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JAILED ON SCHEME 4 HATCHED BY ITALIAN three men will be given a hearing Augstate seal to be placed on all the safe Boston, Aug. ,--Four men who have ust 24. deposit boxes in that institution used accepted millions of dollars from New 53 Charges Lodged. by Ponzi, or by officers or employes of England investors in the last few the bank. He said this was done as a Further criminal proceedings were months. on promises of payment of precaution against the possible removal taken against Ponzi. In municipal fabulous interest are behind the bars. court a blanket warrant was issued of securities or other valuables pending the settlement of the bank's affairs. charging him with larceny in 53 counts, Charles Ponzi, whose spectacular toalling, $14,000. Police Inspectors were financial dealings have made his name Run on Old Colony. at the federal building prepared to reknown the country over. was surrendered The arrest of officers of the Old arrest Ponzi if the federal authorities Friday by the man who furnished $35,000 Colony Foreign Exchange company released him again on bail, but as he bonds for his release Thursday after came after a frenzied run by note holdwas taken to jail the municipal court his arrest by the federal authorities. ers upon the company's offices on Decharges against him were held in abeyUnable to find another bondsman, Ponzi vonshire street. One of the results of ance. was taken to jail. this run was an imperative notice servPartners Uncovered. Three officers of the Old Colony ed upon President Brightwell by the Foreign Exchange company were arrestFurther bankruptcy proceedings in trustee of the building to vacate his ed. taken into the municipal court and which for the first time partners of quarters within a half an hour. Shortheld on $50,000 bonds each on a techPonzi were mentioned were brought in ly afterward the offices were closed. nical charge of larceny of $500 from the federal court. The three petitioners More than a hundred note holders were holders of Ponzi's notes for a topersons unknown. In default of bonds, were in the Old Colony Foreign Exthey spent the night in jail. They are tal of $2,625. They asked that Ponzi change company's outer office Friday Charls M. Brighwell, president and and John S. Dondero of Medford. and forenoon. treasurer of the concern; Raymond Guglielmo Bertolotti of Parma, Italy, The announcement that payment had Meyers, office manager, and Fred named as his partners in the Securities been suspended brought loud cries from Myers, sales agent. All three pleaded Exchange company be adjudged bankthe waiting crowd. not guilty. rupt. "We want our money." several shoutSamuel Zorn was arrested at his home Rumors were current that further ed. in the Dorchester district on a warrant There was a rush toward the inner developments bearing on "get rich charging larceny of $500 from persons office. Guards employed by the concern quick" schemes might be expected in unknown. This was the same charge the near future. There was no hint as struggled to keep the people back. upon which the three officers of the Old Threats were made against Brightwell. to the nature of these developments. Colony Foreign Exchange company were Finally. the guard succeeded in No Other Banks Involved. arrested earlier in the day. clearing the offices and the doors were Rival of Ponzi's Concern. Joseph C. Allen, state bank commisclosed and locked. sioner, said that he knew of no foundaAn hour later the Devonshire street That the activities of this company tion for the report that Ponzi's crash offices of the company were re-opened might have rivalled in extent the dealmight involve any banking institutions and payment of principal on unmatured ings of Ponzi's Securtes Exchange comnotes was resumed. The notice to vacate except the Hanover Trust company, pany was intimated by Albert Hurwitz, came soon- afterward and again the which was closed by the commissionr. assistant district attorney of Suffolk offices were closed. A notice posted on Ponzi was a director and share-holder county when he told the court that the the doors said that future payments amount involved in the transactions in this bank, through which he checked would be made at an office on Oliver out millions of dollars. probably would be shown to be hundreds Street beginning next Monday morning Mr. Allen made it known in connecof thousands of dollars. It was upon bat that no payments would be made tion with the closing of the Hanover this representation that he asked that Saturday. Trust company that he had caused the the bonds be set at a high figure. The
