The Washington times., 1920-08-04
PONzrS RUN
TOLAST LONG
Record Crowd at offices Of
Boston ncier-NoiehoId-
ers Number Is, 900.

BOSTON, Aug. 4.-Developments in
the Ponzi financial mystery. said tc
be approaching crisis. followed
each other rapidly yesterday. The
more important were:
1-sAttorney General j. Weston Al
len announced that he may demand
an accounting of the assets of
Charles Ponzi. of the Securities ,I;X-
change Company, and appointed
Samuel Spring, an authority on Grim
inal law. as special attorney general
TO investigate.
2-The largest crowd since the be
ginning OF the run on Ponzi showed
payment on notes.
3-Ponzi issued a statement saying
he neither knew tho amount of hts
liabilities nor cared. as he had plenty
OF money to meet them.
4-Ponzi brought suit for s., 900
, against William II. McMasters, hts
former publicity agent, in an action
d of contract, naming the Post Publish
ing Company as trustee. McMasters
sued Ponzi for $4,000 for services as
publicity agent, naming the Hanov'r
Trust Company as trustee.
URGED TO STAND BY PONZI.
5-Circulars calling on the public
TO stand by Ponzi, signed by w. o.
Souther, Jr.. of Cohasset, were dis
tributed among the throng in Pi al
ley. Mounted police broke up the
crowd in City Hall avenue that
gathered about Souther, who threw
his circulars into the air after being
ordered to depart.
6-The outer doors of the office of
the Securities Exchange Company
were closed about o'clock when
twenty-five note holders were inside
and a number waiting outside.
Mounted police supplemented the
regular patrolmen In keeping the
long line in order. while some of the
more shrewd were showed along from
time to time by strong arm" men
to whom they had paid So and SO.
1t was pointed out that at the rate
at which payments were being made
by Ponzi today, about twenty an
hour, it would require months to take
care of all note holders, said to num-
Der now about 25,00U.
Ponzi stated that he had paid out
S51S.522. so yesterday, bringing the to-
tai payments since the run started
last Tuesday, up to between $4,000
600 and S4.5OO,O0O. "a -
PLANS HUGE COMfANh.
With his smiling face only four
feet from the cashiers window that
depleted his treasury at least half a
million more today, Ponzi outlined
to newspaper men vast plans for the
future. They make his current pro-
ject, now under investigation by a
score of Federal and State ofcials,
look like a medium for earning pin
money.
A chain of banks, group of
steamship lines and a worldwide i'm
port and export firm, all directed by
Ponzi, were forecast in a mild, con-
versational tone. Initial capitaliza-
tion. Ponzi said, will be for $780,
100000 and that will be increased
rapidly to 5000, 100000. He hinted at
tremendous cooperative profits.
Ponzi declared he has cash assets
of 1900, 900 he can lay his hands on
at once.
The day. for the crowd around
Ponzi's office was eniivenej by the
distribution of thousands of printed
circulars, purporting to be signed by
a former member OF the Massachus-
etts Legislature. now a selectman
and member OF the Board of AS
SCISSORS of a nearby town.
"A thief doesn't give you your
money back" the circular read in
part. 81 have no money invested
with Ponzi and have never met him.
But he is manifestly a friend of the
people, fought bitterly by great
interests. / warn investors not 20
. be stampeded into Withdrawing their
money"
The scramble for the circulars was
so great that mounted policemen
charged the throng. Several persons
were knocked down. states At
torney General Allen announced this
afternoon that he has appointed
Samuel Spring, an attorney said to
be an authority on investment law,
to investigate Ponzi's affairs as soon
as the Federal audit is complete.
None Of y seems to afrect Ponzfs
peace of mind. There are two words