VOL. LIX NO. 18,633
Entered &t Portland (Oregon)
Postoffice as Second -Clans Matter.
PORTLAND, OREGON, FRIDAY. AUGUST 13, 1920
PRICE FIVE CENTS
HOTTEST AUGUST DAY
IN 46 YEARS IS 98
PORTIiAXD SWELTERS. WHILE
MERCURY CLIMBS.
BUSINESS BOOMING
AT LUMBER CENTERS
PREMIER OF GREECE
IS SHOT IN FRANCE
STATESMAN" ATTACKED BY
FELLOW COl'XTRYMEX.
UNCLE SAM PLANS
TO HELP POLAND
CONTRACT IS CLOSED
FOR TWO BIG TANKERS
PONZI ARRESTED
FLOCKING TO COX
IS TAKEN BY WIFE
E
BIG PURCHASES AT WESTERN
12,0 00-TOX VESSELS TO
. - BUILT AT VANCOUVER.
BE
MILLS REPORTED.
LIQUOR
COHORTS
HUSBAND'S POISON
UN FRAUD CHfVHb
V
K
V
Prohibition Seems to Be
Paramount Issue.
WORKING MEN WANT BEER
World, Democrats' Leading
Backer, Gathers Data.
NUMERICAL BREAK EVEN
Harding and Ohio Governor Have
About Equal Support, but All
"Wets" Want Cox.
OREGPNIAN NEWS BUREAU.
Washington, Aug-. 12. Enthusiasm tor
cither Harding or Cox appears to be
lacking over all the ground covered
by a representative of the New York
World, democratic, who has been sent
out through the country to interview
Individuals at random and report ex
actly what they have to say in their
own words.
Reports from Philadelphia, Pitts
burg and Cleveland have been pub
lished by the World for the last three
days, and notwithstanding all of the
talk about the league of nations, tax
ation and other so-called paramount
Issues, the only issue that appears to
have caused a thrill Is prohibition.
Ererrone Talks About Liquor.
All classes. Including tradesmen,
professional men and laborers, were
Interviewed, and the liquor question
eemed uppermost In more minds than
any other issue. Cox is approved by
many because they say his election
means the return of beer, while Hard
ing is denounced as "too goody
goody." The World's symposium of yester
day Included pick-up interviews in
Pittsburg and the importance of the
"wet" issue as developed by the
World correspondent was carried un
der a two-column head, reading,
"Pittsburg man In street wants beer
nd turns to Cox as liberal candidate.
Opinions obtained by the World man
how all campaign Issues are of sec
ondary Importance to modification o
the Volstead law."
Many Seek Relief In Cooling Wat
ers of Willamette Others De
cide to Carry Fans. ' '
The record for all the 46 years of
Augusts which have- been tabulated
at the weather bureau was broken
yesterday when the temperature
climbed to 98 degrees at 3 o'clock.
Hot days in previous Augusts there
have been,, but never one. warmer
than 97.
Portland people who' could steal
away, if only for an hour, sought the
cooling waters of the Willamette and
others dreamed of shady nooks and
decided to start carrying fans.
In four of the recorded 46 years
the official thermometer has regis
tered 97 on August 22, 1891, on Au
must 3, 1898, on August 10, 1902, ana
on August 28, 1915.
There have been many hotter days
than 98, however, for 102 degrees,
registered twice, in July, 1891. .and
July, 1907, is the record mark for
Portland. '
A slight breeze from the northwest,
which began about 6 o'clock in the
morning, furnished considerable re
lief early in the day, although In the
afternoon the breeze turned warm.
The forecast for today is continued
warm.
The hourly temperatures were:
8 A. M 722 P. M OS
0 A. M 76 3 P. M 9S
10 A. M 7'Ji4 P. M 07
31 A. M SSiS P. M 95
Sailor Admits He Mixed
Capsule for Self.
12 M.
1 P.
M.
P. M
.9316:30 P. M...
...92
.. .90
Roseburg Mercury Stands at 101
ROSEBURG, Or., Aus. 12. (Spe
cial.) At 4 o'clock this afternoon the
local weather bureau office reported
the mercury standing at -an even 101
degrees, making this the hottest day
so far recorded the present year. Yes
terday the hG&t registered S6 degrees.
The two warmest days of the present
season - previously recorded regis
tered 94 degrees.
Astoria Registers 86.
ASTORIA, Or., Aug. 12. (Special.)
Today was the warmest of the pres
ent season In Astoria and the ther
mometer in the local government
weather bureau registered 86 degrees.
During the morning hours the air was
extremely sultry as the result of a
light east wind, but this afternoon
the wind shifted to the west.
GRILLING GETS CONFESSION
Tubercular Condition Caused
Despondency, Testimony.
GIRL SAID TO BE SUICIDE
Spouse Took Hand From Mouth
and:. 1 0 Minutes Later Was in Con
vulsions, Prisoner Tells Police.
World la Cox' Chief Supporter.
It should be understood that the
World is the foremost newspaper
supporter of Governor Cox, and there
fore is not developing his "wet"
strength to injure him. Some of the
Pittsburg Interviews were:
A boss steel roller What we want
most and what we will insist of hav
lng is our beer. It was taken away
from the workers through trickery.
Some administration must restore it.
Most of us think Cox Is by far the
best bet, and that's why we are going
to vote for him.
A steel puddler The men In and
out of the steel mills don't care about
the league of nations or anything
else, save, perhaps, the high cost of
living. They are for the presidential
candidate who will make it possible
for them to get their beer again.
An engineer All the coal miners in
Bteubenville, a suburb of Pittsburg,
are going to vote the democratic
ticket because they are sore on pro
hibition and think Harding is dry.
No other issue enters their minds.
No Beer Causes Anger.
A merchant In Carnegie, where I
live, we all intend to vote for Cox
and the whole democratic ticket. Not
only are we hot over no-beer stuff,
but ministers out there induced the
democratic local officials to enforce
the blue laws, and we can't even play
baseball on Sunday.
A cigarmaker Out In a little town
where I live a lot of the miners and
steelworkers are going to vote the
democratic ticket, hoping to kill two
birds with one stone. The election
of Cox. they think, will restore beer,
if not liquor, and reduce taxes. The
reason taxes are so high is because
the government does not get any ex
cise tax and has to put the burden on
property.
A bartender I'm for Cox. Didn't
he let them hold the Dempsey-Willard
fight in Ohio? He's a regular guy..
Philadelphia Comment Given.
From Philadelphia came these ex
pressions on the liquor issue:
Taxicab driver Election? Who
gives a d n? Those fellows in Wall
street own both parties, so what's
the use of voting anyway? If I vote
I'll vofe for Cox. He's wet and when
it's wet my business is better. Talk
about Philadelphia being dead! Say,
man, a soft drink never made a man
feel like taking a taxicab home.
launch counter man T' --e was a
man In here last night who said
neither party was any good because
you have to be a millionaire to get
liquor. This country stands for being
run by a lot of four-flushing fakers
and prohibitionists. If Cox is wetter
than Harding, I'm for him.
Truck man When I lived in New
York I always voted the Tammany
ticket. Tammany put Cox over, and
that's good enough for me.
Barber Most of the men who come
to this hotel have money and they're
for the republican ticket. But the
fellows I meet outside think well of
Cox. They think he'll manage to get
their beer back for them.
Today's symposium from Cleveland,
Ohio, was introduced with statement
tCoaduded on Pago &, Column 6.
Eugene Hottest In 10 Years.
EUGENE, Or, Aug. 12. (Special.)
The hottest weather experienced in
this tfity in ten years prevailed today
wltii the thermometer registering all
the way from 98 to 104 degrees, but
the official record is only 98. Several
times during the last ten years the
thermometer has been as high as 97.
SAN DIEGO, Aug. 12. (Special.)
T. F. Flash, chief pharmacist's mate
on the U. S. S. Prairie, this afternoon
collapsed completely under the severe
grilling to which he has been subject
ed since his arrest Tuesday evening
and confessed to the chief of police
that he had prepared a poison capsule
which he said his wife, took at 5
o'clock the morning of June 17. She
died 30 minutes later. -
This confession came almost at the
closet of the second day of severe
questioning and cross-examination
and was made only after everyone,
excepting the chief and the detective.
had been excluded from the room.
Flash Faints After Confession.
Immediately after admitting that
he had prepared the poison capsule.
Flash crumpled and fell to the floor
in a faint. , It took the police some
time to bring him back to conscious
ness, when the questioning was re
sumed. Flash said that he had prepared
the capsule of poison for himself.
tnat ne Had Become tired of Hie, as
he was despondent over his condition
caused by tuberculosis and the con
tinual quarreling with his wife about
the dope he said she used.
He siid the capsule contained 1
grains of strychnine and 114 grains
of atrophine sulphate and that he
had taken It home, ' told his wife
what it was and that he intended to
kill himself.
Wife Seen In Convulsions.
At S o'clock on the morning of June
17 he said he was awakened by
Buyers, Anticipating Coming Lift
in Freight Rates, Place Orders
In Market Freely.
Lumber buyers, anticipating the
coming freight-rate increase, pur
chased lieavily the. past week, and
the mills in western Oregon and west
ern Washington took on the greatest
volume of new business booked since
the first week in April, according to
the weekly report of the West Coast
Lumbermen's association.
A considerable volume of the new
business placed is apparently to be
put in transit for speculative pur
poses, and if not shipped prior to
August 26 may be subject to cancel
lation,' says the bulletin. Cars for
loading lumber continue scarce, only
about 30 per cent of requirements
being furnished.
There is no evidence of the widely
advertised "rush of cars to the west
coast for lumber" which railroad men
announced some time ago. says the
report. Associated mills participat
ing in the weekly statement pro
duced 75,069,646 feet of lumber for
the week ended August 7, and dur
ing the same period these mills took
on 78,490,612 feet of new business
and shipped 68.457.790 feet of old
business.
New business for transcontinental
delivery by .rail totaled 1792 cars,
while rail shipments totaled 1486
cars. New cargo orders amounted to
16,503,702 feet in the coastwise do
mestic trade and 5,974,939 feet for fu
ture export clearance. Total new
cargo business was thus 22,478,641
feet.
Cargo clearances for the week
amounted to 11.017.839 feet in the
coastwise domestic trade and 8.825,757
feet for overseas, or a total of 19,
843.596 feet.
Railroad freight advances effective
August 26, concludes the bulletin,
which increase freight charges one
third on shipments consigned east of
the Rocky mountains, will greatly
curtail shipments by rail until such
time as the transcontinental carriers
work out and file tariffs permitting
west coast mills again to compete for
business in eastern markets.
M. Venizelos Gets Bullet in Left
Shoulder and Thigh Assail
ants Roughly Handled.
PARIS. Aug. 12. (By the Associat
ed Press.) Eliphtherios Constantine
Venizelos, prime minister of Greece,
narrowly escaped assassination at the
hands of fellow-countrymen tonight
as he was entering the Lyons rail
way station. He was shot in the left
shoulder and the right thigh. At
midnight at the hospital it was said
his condition was as satisfactory as
possible.
The assailants were two former
Greek officers, George Thtriakis ana
Apostolos Iserphis, both lieutenants.
It had been rumored that an attempt
was to be made on the life of M.
Venizelos and the police were on the
watch. They overpowered the assail
ants before they could empty their
revolvers. The miscreants were badly
beaten by the crowd.
Plea for Aid Under Se
rious Consideration.
COLBY AND ENVOY CONFER
9 8 at Hood River.
HOOD RIVER, Or.. Aug. 12. (Spe
cial.) A maximum temperature of 98
degrees prevailed here today, the hot
test for the season, while an unusual
humidity caused residents to swelter.
Orchardists report no damage from
sunburned apples.
Oregon City Has Hottest Day.
OREGON CITY. Or., Aug. 12. (Spe
cial.) Oregon City has experienced I
her hottest day of the season today.
and the thermometer registered at j
99 Vi at one location in the city.
Salem Registers 110 Degrees.
SALEM, Or., Aug. 12. (Special.)
Today was the hottest of the year in I
Salem. The thermometer in the down
town district ranged from 100 to 110.
ALBANY, Or, Aug. 12. (Special.)
Heat records in Albany this year
were broken today when local ther
mometers recorded maximum temper
atures varying from 99 to 102 degrees.
(Concluded on Page 6, Column 1.)
WOMAN RUNS FOR SENATE
Miss Anne Martin Files Petition at
. Reno, Nevada. '.
RENO, Nev., Aug. 12 Miss Anne
Martin filed today with Secretary
of State Brodigan her petition of nom
ination for the United States senate.
Immediately after filing her peti
tion Miss Martin started on a month's
campaign trip.
GIRL, 15, KILLS SELF
Matrons From Rescue Home Seek
ing Victim for Inmate.
ASHLAND, Or., Aug. 12. (Special.)
Alter telling matrons from a Port
land rescue home that she would ac
company them. Delta Reed, 15-year
old girl, shot and killed herself today.
Matrons Ruth Sharp and Emma
Lovett of Portland and Chief of Po
lice Hatcher of Ashland went to the
home of the girl's parents to per
suade her to enter the Portland in
stitution. The girl has been giving
her parents trouble, it was said. She
consented to go and asked permis
sion to go to her room to change
clothes. Instead she procured a heavy
caliber revolver and, going behind
the barn, shot herself. She was the
adopted daughter of G. C. Reed of
Ashland.
Purchase of War Materials
May Be Permitted.
RECRUITS ALSO DESIRED
Enlistment or Polish Citizens Res
ident In U. S. May Be Author
ized by Government.
SUGAR HAS HEAVY DROP
X'ew York Dealer Makes Offering
at Fraction Over 17 Cents.
NEW YORK, Aug. 12. Heavy de
creases in the sugar market, fore
shadowed by movements during the
last few days, took place today. One
large dealer reduced his list price on
the fine granulated from 21 cents to
a fraction over 17 cents a pound, and
raw sugar sold on a basis of 13.04
cents, 10 cents less than the high
level' of three months ago."
Holders of largo stocks of sugar
expressed the fear that they had
overstayed their market. Dealers de
clared the weakness is due to lack of
demand for refined sugar, free offer-
I lng and a feeling of unrest.
BOY IS SHOT BY FATHER
Serious Accident Happens Xear i
Castle Rock While Tvo Hunt.
CASTLE ROCK, Wash., Aug. 12.
(Special.) Ralph Harrison, 13 years 1
old, while out hunting with his father.
A. R. Harrison of Sandy Bend, was
shot in the shoulder by the accidental j
discharge of a gun carried by the
parent. The boy was walking ahead
when the brush or some obstruction
caused the discharge of the gun.
The boy was brought to town where I
the doctor found the wound to. be se
rious but not fatal. The lad had just
arrived from Walla Walla to visit
his father after an absence of three
years.
GIRL SWIMMER SAVES TWO
Hood River Mermaid Is Awarded
Campfire Medal for Rescue. '
HOOD RIVER, Or, Aug. 12. (Spe
cial.) Miss Bertha Norton, daughter
of J. R. Norton, who has been spend
ing the summer at a girls' campfire
camp in the Wisconsin lake district.
rescued two companions from drown
lng while on an outing.
A campfire medal was awarded Miss
Norton. She is expected home this
week. While away the local young
woman visited relatives in Minneapolis.
BIG SNOWFALL REPORTED
Fall of Seven Inches on Pike's
Peak Record for Angust.
COLORADO SPRINGS. Colo.. Aug.
12 Reports from Summit house on
Pike's Peak said seven inches of snow,
a new record for August storms, fell
last night.
Snow plows were out today on the
cog railroad and the automobile high
way. Two inches of snow fell In Col
orado Springs.
v
get rich quick ponzi hasn't anything on the ordinary spud . j
) Potatoes goimgt to 1
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WASHINGTON. Aug. 12. (By the
Associated Press.) Moved by the re
iterated pleas for aid from Poland.
the war department has under seri
ous consideration today the request
of Prince Lubonr.irsky. Polish minis
ter, for permission to purchase war
materials from the United States.
After conferences yesterday and
today between the Polish minister
and Secretary Colby, the state de
partment also took up the problem of
finding means of reinvigorating the
ebbing strength of the Polish state
and thereby fulfilling the assurance
of support contained in the American
note to the Italian ambassador.
Enlistments Also SouKht.
Polish officials explained that in
addition to the desire for war mate
rials, they were anxious to obtain
authorization to permit recruiting for
the Polish army in America. It was
said that not only had many offers
of enlistment been received by the
legation from Polish citizens resident
in the United States, but that many
offers had come from former Ameri
can veterans.
The Polish government. It was said
officially at the legation tonight, had
not made a formal request for the
extension to It of so unusual privi
lege. At the same time' it was con
ceded that the privilege was one of
which Poland would gladly avail
itself if tendered by the United
States. " .
Law Suspension Possible.
While a statute forbids enlistment
of armed expeditions in the United
States for employment against a
friendly power,- some officials ex
plained that the president could sus
pend operation of the law under his
wartime powers.
Raising of recruits by Poland un
der Paderewskl before the United
States entered the war, it was re
called, was agreed to by the Amer
ican government and many Poles-en
listed to fight under the allies were
removed from the United States and
trained in Canada and abroad.
In order that the United States may
keep in more intimate touch with de
velopments In Poland, Hugh Gibson,
American- minister to Poland, home
on leave, will depart tomorrow for
Warsaw. He will be accompanied by
a. KODDins, acting chief of the
3500 to, 3600 Men 'ov Employed
at Standifer Plant .Sure of
. Work Well Into 1921.
A contract was closed by the G. M.
Standifer Construction corpcration of
Vancouver, Wash., yesterday for the
construction of two tank steamships
of 12,000-tons capacity each for the
Imperial Oil company of ToronU.
Canada. The Canadian company is a
subsidiary of the Standard Oil com
pany. The contracts were closed by
Guy M. Standifer, president of the
shipbuilding company, and made pub
lic by R. V. Jones, general superin
tendent of the plant.
The Standifer plant is now in readi
ness to begin work on the new tank- i
ers as soon as material for their con
struction arrives from the east. Be
tween 3500 and 3600 men are now
employed in the big shipbuilding
plant, and the contracts closed yes
terday give assurance that at least
this number will continue to have
employment there until well into
1921.
Contracts f6r 12 tankers of the
12.000-ton type have now been ob
tained by shipbuilders of this district.
Five such contracts are In the hands
of the Standifer company, and the
Northwest Bridge & Iron company
has laid three keels on contracts for
seven vessels. of this size and type.
Larceny Warrant Also Is
Served on Financier.
35,000 TOTAL BOND GIVEN
Funds Handled Estimated at
$15,000,000 to $20,000,000.
LIABILITIES . PUT HIGH
AUDIT OF BANK BEGINS
Early Report Assured on Affairs of
Jacksonville Institution.
MEDFORD, Or., Aug. 12. W. H.
Bennett, state bank superlntndent and
his assistant. Marshall Hooper, ar
rived in Medford today and after a
two hours' conference with Prosecut
ing Attorney Roberts, left for Jack
sonville to investigate the books of
the bank of Jacksonville, which was
closed yesterday and whose president.
W. H. Johnson, was put in jail
charged with falsifying the bank's
accounts.
On his return from Jacksonville this
afternoon Mr. Bennett said the audit
of the books had started but there
would be no public statement for sev
eral days. A statement of the bank's
assets and liabilities is what the public
Is chiefly interested in, he declared,
and this statement will be made at
the earliest possible moment.
Prosecuting Attorney Roberts an
nounced the preliminary hearing of
W. H. Johnson, president of the bank,
will be held at Jacksonville tomor
row morning at 10 o'clock.
W.
PRICE OF FLOUR RISES
Higher Wheat Market Is Responsi
ble for Advance by Mills.
MINNEAPOLIS. Aug. 12 A higher
wheat market was responsible for an
advance of 40 to 75 cents in the price
of flour at the principal mills today.
One mill raised the price for family
patents in 98 pound cotton sacks from
$13.25 to $13.65, while another ad
vanced its quotation from J14 to
J14.75.
INDEX OF TODAY'S NEWS
division of near eastern affairs, who
has been temporarily assigned l
chancellor of the legation.
French Action Reported.
The official communique announc
1 lng the intention of France to recog- I
nlze as a de facto government that '
represented by General Wrangel in
southern Russia, was received today.
it says tnat a t rench diplomatic
agent will be sent to Sebastopol with
the title of high commissioner.
Administration officials consider
the French step as logical in view of
the succession of General Wrangel to
the authority of Admiral Kolchak and
the Omsk government, which was rec
ognized by both France and .Great
Britain.
France and U. S. Together.
Without foreshadowing a similar
step by the United States, officials de
clared that the action of France was
in no way inconsistent with the pol
icy towards Russia advocated in the
American note to Italy. The Ameri
can government, it was recalled, while
not having recognized Kolchak, at one
time eiTueavored to place Kolchak in
a position "in which he might be rec
ognized.
Reports that France's recognition
of Wrangel's government had led to
decided differences between Premiers
Lloyd George and MUlerand generally
were minimized here.
CENSUS GAINS REPORTED
Counties Containing Large Cities
Show Substantial Increase.
WASHINGTON, Aug. 12. Census
announcements today were:
Salt Lake county, Utah, containing
Salt Lake City, 159,282; increase 27,-
856 or 21.2 per cent.
Marion county, Indiana, containing
Indianapolis, 348.061; increase 81,400
or 32 per cent.
Onondaga county. New "York, con
taining Syracuse, 241,465; increase 41
167 or 20.6 per cent.
MAYOR OF CORK ARRESTED
Official and 10 Associates Taken
While at Sinn Fein Conrt.
CORK, Aug. 12. (By the Asso
ciated Press.) The lord mayor of
Cork and ten associates were ar
rested today while attending a ses
sion of the Sinn Fein in the city hall.
They were taken to the military
barracks.
The Weather.
TESTE RD AT' S Maximum temperature. 98
degrees; minimum, tis degrees.
TODAT'S Fair, continued warm; north
erly winds.
Foreign.
Greek premier shot and slightly wounded
at French railway station. Page 1.
Bolshevik cavalry reported to have reached
suburbs of Warsaw. Page 2.
Portland newspaper man stirs natives of
Samoa to revolt. Page 5.
British premier asks red emissary to facili
tate armistice conference. Page 2.
National.
War department seriously considering
question ot aiding Poland. Page 1.
Politics.
Harding may inject protective tariff Issue
into campaign. Page s.
Liquor cohorts flock to support of Cox.
Page 1.
Democratic stump campaign gets under
way. Page 3.
Wastefulness must end. declares oolidge
Page 1.
Republicans are warming up to political
campaign, raxe i-t.
Gellatly kicks up dust In Washington
gubernatorial campaign. Page 15.
Xometlc.
Ponzt Is arrested on charge of using malls
to defraud. Page 1.
Plight of Poland blamed on republicans.
Page 4.
Sailrr confesses he mixed poison that
killed wile. Page l.
Railroads take on new lease of life. Page
- 3.
Northwest.
Fire destroys $100,000 business block at
Bucoda. Wash. Page 7.
Merchant marine measure will foster fleet,
says Jones. Page 20.
Wind fans two forest fires In Santlam.
Page 15.
Sports.
Coast league results: Seattle 2. Portland
4; San .Francisco 5, Los Angeles 4;
Salt Lake 9, Sacramento 2; Vernon 4.
Oakland 7. Page 12.
Rumler suspension demanded In coast
gambling probe. Page 13.
Jock Hutchinson leads In national open
golf tourney. Page 12.
Commercial and Marine.
Steady decline In wholesale commodity
prices. Page 21.
Export buying lifts wheat prices at Chi
cago. Page 21.
Further advance in Wall-street stock mar
. ket. Page 21.
New rail rate Increase avoids establish
ing differential. Page 20.
Portland and Vicinity.
Contract closed by Standifer corporation
for two 12.000-ton tankers. Page 1.
fHigh point in buying for buyers' week
reached. page l.
Civil engineers inspect municipal terminal
No. 4. page 2U.
Court denies writ of prohibition in Leskella
case. page xu.
Lumber buyers, anticipating freight rat
increase, purchase heavily. Page 1.
Druggists indorse plan for purs drug law.
page iu.
Northwest travel gains 300 per cent.
Pa.se 14.
Salmon Industry declared in danger. Page
Hottest August day In 46 years causes
Portland to swelter at 98. Page 1.
Teachers pay rlss discussed by board.
Pegs ,
Attorney-General Believes Debts
Kxcced Assets by Millions
of Dollars.
BOSTON, Aug. 12. (By the Asso
ciated Press.) Some 40,000 investors
intrusted a total variously estimated
at $15,000,000 to $20,000,00 to Charles
Ponzi in a money-making scheme
which postal officials today declared
impossible of fulfilment.
Ponzi surrendered to federal au
thorities this afternoon, explaining
he could not meet his obligation
because of the closing yesterday of
the Hanover Trust company, where
most of his funds were deposited. He
was arrested, charged with having
used malls to defraud, arraigned and .
held in bond of $25,000 tor hearing
August 10. Morris Rudnick, real
estate dealer, furnished the securities.
Meanwhile a warrant charging the
Italian with larceny had been ob
tained by the state police in the
municipal court and on leaving the
federal building Ponzi was rearrested
and held by the city court In $10,000
bail for appearance August 23.
Rudnick again went on Ponzi's bonds.
Developments Come Fast.
Developments came fast today. As
Ponzi was being arraigned before
United States Commissioner Hays,
Edwin L. Pride, auditing the books of
the Securities Exchange company for
the federal authorities, announced.
that it already had been shown Ponzi
owed $7,000,000.
Attorney-General Allen, who is con- .
ducting a separate investigation, said
he believed Ponzi's liabilities would
total millions. State Bank Examiner
Joseph Allen, in a statement, declared
that the capital of the Hanover Trust
company, of which Ponzi until yester
day was a director, was seriously im
paired and probably wiped out. State
Treasurer Burrell attacked the bank
commissioner for not having given
him opportunity to withdraw state
funds before the Hanover was closed.
In response to Governor Coolidge's
demand that he make known how
much state money had been tied up.
Burrell announced the sum was $125,-000.
Many Investors Foreigners.
Ponzi's field appears to have In
cluded New Kngland and New Jersey.
The line that formed daily at Ponzi's
office appears to have been far from
representative of his clients. This
was made up mostly of foreigners in
terested largely In getting their
money.
Anxious Inquiries at the newspaper
offices and feverish conversations
indicated that the proprietors of
small business, professional men and
women, clerks and stenographers by
the thousands had accepted the bait
of "50 per cent profit in 45 days."
Agents working In offices and fac
tories interested many, particularly
among Italians. The mystery of
Ponzi's methods added to the attrac
tiveness of his promises. It was said
that in many cases the possibilities
of profitably exchanging American
dollars for French francs and francs
for Italian lire and the latter for
something else, seemed plausible
enough without a clear comprehen
sion of Just how the things worked
out.
No Reply Coupons Bought.
Among the amazing disclosures was
that the bulk of Ponzi's millions was
gathered In after the postoffice de
partment had begun its investigation
, last February.
In discussing the case tonight.
Chief Postoffice Inspector H. B. Mose
by said that so far as their investi
gations had shown, Ponzi had never
done any business in international
reply coupons. He said he had
warned hundreds against Ponzi when
inquiries began to be made.
In a statement Mr. Moseby said:
"It has been my great desire that
Ponzi should be brought to account
and his scheme laid bare, and never
for a moment did I believe that he
was solvent, but that in the end he
would be shown to be insolvent, prob
ably by a million. Within the past
few days, having felt sure we had.
or would shortly have, sufficient evi
dence on which to arrest Po: zl and
to make sure he could be found when
wanted, I have taken the precaution
to keep him under surveillance, al
though the latter gave no indication
he would attempt to leave this Juris
diction. However, having his previ
ous record in view, I felt it my duty
to make every possible effort"to pre
vent his escap
Appeal Made t Gambltne Spirit.
"He appealed to the gambling spirit
of the people. When ne started out ho
promised 50 per cent in 90 days, but 1
he paid in 45 days, with the result
that many reinvested.
"Ponzi did not use the mails as
openly as It often is the case. He
started buMnefs in a small way. de-
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