The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-08-14
LOAN ASSOCIATION
CLOSED AS SEQUEL
OF PONZ|'S CRASH
Affairs interviewer With
Those Of Trust Company,
Says 0ffiCiaI-0fficers of
Rival Concern Jailed.


BOSTON, Aug. 14-Bank Commits
sloner Joseph c. Allen today took
charge OF the affairs Of the Polish In
dustrlal association. conducting pri-
vae bank at 81 Cross street. in this
clty Henry II. Chmielinski, president
OF the Hanover Trust company, the
chief depositary OF Charles Ponzi. which
was closed last Wednesday by the COM
missioner, is president OF the industrial
association.
Bank. Commissioner Allen said the
loans OF the association were either bad
or OF doubtful value and there was vir-
tually no cash left. He said its affairs
were hopeless interviewer with those of
the Hanover Trust company. The capt.
tai Of the association Is S13,775 and It
mad deposits Of about $3.50 600.
The financial ship that has been
piloted by Charles Ponzi was high and
dry on the rocks today and federal and
state officials made determined efforts
to salvage tho cargo OF millions OF
dollars intrusted to Pon8i by thousands
OF investors in his $50 per cent in three
months"
Ponzl ate his breakfast in the Mid
dlesex county Jail in East Cambridge,
| prisoner Of the United States govern
ment in default OF $25, 900 bonds.
Three officers Of the Old Colony For
e eign Exchange SS nI, company; a rival con-
company. had their morning meal in
| the Charles street Jail, prisoners Of the
commonwealth In default of $50 900
bonds each. Samuel Zorn, said to be
an employe OF the Old Colony Foreign
Exchange company was at headquar-
tiers awaiting hearing on charge of
larceny OF $500 from persons unknown.
| He also had spent the night in Jail
The three officers of the company
who were held are Charles NJ. Bright
well, president and treasurer of the
concern Raymond Meyers, office man
ager. and Fred Meyers, sales agent. The
| Meyers are brothers, The men were
held on technical charges of larceny
| OF $500 from persons unknown, Upon
| representation OF Albert HurwitZ as
sistant attorney general. that the COM
pany's transactions probably would be
shown to have amounted to hundreds
/ of thousands OF dollars. the bonds were
set at a high figure.
Surrendered by Bondsmen.
Ponzi, whose bondsman surrendered
him yesterday to the federal authori-
/ ties was confronted with the alterna-
| tive Of remaining in federal custody, or
IL he could find another bondsman, OF
being arrested again by the common
wealth under blanket warrant issued
in the municipal court charging him
with larceny on SO counts, totalling
| $24, 900.
| 1t was said II Ponzi could find ans
| other bondsman and elected to face re-
| arrest by the state, a. bond Of prohibit
tive figure would be asked. The author
tiles were said TO he determined thai
/ the sensational financier should remain
q In custody. the hefprincipai reason for thi
being a desire to preserve for his cred
itors whatever assets he may have an,
the fear that PonZi might seek to dis
sipate or transfer them If out on bail.
Edwin L. Pride. federal auditor o
Ponzi's account, has placed the latter
known liabilities at s., 900, 900, and Ponz
claimed assets of about S4000,000. II
this connection Mr.. Pride said:
Il am inclined to believe great dea
of money collected by Ponzi and hi
agents has been deposited in the namei
of others The results OF rigorous
examination Of Ponzi's affairs viii
speak for themselves"
Referring to the possible transfer o
large sums by Ponzi to his wife, Mr.
Pride said:
'Tt can be taken away from her ant
1t will be. II does not belong to her
1t is money that was obtained under
fraudulent pretenses. to be used fol
fraudulent purposes. In going aftel
what may be called Ponzi's concealed
assets, we shall reach the large amour
transferred to or deposited in the name
OF Mrs. Ponzi."
Ponzi withheld from his wife the news
of his surrender by his bondsman. H'
telephoned to her before going to Jai
that he was remaining in Boston during
the night to go over his books witt
an auditor. Mrs. PonZi reasserted hej
faith in her husband.
Hes Honest" Says Wife.
HE is honest" she said, "and will
stay by him to the end"
The second OF the two petitions tha
have been filed to have Ponzi adtudget
bankrupt was pending in the fedora
court today. The three latest peti
TONERS. holders OF Ponzrs notes for
total Of 81, 625, asked that two partner
of Ponzi namely John 5. Dondero,
, Medford, and Guglielmo Bertoflotti, o
Parma, Italy, also be adjudged bank
rupt. .,.,-,.
, ter Ponzis affairs also has been tile'
by creditors. u
Examination Of the books Of the Han
over Trust company, which was Pon2l
chief depositary and in which he wa
a stockholder and director, was con
tinued today by members Of Bank Com
missioner Aliens staff. Mr. Allen, wh
closed the Hanover Trust company las
wednesday, in a statement lntende
TO reassure depositors in that institu
fiou and in other trust companies, SAID
Nothing has developed sofar to lea
n,e 10 believe depositors VIII lose on