Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1920-08-19
MIR. PONZI MUST
PRODUCE S5,OOO,OOO
Sum Represents Amount Not Returned
When Bubble Burst

Boston, Aug. 16-Five millions of dol
lars was set to-day as the probable
amount of the public's money entrusted
to Charles Ponzi and not returned by him
before his quick-riches bubble was burst
last week. Edwin l.. Pride, the ac-
countant who is undertaking the federal
audit of Ponzi's accounts, explained that
his preliminary report of liabilities ag-
gregating 100000 was based the face
value of the unredeemed notes issued by
Ponzi. for fifty per cent profit in
ninety days. The actual money repre-
scented In these liabilities he said, would
be between A,5oo,ooo and 100000.
What proportion of the debts of the
discredited fnancier are covered by his
available assets was still In doubt on
Gals of the State and federal jurisdic-
lions, pursuing independent investiga-
tions. said they were unable TO say how
nearly correct Ponzi's statement that he
has 100000 in ready assets would prove
to be. Should he be able to produce such
a sum. the public loss would be rela-
lively small. but it was pointed out that
aside from such expenditures as he may
have made for personal purposes. all in
auiries to date have failed to disclose
any source OF profits to defray the fifty
per cent bonuses given early depositors,
except the Investment of those who came
after them.
Receivership proceedings. which will be
brought In court tomorrow, are expected
to result in a coordination Of activities
to run down Ponzi's assets. Through the
receivers to be appointed. officials said,
an attempt undoubtedly will be made TO
marshal these assets and to obtain for
the benefit Of present creditors the large
81, xryhn m a.
tured before payments ceased.
Ponzi, the financial wizard Of yester-
day and the ex-convict and discred,ted
leader Of a new finance to-day was in the
East Cambridge Jail. federal prisoner
The ball which he had expected to obtain
was not forthcoming. and he was describ-
| ed as weary and hollow-eyed from sleep
| less hours of worry, In contrast with the
dapper financier. magnet of crowds. who
followed his cane-swnging. well-groomed
} figure through Boston streets. The banks
| which we're involved In his collapse, the
Hanover Trust company and the Polish
| Cooperative society, 1t is indicated, will
be closed for some time.
His offices. into which Mood Of none,
had poured for months In amounts 81
great that they had to be taken out a
times in bushel baskets, were deserted
save for Miss Lucy Nell the 1S-year-olc
girl who was his office manager. Sh
said she still held notes of Ponzi 70
$3.50. long since due her, which she hat
made no attempt to cash because Of he
faith in him.
| Other holders OF Ponzi notes went L
tho State House to-day with creditors o
the Old Colony Foreign Exchange com
pany. to add their information to tn
records of the State authorities. At tn,
federal building, creditors petition
against Ponzi and Joseph Daniels, as CO
partners, and petitions for receiver
ship and bankruptcy proceedings agains
the other company and its officials con
tinued to pour.
The federal inquiry to-day was centere
a conference to which Assistant Unite
States Attorney Shea had invited Mis-
Nell, Auditor Pride and postal inspectors
The conference lasted three hours an
at it's conclusion It was said that n
statement would be made