Evening star., 1950-02-09
Stamp Scheme
Rumors Of Loss
By Gamblers Hii
Postal Investigators
Assuil Reports as
Irresponsible

Investigators of the get-rich-
quick stamp scheme of Harold A.
Ambrose today clamped down on
what they called irresponsible"
rumors that big-time gamblers in
vested money or lost heavily in
the plan.
Mr.. Ambrose resigned by re-
quest January IL as a special as
sistant to Postmaster General
Donaldson. He quit after disclos-
ing he tried to act as an agent for
outsiders in buying large blocks of
special-issue stamps and selling
them later at a SO per cent profit.
Postal inspectors said they have
about finished interviewing peo-
pie listed by Mr.. Ambrose as hav-
ing put in a total of "at least
100000 and would submit a re-
port probably early next week to
Mr.. Donaldson.
Joe Adonis Mentioned.
The report also Will go to the
Justice Department for study of
possible prosecution on conf
dence game charges" if there is no
evidence of violation of postal
laws, it was learned. Losses by
some investors" totaled close to
100000. investigators have esti-
mated.
Reports that self styled New
York gambler, Joe Adonis, put up
money either for himself or for
friends in the stamp scheme were
described by a Post Office De-
partment official as "irresponsi-
ble."
The official declared he would
not comment 'in any way" on
those reports except to say that
they had reached the department.
He said all investigators have
strict orders not to discuss the
case, tell how many participants
were involved in the postage
stamp deal, or give out names of
any person questioned in the in
vestigation.
Our advice is to wait until the
investigation is finished" the Of
fetal said. "a lot of people might
be sorry if they don't"
$4,000 Loss Reported.
Max o. Truitt, Washington at
torney and son-in-law of Vice
President Barkley, said that Hen
rik Mannerfrid, a New York ex-
porter. lost "close to $50, 0,000'' he
gave as an investment in the
stamp buying plan.
Mr.. Mannerfrid retained Mr..
Truitt in an effort to recover the
funds and has been interviewed
by postal inspectors. Mr.. Truitt,
through an associate, said Mr.,
Mannerfrid did not take his COM
plant originally to the Post Office
Department officials before Mr..
Ambrose resigned but has CO.
operated fully with them in the
subsequent investigation.
The attorney added that he did
not know how many others gave
money to Mr.. Ambrose.
Another investor, according to
department sources, was Bruce
Livie. head of the Motor Sales Co.
in Baltimore. They would not
verify reports that Mr.. Livie lost
money. Mr.. LIVES Office in BaIti-
more today said he was out of
town.
Donaldson Bars Names.
Postmaster General Donaldson,
a department spokesman said, has
SAID that at this stage he will not
name any of those with whom
Mr.. Ambrose repeatedly was in
volved.
A Justice Department official
said he had been informed that
at least half dozen" of the
people who gave money to Mr..
Ambrose on a promise of quick
profits on stamp sales were left
holding the bag.
FBI agents are working with
postal inspectors in the investiga-
ton. Postal authorities said the
probe thus far indicated Mr.. Am
orose did not use Government
funds in any way and did not buy
stamps illegally. If at all. Nor is
there evidence as yet that the
mails were used Illegally, they
added.
Called 'Kiting Scheme"
The method reportedly used
by Mr.. Ambrose was described by
fa Justice Department source as
being a variation of the age-old
kitlng scheme" He defined Exit
ing" in general as fictitious"
way of raising money or keeping
up credit without maintaining
actual bank or cash balances.
A postal official said MIR. Am
prose apparently not only COL
lected large sums of money on
the promise to buy commemora-
tive stamps, hold them for 80
days, and then sell them for a
so per cent two-way profit. The
plan, according to that official,
also called for "using the same
money several times" Early in
vestors repeatedly were paid
profits" from money given Mr..
Ambrose by later buyers, he ex-
planned.
Senate Confirms BazeIon
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