The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-02-28
LITER to Face Grand Jury in
Kokomo, in Inquiry of
Financial Crash.
M'CRAY MAY BE CALLED
Sensational Disclosures to
Involve 20 Officials,
Prisoner Hints.
BY CHARLES C. CARLL
Times Staff Correspondent

AAOAAO4NAO, 1llQ., GU. Co., "
Stephenson, former Indiana Klan
leader, came from the Indiana
State Prison once again today to
tell more of what he claims to
know about various phases of In
diana political corruption.
Former Governor Warren T. Nc
Cray and Robert Bracken, Indian
apolis, former State auditor, may
be witnesses before the end of the
week, it was reported
This time Stephenson is to tell
the Howard County grand jury an
amazing tale Of banking intrigue"
as part Of the jury's probe into
affairs of the defunct American
Trust Company here.
Stephenson and his guards ar
rived early this afternoon. Prose-
cutor Homer Miller said he may not
be interviewed until Wednesday. The
prisoner will be kept in the Howard
County jail.
Attorneys Wait Arrival
His local attorney, Din r. Holt,
also a Democratic candidate for
Governor, and Lloyd o. Hill, his In
dianapolis attorney. awaited his ar
rival at the city building, where the
court sessions are being held while
a new courthouse is being planned.
A writ from the court of Judge
John Marshall was served on prison
officials and that is what brings
Stephenson here.
Despite the orders of the court
that no word shall get out about
witnesses, the town is awaiting for
Stephenson. There was a current
belief that Stephenson might refuse
to testify, as he did in the trial of
Governor Ed Jackson at Indian
apolis less than two weeks ago. Holt
and Hill announced they are ready
to confer with the former Klan
leader and say they will tell him to
tell ALL"
Promises Startling Story
Visited at his cell several weeks
ago by Howard County Prosecutor
Homer r. Miller and Grover Bishop.
one of the trust company receivers.
Stephenson said he would tell the
names of at least twenty public Of
f1cials who he said we're implicated
in State wide banking corruption.
When Stephenson gets here he
will be rushed to the city building
and into a six by fifteen library that
is being used as the grand jury
room. There he will be asked ques-
tionS that may bring Howard County
ahead of Marion as a probe center
In the stuffy, ok-lined room, the
former klan power will face the five
men, one woman, the prosecutor and
the official reporter. He will be
placed with his back to a window
facing the side of the Elks' Club and
talk down the narrow table to the
jurors. Miller will sit at the other
end and fire questions.
Great Secrecy Maintained
While all this goes on, the jury
door will be locked tight from the
outside and Bailiff Jack Burrows
will exercise care that no one vio-
lates the court order.
The American Trust Company
failed here last September. 1t was
a Klan bank and w. H. Arnold, for
mer president, is now avoiding eX-
tradition in Florida,
Eleven persons, including Thomas
D. Barr and Luther SymonS, State
banking commissioners, and Ora
Davies, former State treasurer, have
been indicted
Barr and Symons are alleged to
have known of the banks condition
and failed to report it, while Davies
is alleged to have received one per
cent on States funds deposited in
the bank.
Stephenson entered the case when
receivers found out that he had
$4,000 in cashiers checks made out
to him. Stephenson admitted in his
cell that part of them were legiti-
mate and the rest graft"
Checks Payable to Barr
The receivers say they also
learned that $4,000 in checks we're
made payable to Thomas D. Barr Jr.,
whose mother, wife of the deputy
bank examiner, was State organizer
Of the Kamelia, Klan auxiliary.
The Klan still is considered a
political power here and plenty OF
persons are waiting the chance to
see the lifer. Several have ex-
pressed the desire to be informed,
when he comes, because 1--WE want a
look at him."
Stephenson last appeared here
when he addressed local club on
''Good Citizenship" a few weeks be-
fore he was arrested for the muir
der Of Madge Oberholtzer.
In July, 1923, he and Court Asher,
former lieutenant, zoomed out Of
the skies in a gllded airplane before
a crowd estimated at 100000, COM
posing the largest Klan meeting
ever held.
At that time he was crowned
grand dragon of the Indiana Klan
and was garbed in purple robes.