The Indianapolis times., 1930-05-16
BOOTLEG GAS
FLOODS STATE,
Says BOBDITT
Cheap Grade Struggled In,
Sold at Cut Rates,
Auditor Charges.
BY DANIEL NJ. KIDNEY

KY DANIEL Wa LAAOANSA
Indiana has it's own oil scandal,
It was admitted today by state Off
cials.
The state has been and still is
being inundated by low grade gaso-
line. peddled by gasoline bootleg
gers" and sole at cut-rate, escap-
ing both inspection and taxation
according to State Auditor Archie
Bobbitt.
Hundreds of thousands OF gal
Ions have been sold in this man
ner and tens of thousands of dol
lars have been filched from the
state by nonpayment OF the gaSo-
line tax, he said.
These sums have enriched the
Golfers of the hackers Of the illicit
gasoline trade. The business, IN
Vestigation discloSes, centers in Lake
county. One of the gasoline boot
Ieegers recently has paid the state
$4,000 for tax-dodged gasoline Solo
at South Bend stations.
Incorporated Company
The man making the payment,
louis H. Joers, Michigan City, is
listed as president Of the Dunes on
Company in Incorporation papers
fled with the secretary OF state.
Clarence Fate, Crown Point, IN
vestieator for the state securities
commission in the Office o. Secre-
tary of State otto G. Fifie!d, con-
ferred with the state auditor re-
oarding the tax settlement. His son,
Joseph Fate, and Malcomb Clark
Crown Point, have taken over tlve
of the illicit stations of the COM
pany in northern Indiana and ex-
pect to take over four more, Fate
said.
Here is how the business has
been operated, according to a con-
fession on file with Leland K. Fish
back, state gasoline tax collector In
Bobbitt's Office.
Low grade gasoline, distilled from
distillate or. residue from oil re-
fining. and casing head gas, was
shipped by the Reliable Oil Com
pany from Englewood, Ill, to Soutn
Bend.
Bore DistiIIate Label
The cars bore a distillate label
and thus escaped both inspection
and the 4-cent-a-gallon tax.
It then was sold at cut rate by
the Dunes Oil Company stations.
The company also operated under
the name of the Rovella OH Com
pany, the confession states.
The $4,000 back tax and hne
covers only the South Bend ship
nents made by rail from both the
Reliable and the Knickerbocker
Reghning Company, Hammond
Ind.
Bobbitt has been unable to OBJ
tain records of the truck shipments
and none on other stations OF the
company operated outside South
Bend, he said
.1oers contends that he didn't
keep any books" He is being per-
mitted to continue operation on
probation at the South Bend sta
tions.
Always Paid Tax
Stations at Crown Point, Hobart
and Michigan City now are beng
operated under the name OF Fate &
clark. clark ran two cut-rate gaso-
line stations previously and always
naid the state tax. Bobbitt said.
The Knickerbocker company has
a pIant a. Hammond which makes
the distillate into gasoline. This type
Of product also said to be handled
hv the Riverside oil Company, with
several Lake county stations. They
are reported to operate a 1000
Gallon truck between Illinois and
Indiana.
last month thev paid tax on
6.2a5 gallons, Fishback's records
show.
Financed in Chicago
Bobritt expressed the opinion thai
manufacturers and distributors Of
this gasoline are all being financed
BY a Chicagoan.
FSshback pointed out that there ]:
a 5000 fine per car and two year:
Imprisonment provided for inter
state shipments of gasoline labeled
distillate.
Attorney-General James NJ. Ogden
has been called into the case. In
dependent oil dealers of South Bend
are attempting to get a ruling that
; gas tax dodger is guilty Of embez-
element Of state finds.
Bobbitt and Fishback announced
thzt the INVESTIGATION viii continue
Wabash Student Hurt