Evening star., 1944-01-25
0PA Reveals
Huge Theft Of
Fuel Coupons
d Here Linked With
Illegal Tickets for
900, 900 Gallons

ZU,UUU,VUU salons
Four men arrested earlier thi!
month in connection with illici
trafficking in gasoline ratior
coupons today were linked BY
OPA officials with the theft Of
fuel oil and gasoline coupons es.
timated to total 10000, ,00(
gallons.
The men, all out on bail, are
James c. Mcdaniel, %, of the 1906
block of Florida avenue NE; Major
Mitchell, "a, of the 1900 block OF
Union street S.W.; Andrew jackson
43, of the 1900 block of Union
street SW., all colored, and Sam
Kushner, 3S, of the 1000 block o1
M street NV.
District OPA director Robert K
Thompson said circulation of the
coupons, which were genuine and
not counterfeit, was centered ir
Pennsylvania, where the leakage
first began to show. Some gasoline
tickets were disposed of in the Dis
trict, but thus far, he said, no fuel
Oil coupons had been found. Mr.
Thompson said the number of gall
Ions involved was an OPA estimate
No actual count was available either
here or at the regional Office at
Harrisburg, Pa, where an extensive
investigation is under way.
Local Firm Involved.
Theft of the coupons was not a
"well-conceived plot" Mr.. Thomp-
son said. 1t did not involve organ
lied pilfering of local ration board
Offices, although numbers of bur-
glaries of these places have been
reported in the last several months.
The investigation which brought
the thefts to light was begun about
the middle of December, the local
OPA director said, after Harrisburg
reported illicit coupons were show
ing up in that region. Retracing the
course of the tickets eventually
brought OPA Investigators to Dis
trict paper company, where coupons,
which had not been issued to ra-
ton boards for public distribution,
pending the issuance of a new type,
were sent to be shredded and shipped
to Pennsylvania paper mill.
Mr.. Thompson said the first break
In the case came early this month
with the arrest of Mcdaniel and
Mitchell, after they had approached
a Georgetown service station opera
tor with an offer to sell him cou-
pons. From them the tickets were
said to have been traced to the
Penn Paper and Stock Co., where
jackson was arrested. Kushner was
taken into custody about week
later by Secret Service agents and
local detectives. 1t was first believed
the coupons found in his possession
might be counterfeit, Mr.. Thompson
said.
Tickets Taken From Bin.
Jackson, who was employed by the
Penn company, is believed to be
the key man in the case, accord
ing to Mr. Thompson. The OPA
director said he was able to recover
tickets from a bin. into which they
were funneled for baling, after pass
ing through a shredding machine.
This machine, Mr.. Thompson said,
did not shred fine
enough to destroy the coupons.
The coupons are placed in the
machine on the second floor of the
paper company's plant and drop into
a bin on the ground floor. At least
one inspector from the local OPA
board was stationed on the top floor
to make sure all coupons were placed
in the shredder, Mr.. Thompson said,
and national OPA headquarters also
had guards present for that purpose.
however, no inspector
watched the baling process.
OF Long Duration.
Theft of the coupons apparently
had been going on since October,
Mr.. Thompson said. but escaped
notice until the Harrisburg office
an increasing number of
arrests in that vicinity and the re-
covery of illicit tickets. The New
York regional office, which has juris-
diction over the District. was roti-
fed at once.
Mr.. Thompson said circulation of
the tickets would not affect District
gasoline and fuel oil supplies as far
as he could see and would have no
bearing on any shortages that might
arise. The principle effect, he said,
would be felt in Pennsylvania.
Mr.. Thompson said OPA records
showed approximately $4,000 pounds
of coupons, more than half from
the local Office. had been sent to
the Pen Paper and Stock Co. for
conversion into waste paper. The
company holds the contract for dis
position of all Government waste
paper in the city.
Bowles Issues Statement.
Price Administrator Chester
Bowles, taking formal cognizance
of the matter, issued the following
statement:
Il have asked the enforcement
to fix responsibility for
this regrettable happening and to
take immediate steps to see that
1t cannot happen again"
While no more arrests are ex-
pected in the District, an OPA
spokesman said several other per-
sons are sought in connection with
the investigation, which has ex-
tended into several Eastern sea-
board States.
An employe of the Penn company
said the shredding machine could
not deliberately be adjusted to per-
NIT the flow of paper without dam
age. 1t is probable, however, he
added, that some coupons did go
through without being macerated.
Mr.. Thompson said the coupons
were of all denominations. They
we're obsolete for issuance from ra-
ton offices, he said, but valid for
gasoline and fuel oil in the public's
,oydc