The Bridgeport times and evening farmer., 1920-07-28
Boston Is RiOtOuS' Over New Money
 Wizards Scheme
Ponzi Has to Remove His Office to Another Place in Order to Pay Those Who Had Been Promised 50 Per Cent. Interest in 45 Days No Flaw in His Scheme Yet Found.

Yet Found.
 Boston. July 2s-Boston is still wild over the financial operations of Chas Ponzi, who has cleaned up several millions of dollars in the last few months and there have been several near riots in and around his office on School street in the past few days as people who had his notes, fright ',ened by the publicity which he has received and fearing they would lose their money, demanded payment.
 Thus far there has been found no nnaw in Ponzi's scheme which prom dses to pay 50 per cent. for the use liof money for 45 days and Ponzi is paying all the claims in full.
 Meanwhile, an. application was made by one of Ponzi's creditors in the Superior Court today for a re- 'ceivership for the Ponzi concern, and a temporary injunction restrain 5ng Ponzi from drawing on funds on deposit in several banks here.
 Judge Watt declined to grant the temporary injunction, and the appli- tcation for a raceivership was there upon withdrawn.
 Judge Waits decision to withhold temporary action against the firm fol- a len, appearing for Ponzi, that Ponzi rand his firm are meeting all obliga- tions, and that Ponzi declares his ability to meet them in full.
 Secret selection of an auditor to Investigate the affairs of Ponzi, the newest financial wizard" whose promise to double your money with tin ninety days" has set Boston wild; sa near riot in the School street offices vo1 in (which four women, exhausted by thours of frantic endeavors to reach Ithe inner offices to collect their {money during one of the periodic at- Etempts of the crowd to force entrance sto the rooms; the injury to several linen in the crowd who were cut by tflying glass from the doors when kthey attempted a wedge formation to lforce their way inside, and con- Sstant1y growing demand for repay sments of credits, marked the days developments in the $S,500,000 finan- tScial sensation.
 District Attorney Joseph c. Pel1e- ttier announced today that he had ap- 5pointed an auditor to exantne care- Ifully into the standing of Ponzfs fbusiness venture, but declined to fmake his name public until tomorrow Pelletier refused point blank to an- kSWer any QueSIlOHS us Io Why lio Soh- gcealed the name of the auditor, or tc speculate or comment in any way upon the case.
 Shortly before the news was an tnounced of the appointment of ar kauditor a crowd of persops who had invested money with Ponzf, most o1 whom were Italians from the Nortf End colony, rushed his offices, fore ed admittance, and gave the police g merry time before order was restored
 A second disturbance occurred dur ling the luncheon hour when fyins .~vedge of creditors damned the doors of Ponzrs office. A squad of seven iponcemen fought their way through and threw them, yelling, from the of- lfices. Then followed a ten-minute flight to clear the corridors.
 So many creditors appeared at the ISchool street offices that Ponzi took over the "Bel1-in Hand" famous fol years as a barroom in Pie Alley, ano transformed the place into a tempo l1ary office. There applicants for re- turn of loans were received, their ap- Erlications checked, and those approved lpaid from a hastily constructed cash laers booth within the exit doorway.
 At least thousand claims were set tied yesterday before the bushes: closed, actual cash on hand in Ponzf! offices had been exhausted, and clerks were giving out bank checks. There was little argument over claims. either for withdrawal at the end of the in terest term, or from those desiring tt surrender notes and receive the fact value of the original investment.
 At the close of business yesterday afternoon, Ponzi prepared and gave out the following statement to th' press:
 'Iu conformity with my agreemen made with District Attorney Pelhtiet on Monday, have. in so far as it wa humanely possible with the clerica force on hand, paid every obligation presented at my office today in tn form of notes issued by me during tn past 45 days. All of the notes whicl had matured were paid at their fac value. All notes which had not ma tured were redeemed by me for thei original sum. This was in accordance with my advertisement in the papers
 The amount paid out by me during the day amounted to several hundre' Thousands of dollars. I shall continu payments tomorrow on the same basis end every day until all of my obliga lions have been presented.
 "I learned early in the day tha spectators were purchasing note that had not matured from people i line, for the purpose of holding tn notes until maturity and collecting i full, with 50 per cent. t.~interest. Whil II have no control over these note: which are negotiable, I feel that should call the attention of the publi to this attempt to speculate on thei holdings and let them see the incon