The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-10-15
Indiana Paid $1,000, 900 to
KIux Golfers, Asserts
Life Prisoner.
INSIDE STORIES Barred
Former Dragon Bitter in
His Attacks on Wizard
Hiram Evans.
BY ROBERT L. BEARD
Times Staff Correspondent

INDIANA STATE PRlSON, :,
MICHIGAN CITY, Oct. 15.-
D. c. Stephenson made $780,
900 from his Ku-Klux Klan
connections.
The former Indiana klan grand
dragon, now serving life term here
for the murder of Miss Madge Ober-
holtzer of indianapolis, disclosed
this himself today in a deposition
taken here by Attorney General
Arthur L. Gilliom.
Gilliom took the deposition for
use in his suit to oust the klan
from the state by revoking its char
ter.
Although he made $4,000 from
the khan, he lost rather than made
money on Indiana kiansmen, he
said.
Money Split Three Ways
Earlier in the testimony he had
told how the $40 initiation fee each
klansman paid was divided, IS to
the local unit, 81 to the state office
(Stephenson'S off1ce) and the re-
manning 81 to Imperial Wizard
Hira' Wesley Evans.
al. Indiana it cost $4,000 more
on the basis of the 81 to my Office
than revenues paid" he said. In
other states, however, the revenue
was twice expenses"
The $1,800,000 he thus declared
came fro mthe twenty other states
for which he earlier had testified he
was organizer at the height of his
power.
Stephenson said the khan collected
$2,500,000 in Indiana and about sew
enty million dollars over the United
States.
Roundabout" on Violence
Questioned as to acts Of. violence
attributable to the khan, Stephenson
answered, "You called for two days
conversation, Mr.. Gilliom."
The murder of Miss OberholtZer,
for which he is serving life SEN
tence, was one of the klan acts of
violence, he declared.
He charged that Evans instigated
the burning of his Irvington home
and of his yacht at Toledo.
Stephenson also declared that
willie" Lee Smith, then grand
giant and later Indiana grand
dragon, came to the Jail at Mobiles
vile while Stephenson was await
ing trial and declared he was
authorized to say that "if you
(Stephenson) will stand hitched, Dr.
Evans will frame Catholics for the
burning of your home and the
alleged murder of the Oberholtzer
girl.''
Fiery Answer to Smith
"I told Smith to go to hell"
Stephenson said.
When Gilliom asked him to give
further details of the Oberholtzer
case, Stephenson whispered to his
attorney and replied:
ION advice of counsel, since this
is to be used in appealing in court,
I asked to be excused"
Asked if khan officers usually
were armed, Stephenson said, II
never met one that didn't have a
gun and knife and often black
jack"
"Why?" Gilliom asked.
because their minds uniformly
ran to violence" Steve replied.
Tells of kidnapping.
Stephenson said he was warned
by his SubordinateS that Sam D.
Rich, former Pennsylvania grand
dragon. kidnapped 4-year-old child
in Pittsburgh and that it never was
found.
He blamed the klan for the Car
negie (Pa.) riot, in which one man
was killed, several years ago.
He told of the operations of the
Knights of the Black Robe, whose
password was Ride until DEATH"
and said they were organized by
Evans and we're used at Steuben-
vile, o., to run out of town the
Italian settlers there.
Wizard Evans ASSa1led
Frequently during the questioning
Stephenson burst out in wrath
against Imperial Wizard Hiram
Wesley Evans, who he labeled as
"chief whisperer, dispenser of poison
meat, character" assassin.
Ben H. Sullivan, Washington, at
torney for the khan, interrupted
frequently with objections, contend
ing that the testimony was irrele-
want and that the cause pending
had not been instituted by proper
officers.
Sullivan objected to the presence
Of newspaper men, giving notice
that any testimony derogetory or
libelouS to the Ku-Klux Klan or its
officers will be fought vigorously
At Stephenson's side was his at
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