Evening star., 1950-06-09
Stamp Deal Probers
May Recall Adonis
Despite Court Ruling

IUeSpIte I0u1 kulIng
Although upheld in his refusal
to answer certain questions before
the Ambrose stamp deal grand
jury here. Gambler Joe Adonis
still may be called before the
panel again.
Federal prosecutors handling the
case declined to say what use
there might be in recalling the
New York underworld bigshot in
the light of his attitude yesterday
in the jury room. But Assistant
United States Attorney John w
Fihelly emphatically said Adonis
has not been finally excused and
that the panel will hold one more
session on the case next week.
| Mr.. Fihelly yesterday initiated
what could have been contempt
proceedings against Adonis. who
although only a witness in the
case, refused to answer two queS-
tions in the jury room on grounds
the answers might have tended to
incriminate himself.
Acting Within Rights.
But when the prosecutor raiseC
the issue in District Court. Judge
Alexander Holtzoff ruled Adoni:
was acting within his constitu-
tional rights in his refusal te
answer.
Mr.. Fihelly, flushed and angry
stalked before Judge Holtzoff, with
Adonis and the % grand jurors il
tow, to see If the court could forct
the witness to respond. Length!
arguments, capped by 20-minut,
bench conference, proved to NJ
avail for the Government. ans
Adonis was dismissed for the day
Before the incident ended
though, a few shafts of light haC
illuminated the case against Har
old F. Ambrose, former posta
official forced to resign because O.
$630,000 in neW-stamp transac
tions with wealthy SPECTATORS.
Tells of Ambrose Friends"
Investigating the stamp deals fo
possible fraud, Mr.. Fihelly said tn,
grand jury learned that Ambros,
operated by representing himsel
to friends and acquaintances a.
having postal contacts favorable tt
buying perfect" commemorative,
stamp issues to sell to collectors a
a so per cent profit.
To 20 of these friends" includ
ing Joe Adonis. Ambrose said h
had special and exclusive rights
to obtain the stamps, Mr.. Fihell,
said.
Ambrose invited investments
OF large sums of money-"th
larger the better"-in stamp pur
chasing ventures. the prosecute
continued. AS a result, som
$630,000 was handed him by tn
spectators. with a total loss t,
them of about $25O,000, because
Mr.. Fihelly said. "in very fev
instances" were stamps actual,
sold by Ambrose.
Relates $13O,0O0 Deals.
AS for Adonis' role in the deals
Mr.. Fihelly said the gambler 20
together on four occasions will
Ambrose. ultimately investing
$4,000 and regaining onl,
$3.50
He met Ambrose at the Claridg,
Hotel in Atlantic City, N. j.. ant
handed over $4,000 in September
1948." the prosecutor told Judg,
Holtzoff. On October 4, in tn,
Mayf1ower Hotel here, one O
Adonis' men turned over $50 00
to Ambrose. Later, there was ,
$4,000 transaction and finally
sometime in 1949, a $4,000 ex
change in New York. What none,
Adonis got back was repaid O,
three different dates last Decem
Der and January. the prosecute
added.
Having provided the court will
his summary of the case to date
Mr.. Fihelly emphasized that 9Th,
only guilty individual is Ambrose
who admits his guilt"
No Conspiracy Shown.
There was nothing in the in.
vestigation to show conspiracy or
the part OF Adonis or any of tn,
other Spectators" Mr.. Fihell,
said.
There is no showing of crimi
nallty on Adonis' part" he de.
clared. 1T is just as if he hac
walked through the streets O
washington and had been slugge,
and robbed of $105, ,0o0."
Because Adonis is merely a wit.
ness. Mr.. Fihelly argued. h,
should answer the Questions
which dealt with the ALLEGED
transaction in Atlantic City.
Adonis' Washington attorney
William H. Collins, expressed
leeriness Of the Governments az.
PLANTATION.
Sought Quick Money.
They went into these deals TO,
quick money" Mr.. Collins sale
OF the speculations. THE Gov.
ernment could take up the oues.
tion Of their completely"
Judge Holtzoff agreed that il
charge of defrauding the United
States developed in the case. all
OF those involved in the trans.
actions could be charged.
On this note, the Judge agreed
to bench conference, details %,
which were not disclosed. At the
close Of it, however, Judge Holt.
zof announced:
The witness was within his
constitutional rights declining te
answer the questions on grounds
the answers may tend to be self
incriminatory." the Judge declared