The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-12
$4,000 AUTO
LICENSE DEAL
IS UNDER FIRE
Printing Contract Probe to
Be Asked in House by
Rep. Galloway.
U. S. AGENTS ON TRAIL
Details of Business With
Illinois Firm Called
'Gravely Peculiar
BY BEN STERN

Demand that the house of repre-
sentatives investigate fully and fix
the blame for the "gravely peculiar"
S02,4OO drivers license printing con-
tract, now under investigation by
federal authorities in Indiana and
Illinois, is expected to be made
wednesday in a resolution present.
ed by Fred Galloway Dem), In
dianapoliS.
Galloway announced tocay that
he had asked the opinion OF Attor-
ney-General James M. Ogden on
the power of a house probing COM
mlttee to summon witnesses and
take testimony on the contract en-
tered into by Otto G. Fiield, Crown
Point, former secretary of state.
"Details Of this contract, now I'M
der federal investigation, are so
grayely peculiar that the best inter
eSts of the state would be served if
the house appoint a committee to
summon and question witnesses and
report its findings and recon-
mendations to the legislature for
further investigation, he asserted.
PrObed by U. S. Agents
For more than a year federal au-
thorities in both states have been
seeking information regarding in
come tax evasiohs, linked with the
contract. Information concerning
caShing of state checks has been
revealed, it was learned.
The Times also learned that one
of the two checks and its voucher
for $42,400 have disappeared from
the files of the auditor of state.
Records reveal that Fifeld called
for bids for auto drivers licenses
in 1929, following the legislative
session which enacted the licensing
law.
Contract for printing 1000, 900
license certificates and containers
was awarded the firm of Ohlhayer
q Burkhart of Aurora, Ill, which
claimed to have patented certifi-
cate, for $50,
1t also was revealed that the Hav-
wood Printing Company, Lafayette.
one OF the state printing contract
ors, had done the actual printing.
At the second letting the company
bid only $40 for an additional mil
lion, because the company knew
sufficient number was on hand to
last three years.
Called $4,000 Job
In fact, the secretary of states
department has in stock today ap-
proximately 100000 surplus GER
ti1cates, it was said.
A representative of the HAYWOOD
company told state officials, after
the letting of the original contract
to Ohlhaver & Burkhart. that his
firm could handle the printing Job
for $4,000.
Federal investigators later learned
that the Haywood company charged
the Illinois firm $4,000 for the
printing work and that Ohlhaver 81
Burkhart contributed only the
license form.
The first contract check for $40
900 was paid Ohlhaver g. Burk-
hart July 9, 1929. it liz known.
Federal authorities are reported to
have questioned the partners as to
why they did not pay income tax on
the $50, 400, and learned that thew
had not kept all the money, but
stated that it had been divided
among several persons.
Traced to City Trust
William A. Ohlhaver and C. T.,
Burkhart took the $4,000 check to
the defunct City Trust COMPANY
and cashed it for several drafts
drawn on Chicago bank and one
Indiana national bank, records re-
veal.
Galloway says he has information
that the partners were accompanied
by the head of the Haywood COM
pany, who was reported to have been
given a draft for $4,000; James L.
Bradley, former head of the auto
license department; and the late
Clarence Fait of Lake county, who
was a close friend of Fifeld and
investigator for the corporations
securities division.
Several drafts are reported to
have been traced to northern In
diana and Chicago banks.
On July 30, 1929, the second pay
ment on the contract, check for
$4,000 was given the partners by
Archie N. Bobbitt, then state au-
ditor, and the same procedure of
cashing it for drafts on the City
Trust Company was followed.