The Republican. [volume] (Oakland, Md.) 1877-current, 1939-02-02
SYSTEM OF FALSE CLAIMS
ON TAX REFUND EXPOSED
Three Accident Men Under Ar
rest For Obtaining Money From
State Under False Pretenses
OBTAINED AT LEAST $500

A systematic plan of entering false
claims for refund of the tax on motor
vehicle fuel, which has cost the state
of Maryland at least 5000 within the
past year, has just been uncovered
here by Neil C. Fraley, States At
torney, and other county officials and
has resulted in the arrest of three
young men of the Accident community.
Darl Harding, "a, was arrested in
Akron, o., last Thursday, where he
was visiting a sister, and was brought
to Oakland last Saturday where he
was placed in the county jail. Robert
Rush, 10, and Blaine Miller, %, were
also arrested and the two latter are
under bond of $1,000 each.
Fraley said the three were charged
with obtaining money under false pre-
tense, defrauding the Comptroller's
office of the State of Maryland, and
that possibly a charge of forgery
would be lodged against them. The
nature of the offense makes possible
also a Federal charge-that of using
the mails to defraud.
Fraley said that Robert Rush had
confessed to participating in at least
fifteen instances of filing claims
against the state for tax refund and
that Harding and Miller had admitted
knowing about them" The Maryland
law authorizes a refund of four cents
per gallon on gasoline used for air
planes, farm machinery, motorboats,
and stationary engines, ETC., where the
engine is not used on the highways.
Blank claims were obtained from
various garages in Oakland, Accident,
and Grantsville, and sales slips indi-
Gated that the specified amounts OF
gasoline had been purchased were
made out, properly signed and marked
'paid", and attached to the claims
that were sent to the Comptroler's
office. A book of sales slips had been
"swiped", one of the parties admitted,
from the Tri-State garage in Acct
dent. There were also sales slips
that had been stolen from other
garages.
In the claims filed the parties eX-
planned that the gasoline was being
used for corn shredders, choppers,
wood saws, tractors, threshers, and
other farm machinery. Mr.. Fraley
said the claim upon which they caught
the parties was one for $50 gallons
of gas supposedly used between Oct
ober and December Is, amounting to
$500, by fictitious person at Nc
Henry. The check was never cashed.
In some instances those involved
made out claims in their own names,
while in others they would make out
claims for fictitious people, and then
after a few days call at Postoffices in
McHenry, Friendsville, Grantsville,
and Accident, asking for mail for par
ties whose name had been signed to
the claim, and to whom the comptrol-
Ter had made the check payable. These
checks, Fraley said, would then be en-
dorsed and cashed.
The claims, Fraley stated, averaged
about $500. 1t appeared that the
practice had been carried on for pos
sibly a year, perhaps longer, he sur
missed.
After questioning Harding, Rush
and Miller thoroughly Mr.. Fraley an
nounced that possibly others would
be involved, but as yet no other ar
rests have been made.
Records at the office of the Comp
troller show that each year there are
tax refunds on gasoline amounting to
approximately 100000, whether there
have been other cases in which the
State has been paying false or padded
claims, is not known.
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