
Mere than 100 note holders were In
the Old Colony Foreign Exchange
compans's outer offices all forenoon.
The announcement that payment had
been suspended brought loud cries
from the waiting crowd.
We want our money" several /
shouted.
There was rush toward the inner |
office. Guards employed by the con.
Germ struggled TO keep the people back. |
Threats We're made against Brightwell. |
Finally the guards succeeded In |
clearing the offices and the doors |
were closed and locked.
The company announced payment 10 |
notes would be resumed Monday.
Ellie Protest for Murder