The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-03-01
Another Set of Documents
Given Grand Jurors in
Kokomo Bank Quiz.
INDICTMENTS ARE SEEN
Partial Report Is Likely by
Saturday; Crowds Greet
Witness.
BY CHARLES Z. CARLL
lines STAFF CorrespOndent


KOKOMO, Ind, March I'D. G.
Stephenson climaxed his bank scam
dal testimony before the Howard
County grand jury today by taking
before that group original docu-
ments from his black boxes" which
never before had been shown 10
prosecuting authorities.
Stephenson, eX-Klan chief, fin
ished his testimony at 11:01 and
after a few minutes conference with
his attorney, Olin r. Holt, of this
city, was started back to Indiana
State Prison, where he is serving a
life sentence for murder.
Stephenson, who was before the
jury six hours Wednesday, went be-
fore the jury again at 9:10 this
morning. At 10 he went into con-
ference with Holt.
Half an hour later Stephenson
went back into the jury room with
two handfulS of documents,
kilograms, papers and notebooks.
Documents in Black Boxes
Holt declared the documents orr
ginally were In the black boxes in
which the ex-Klan leader secreted
evidences of his political intrigueS
when he was in power. They later
we're removed from the strong boxes.
before the boxes and their contents
were taken before the Marion
County political probe grand jury,
and this morning was the first time
they had been shown to authorities,
the attorney said.
The documents were delivered to
him by a mysterious messenger"
Holt said. It was learned the mes
Senger was L. G. Julian, former
Evansville business partner of Ste
phenSon.
AS Stephenson's testimony came
TO a sudden end. the report grew
that the jury might have enough
evidence from Stephenson alleging
the existence of a "bank ring" levy
ing toll Of per cent for deposit
IF State funds in small Indiana
banks, to warrant indictments.
The jury may report Friday or
Saturday, it was said.
A high State official might be in
dicted, it also was reported.
Although the information the ex-
Klan chief gave the jury was
guarded carefully. it was under
stood that he told an amazing tale
of conspiracy of the politicians and
State officials he controlled in the
days he was "the law" in Indiana.
Tells of Oil Company Formation
Stephenson also is understood to
have told of the formation of the
Hot Spot Oil Company of Lafayette,
In which Ora J. Davies, former State
treasurer, and Ed Bowen, Ninth dis
trict Republican chairman, we're in
terested.
Davies is under indictment
charged with collecting l per cent
for State funds he deposited in the
American Trust Company Bank here
while he was State treasurer. 1t is
the crash of this bank that the
grand jury is investigating.
It is understood Governor Ed
Jackson's name was frequently men,
toned.
Through his attorney, Olin r.
Holt, Stephenson issued a statement
late Wednesday, declaring he was
pleased to be in Howard County to
see many of his old friends.
A large crowd lined the street and
jammed city hall, where the jury is
sitting, each time Steve went before
that group.
Surprised at Remy
"I am very surprised that Mr..
Remy prosecutor William H. Remy
of Marion County, was unable to
make the case against Governor
Jackson" Stephenson also said, ac-
cording to Holt.
Had he asked me the proper
questions I am sure I would have
been able to show overt acts prov
ing concealment."
Stephenson also, Holt said,
criticised Remy for not introducing
Jacksons letter to Boyd Gurley,
editor of The Indianapolis Times,
in which Jackson denied the con-
spiracy to bribe former Governor
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