New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1927-07-11
INDIANA governor
LINKED UP With
khan government
Indianapolis Times Disclosing
Contents Of Stephenson's
'Iittle Black Box"
$1,000 CHECK MADE OUT
TO JACKSON Is EXPOSED

Purports to Be First Toward $780,
900 Fund for Campaign Expen-
ses but Such Checks Did not Ap.
pear in Executives Expenditure
Sheets-More Disclosures Promis-
ed In Hoosier State.
Indianapolis, Ind, July II (UP)
"A check for $500 payable to Ed
Jackson. governor OF Indiana, and
an attached note saying the
amount was part Of a $4,000 con-
tribution to the governors primary
expenses has been found in the
little black box of D. c. Stephen
son, Ku Klux Khan chieftain, the
Indianapolis Times said in copy
right story today.
The check was styled the first
concrete evidence in the Indiana po-
litical investigation which sas been
proceeding for 10 months.
No contribution of $4,000 from
D. S. Stephenson was listed on the
campaign expenditure sheet filed by
Gov, Jackson. The law provided
that all expenditures and receipts
must be detailed and the alleged ir-
regularity on Jackson's part lies in
the fact that the Stephenson $4,000
did not appear on Jackson's cam
paign account.
The check was cancelled. the
Times said, and dated Sept. IL,
1928. 1t was signed by Stephenson
and made payable to Jackson. The
attached note said:
Explanatory Note.
'"This check is the first one
fourth of the ten thousand dollars
given Jackson personally for pri-
mary expenses"
The note. the Times explained.
!, was in Stephenson's handwriting.
EStephenson at that time was the
.Ssand dragon of the Ku Klux Khan
.ntrndiapa. In 1925. two years
later, he had been Invested Of Khan
leadership and was a convict in the
pate prison at Michigan City, serv-
jng a life term for the death of Miss
Madge Cberholtzer
Convicted OF Murder.
Stephenson was convicted of muir
dering Miss Cberholtzer. She died
at her home in Indianapolis after
taking poison during trip with
Stephenson to northern Indiana. On
her deathbed she made statement
accusing the Khan chief of attack
ing her and saying she swallowed
poison to- avoid disgrace. The muir
der charge was based on the allie
CATION that he had refused her
medical attention.
AS a prisoner, Stephenson main
tanned silence for ten months. Less
than a year ago, in September, 1926,
he managed to smuggle letter out
of the prison, accusing men he be-
lieved his friends of causing his
downfall.
The letter contained other charges
declaring that the Khan had made
Indiana feudal state and that
high state and municipal officers
were its vassals.
j. Editor Publishes Letter.
A committee of members OF the
Indiana republican editorial associa-
ton, appointed to investigate rumors
Of corruption that had been current
since the 1924 state election. receiv-
ed the letter Thomas H. Adams,
Vincennes editor, made the letter
public.
The grand jury Investigations, one
featured by the refusal Of Stephen
son to testify, ended in failure. The
second was discharged because a
bride was offered one OF its men,
bers.
''Times" Has Documents.
The Times copyrighted story said
of the check it reported today that
1.-THE original and other documents
are now in the custody OF the
Times"
ut is a check the Times con-
tinued. drawn by D. S. Stephenson
in favor of Ed Jackson, now COVER
nor Of this state and then secretary
of state. The Endorsement on the
back either in his signature or Is a
most clever forgery.
PINNED to this check when 1t
was delivered to Thomas H. Adams
of the Vincennes Commercial, and
Boyd Gurley, editor the Times, was
a note.
THAT note declares this check
was one-fourth Of $4,000 given to
Jackson personally for his expenses
in the 1924 primary campaign.
That note is said to be in the
handwriting Of D. c. Stephenson.
There is every reason to believe
that this was written in the Mobiles
VILE Jail by Stephenson between the
time he was convicted and the day
he was removed to Michigan City"
Will Publish Others.
The story concluded with the
promise that other documents In the
possession of the Times will be pub
lishrd.
The letter from Hill, stephenson's
attorney in which the check was de-
livered, was addressed to Gurley.
Editor of the Times. 1t was dated
July s, 1927 and reads
"Mr Stephenson directed that
turn over to you certain papers.
am now acting in accordance with
that request In asking that ! do
this thing. 1t was Mr.. stephenson's
desire to show the people that he is
not altogether liar and fourflush-
err and that he can prove many Of
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