The evening world., 1920-08-14

who are certain 70 be involved
IN the case or account Of the
heavy deposits Of commonwealth
funds IN the suspended Hanover
Trust Company, through which
ponzi conducted his negotiations
The knowledoe that politicians
were propitistted by improperly
secured notes from the bsnksj dis
closures that certain policemen in
= Aha, italian neiahborhoods got =
lsnae share Of the early "diVi-
dends" and psrsistentiy used their
influence with the people 10 re-
assure doubts as to Ponxi's sound.
ness.
incidentally State Treasurer BUR
rell is criticised for carrying on
bank advertising business with banks
I'm which his department did business
esss a depositor.
eoNZI AT END OF RESOURCES,
HE ADMITS.
Meanwhile Ponzi, according to his
statements 70 Daniel n. Coakley. chief
. OF the battery Of lawyers who arc de-
j. tending him. ls broke. the t5.soO,OOO
he had three weeks ago having been
paid out TO investors and the remain-
ing assets, including the t1,5OO.OOo
certificate OF deposit in the Hanover
S'Ttust Company, being either In the
control OF others or in tho hands Of
banks that dare not, in the face OF
mo bankruptcy proceedings as. st
-ohlnl, allow him the use Of a dollar.
faRlcHTWELI'S COMPANY is
10 THROWN INTO BANKRUPTCY.
oss Charles NJ. Brightwell, President OF
o,the Old Colony Foreign Exchange
Company; another ofiioial, Raymond
~. Myers and Gunnar n. A. Dndblal,
wore petitioned into bankruptcy in
the United states District Cour: to-
day by three creditors Brightwen
and Myers, arrested yesterday, are In
the Charles Street Jail. while Lind
blad e reported en- route TO France.
'rhe petitioners are Karen Larsen of
Aedford. Edgar Peterson OF Somer-
VILE. and Mary Lujts Of Medford.
Throughout New England to-day
All those who have been playing tho
public for easy money are frautiaally
trying to put their houses in OrIer in
anticipation of visits from policemen.
The sudden swoop OF the police on
che Old Colony Foreign EXCHANGE
e'Company. the falling of it's officials,
"tha closing Of eight OF Its offices and
ne promise of other arrests to-day
together with the collapse OF Ponzl
have thoroughly frightened those
usually suave gentlemen.
james L. King, manager of tho
Providence Branch Of the company,
and his assistant, Arthur w
Thompson OF Bonton. were arraigned
= f. a. 49,
10 alleged that officials of the Old
Colony Foreign Exchange Company
were planning to leave the State.
hence the sudden arrests.
Information was given to-day TO tho
effect that Brightwell's operations ex-
tended TO Now York City. where on
ees were opened. in addition to offices
in Lawrence, Fail River. New Bedford,
Haverohlll and Maiden.
II In further stated that Brightwell
agents giibly spoke OF themselves as
representing the Old Colony. thus seek
ing 70 create the impression that they
were employed by the Old Colony Trust
n Company. BriEhtweIl !s said to have
had about $50 sub-agenta who re-
ceived commits ranging from 10
per cant upward.
PoLIcE SEIZE A 17sooo CHECK
SIGNED BY BRIcHTWELL.
In connection with the arrest OF
the officers of the Old Colony For
eign Exchange Company the police
announced to-day the recovery OF a
= certified check for $75, 900, drawn by
Charles NJ. Brightwe1l. as President
Of the company TO his own order and
indorBed by him. The check was
dtalwn on one OF the national banks
hero The police declined to say in
wbose possession II was when they
Ooi1ed It.
Search was made TO .dRy for cash
or securities OF the value OF 800. 900
which the police say they had been
informed had been deposited in bank
vaults for the company Officers OF
the company. according 70 the police,
were silent regarding the disposition
of the funds. An examination OF the
., books. hastily made. was said TO show
a business OF t20o. 900 since the come
pany began operations.
Samuel Zorn. an agent for the Old
Colony Foreign Exchange Company,
VINO was arrested last night, pleaded
not guilty to-day 20 a charge OF lar
ceny OF $500 and was released under
$1,000 bonds- He said he had been
-iworlrng for the company only two
aneays.