The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-09-02
BOOTLEG GAS
BASE TRACED
TO Indiana
Ring ReapS Millions Out of
Product TruCked From
State, Check Shows.
ILLINOIS HEAVY LOSER
Other States Start Drive to
Smash Industry on
Giant Scale.

Indiana is named as the fountain
head Of gigantic bootleg gasoline
conspiracy, flooding Illinois and
surrounding states, in a survey
completed from Chicago today by
the United Press.
Although Floyd E. Williamson,
state auditor, contends that little
bootleg gasoline is being peddled in
this state, it is the supply base for
surrounding territory, the survey
indicates. No tax is levied here on
gasoline to be sold elsewhere, it is
pointed out.
Day and night, caravans of trucks
filled with bootleg gasoline rumble
over the state line from Indiana
into Illinois, some fleets making
four round trips in twenty-four
hours, the survey disclosed.
'BOOtIeggers' Grow Rich
Fly-by-night companies, with
dummy directorates, grow rich from
the 3 cents a gallon they pocket in
stead of paying tax. When official
scrutiny is turned their way, they
change the names of their firms,
repaint their trucks another color,
and the illicit traffic rumbles on.
Few thrills befall drivers. One
questioned at Danville, Ill, said:
TITS as tame as delivering a load
of coal, only cleaner. know. I go
to Hammond, Ind, and get load
every night"
Illinois loses at least $1,0O0,OO0
monthly to gasoline bootleggers, &C
cording to semi-official estimates.
United States District Attorney
E. o. johnson of Chicago said:
1T appears that a condition is
being created similar to that of
bootleggers in the liquor con-
spiracies, inevitably breeding gangs
and lawlessness."
Widespread Violation Shown
Governor Emmerson, Mayor Ger
max, Attorney General Carlstrom
and the secret six" of the Chicago
Association Of Commerce are among
individuals and groups aligned
against the gasoline smuggler.
The survey records violations of
state motor fuel tax laws from
Michigan to Texas and from Penn
sylvania to Nebraska.
In Pennsylvania, armed land and
water forces are waging war on
gasoline bootleggers on 1,200-mile
front. A special unit of state high
way patrolmen guards the land
boundaries. An armed cutter cruises
waters of the Schuylkill and Della
ware rivers.
Results of the drive already are
apparent, said A. P. Delahunt, COM
missioner of the Pennsylvania liquid
fuels tax bureau.
Gasoline bootleggers stole tax on.
100000 gallons yearly until this
drive started" he said. They
robbed the state of millions of dol
lars. Now collections are increasing
at the rate of approximately $780,
0G0 a month"
Nebraska's problem is different.
Grain growers and large scale
farmers attempted to obtain gaso-
line for their tractors tax free I'M
der terms of the original package
law.
Excise Tax Imposed
This interstate regulation pro-
hibits taxing gasoline shipped into
a state il delivered in the original
package" and used by the purchaser.
To prevent this enormous leak in
state revenues, the legislature placed
a Accent excise tax on all gasoline.
Texas, with a tax of cents a
gallon, also has felt the greed of the
tax evader. Six inspectors now are
touring the state searching for
evaders. Their task was simplif1ed
when law was passed applying the
tax at the refineries.
Approximately 200 suits have been
filed by the attorney general of
Texas for recovery of tax. 1t is
estimated that the new law will save
about 100000 a year for the state.
A secret investigation of gasoline
tax evasion is under way in
Michigan. 1t is known that dilution
and bootlegging of gasoline are
practiced. The inquiry will deter
mine to what extent.
Wisconsin. Iowa, Minnesota, and
Ohio reported little or no gasoline
bootlegging.