The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-10-06
KU KLUX HEAD
TO FACE CHARGE

Atlanta, Oct. 6.-The denial tina
Edward Young Clark, the imperia
wizard pro tenn of the Ku Klux Klan
bad Used the mails to effect a schem,
to defraud, for which Clarke was in
dicted in the federal court late yester
day, was contained in statement o.
the Imperial Kloncilium, the rulius
body Of the Klan, and was made pub
lie here today. Clarke was released
under a $4,000 bond.
Indictment charges that Clarke col
lected money from certain member.
and officers of the Klan on the pre-
tense that the funds would be used Il
pay the premiums in surety companies
furnishing bonds to these Klan mer
and that the sums were In excess 81
the amount required and were con
verted to his personal use and benefit
Atlanta, Oct. 5.-E. Y. Clarke, i'm
perial wizard pro tenn of the knights
of the Ku Klux Klan, was indicted
by the United States grand jury here
today on charges of using the mails
to effect scheme to defraud." He
was released on bond of $500.
The charges against Mr. Clarke
who yesterday announced his resig-
nation as pro tempore head of the
klan to take effect November 10, are
based, according to the true bill rem.
dered by the grand jury, on alleged
use of the mails in collecting money
from certain members, subordinate
officers and employees of the Ku Klux
klan on the pretense that such mon
eys would be used to pay premiums
to surety companies furnishing bonds
for these klansmen.
The indictment alleged that the
sums collected were in excess of the
amount required to pay such premi-
ums, and that this excess was con-
verted to the personal use and bene-
tit of Mr.. Clarke. According to al
legations in the memorandum accom-
panying the charges Mr.. Clarke used
the mails to collect money on the fol-
lowing plan: Grand COLLINS were
required to be bonded in the amount
of $5,0OO; for which fee of $25 was
required to pay premium to bonding
companies; king k.eagles were re-
quired to furnish bonds of $4,000, fol
which a fee Of $3.50 was required
for premium and kleagles were re.
qgired to furnish .000,. for which a
Tee OF $5 was required Yor premium.
It is charged that the National
Surety company of New York was
designated in the literature sent
through the mails by Mr.. Clarke as
the bonding company and it is fur
ther alleged that the premium rates
of this company for $4,000, the
amount Of grand goblin bond, was
only SO; and that the difference In
this amount and the fee collected of
the grand goblin was converted to the
personal benefit of Mr.. Clarke, and
that proportionately smaller differ
ences on the lower bonds were
handled in a like manner.
Memoranda included in the indict-
ment charges that Mr.. Clarke mailed
letter on June 9, 1921, to George
B. Kimbro, Jr., Houston, Texas, ex-
planning terms of the bonding process
giving fee rates, and setting forth
rules for the khan regarding bonds
for employees. Another memoran-
dunn is alleged to be a copy of a let
ter which Mr. Clarke mailed to Kim.
bro on February 6, 1922, in which he
acknowledged receipt Of check fol
bond premiums of three kleagles.
In statement tonight concerning
the Indictment Mr.. Clarke termed II
another effort on the part Of the
enemies of the khan to hurt the khan
by discrediting me-"
"The ones who brought the charge
before the grand jury are all dis.
charged employees" he stated. "The
indictment will not amount to any
thing, as it is predicated on false al.
legations The money charged in
the indictment to have been received
by me was all properly transmitted
to the imperial palace, and is so or
record at the palace. The grand
jury of course heard only one side OF
the case and If they had been in pos
session of the real facts no indict-
ment would have been returned"