The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-02-29
Prisoner Called in Probe of
American Trust Com
pany Failure.
FEARS PRISON TORTURE
Former KIan Power Says
He breads Fate When
He Returns.
BY CHARLES =. CARLL
Times stan CORRESPONDENT

kOkOMO, IND, Feb. Sd. Q.
Stephenson, former Klan grand
dragon, today went before the
grand jury investigating the crash
of the American Trust Company
Bank here and presumably told the
jurors what he knows of alleged
State banking graft.
But he talked only after being
promised a half-hour'S conference
with his attorneys before being re-
turned to Indiana State Prison,
where he is life prisoner, declar-
ing that he feared the worst
torture in the history of the coun-
try when he returns TO the prison.
Tuesday Stephenson was before
the jury five minutes, when he
stated he could not testify until he
talked to his attorneys. Circuit
Judge John Marshall granted him
the conference and he was taken to
county Jail, where he spent the
night.
Hold Short Farley
Attorneys Olin r. Holt, this city.
and Lloyd Hill of indianapolis
went into conference with him, but
the Michigan City guards who
brought Steve here stopped the con-
fab within less than an hour. They
had directions from the prison not
to let him confer with any one for
more than an hour. they said.
This morning Stephenson went be-
fore the grand jury at 9:10. A few
minutes later Prosecutor Homer Mil
Ter appeared before the judge and
said that Stephenson, when asked
what he knows about the American
Trust failure, demanded that he be
promised a half hours conference
before he starts back to prison.
Miller said that Stephenson de-
clared "if he talked freely and gave
substantial information, he (Ste-
phensOn) would be subject to the
worst torture in the history Of the
country"
Judge Marshall promised the con-
ference and Miller took the word
back to Stephenson, who had re-
manned in the jury room.
The ex-Klan leader was with the
jurors from 910 a. m. to shortly
after noon, when he was taken back
to the county Jail for lunch. He
was expected to go before the jury
again this afternoon.
''Mr. Stephenson is telling a full
story" Prosecutor Miller said.
McCray Call In Doubt
Miller said he did not know
whether he would call former Gov
ernor Warren T. McCray before the
jury, but rather indicated he would.
The probe of the bank crash likely
will continue for week or ten days,
he said,
Stephenson seemed cheerful and
waved and called hello" to news
paper men when the jury took a
f1fteen-minute recess this morning.
Deputy Warden G. w. Craig of
Michigan City stopped newspaper
men who stepped forward to shake
hands.
Stephenson was dressed in the
same dark pin-striped suit he wore
when in Indianapolis to testify at
Governor Jackson's trial two weeks
ago. He did not seem as healthy as
he did then. He was noticeably
pale.
Stephenson said he wanted to
confer with Clarence Benadum,
Muncie attorney, as well as Hill and
Holt.
Governor Ed Jackson's name is
expected to be prominently nlen-
toned in the grand jury testimony.
1t is understood the jury and
Prosecutor Miller will ask Ste
phenSon to tell what he knows
about JackSons political dealings as
secretary of State and Governor.
The jury also is planning to ask
Stephenson what he meant when
he told officials that Lafayette, Ind,
was one of the "rottenest spots in
Indiana"
Grover Bishop, a receiver OF the
American Trust Company of this
city, preceded Stephenson in the
jury room Tuesday. He went in
armed with documents that related
to the failure of the bank, Klan-
supported institution, last Sep
tember.
Luther Symons and Thomas D.
Barr, State banking examiners, and
Ora j. Davies, former State trea-
surer, and eight other persons, in
Guiding bank officials, we're in
dicted. Symons and Barr face
charges that they were aware of the
alleged insolvency of the institution
and Davies because ne is said to
have obtained per cent on State
deposits in the American Trust