The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-02-11
DUNCAN IS
ORDERED TO
serve Term
Federal Judge Refuses
Appeal of Lawyer for
Suspended Sentence.
STEVE GHOST APPEARS
Admits Receiving Vanished
Government Check From
Dragons Aid.

The ghost OF Lne power Oh II. y.
Stephenson, former klsn grand
dragon, now serving life sentence
for murder, was brought into federal
court today during hearing by Fed
eral Judge Walter G. Lindley of the
clamency petition Of Attorney Rus
sell Y. Duncan, sentenced nearly a
year ago to two years in prison IN
connection with disappearance OF a
government check
Lindley denied Duncan's appeal
for suspended sentence and ordered
him into custody of the marshal.
Duncan was to be taken to Leaven-
worth penitentiary this evening.
Duncan admitted he got the
check from a John w. Smith,
known as Walter Smith, a hench-
man of Stephenson at that time.
After an appeal for Duncan by
his attorney, M. L. Clawson, In
which Clawson declared DuncanS
mental anguish during the past
two years had been sufficient pun
ishment, Duncan took the stand
for questioning by Albert Ward, dis
trictl attorney.
Tells of Refund Check
= 'You stated at your trial that you
got the SIS 900 internal revenue tax
refund check from John w. Smith,
to whom it was made payable. is
that true?" Ward asked.
"Yes. 1 do not know how 1t got
out of the revenue office, but 1t
came into my possession exactly as
I testified"
When Clawson urged Duncan TO
tell all he knew, Duncan asked Tor
a private hearing, which was re-
fused.
"Smith was an indianapolis man
interested in getting contracts for
shirts and pants made in penal IN
stitutions," Duncan said. He was
a man that I had plenty of conf
dence In"
who was he?n Ward asked.
''He was an assistant of D. G.
Stephenson"
Ofu1cS hCCdllll6 OCoAS
"What was his other name2"
Sometimes he was called Wai-
ter Smith and he lived in the $500
block University avenue, ! be-
lieve," Duncan replied.
5 When Duncan denied having re-
ceived any other checks from
Smith, Ward produced a copy OF a
s759 government check issued
April IL. 1924, about the same time
as the first check on which Dun
can was convicted. and made pay
able to Harry c. Gilbert, who died
in 1921. Ward offered to introduce
the widow of Gilbert as a witness.
Duncan denied recalling the
check. although he said the sigma
t,lre looked like his signature.
at have handled thousands OF
checks since then" he said. Il was
earning. as a lawyer, from 5000 to
$1,000 a month at that time and
I can't recall all the checks I re-
ceived.'
Ward produced the J. F. Wild &
Co. bank ledger of Duncan's account
at that time.
''Where did you get the 1918
check represented by this deposit?'
Ward asked
Maybe 7 earned it" Duncan re-
piled.
Law Not Satisfied
When Ward asked why Duncan
had not revealed these facts at his
previous trial, Duncan replied;
''I wanted to take care OF 1t Ike
a good scout. I just wanted to keep
things down"
In answer to Ward. he admitted
he didn't want to mention Stephen
sons name in public and for this
reason asked private hearing.
He denied Stephenson got any OF
the proceeds from the check, and IN
answer to a question from Clawson
denied that w. Lee Smith former
Klan official serving a federal
prison term in connection with the
interstate motor theft conspiracy
case. was walter Smith"
Duncan said he believed Smith got
a prison shirt contract and sold 1t.
In denying the clemency appeal
Lindley said he felt perhaps Duncan
had suffered enough punishment as