The Waterbury Democrat., 1946-07-16
|Merry-G0 0-R0und

WASHINGTON July 16-How the Ku Klux Klan operates financial racket for hgh-up kluxers revealed in hitherto unpublished decision of the U. s. tax court which recently handed down opin ion regarding the Klans' one-time imperial wizard, Dr. Hiram w. Evans. Under this opinion, Dr. Evans nicked to the tune of about $30OOOO He will now have to dig down in his jeans and cough up that small amount of back taxes to the U. s. Treasury.
 How former dentist from Dallas Texas, whose practice never was anything to brag about could make enough money to $300,0O0 in taxes is one phase of xxx. activity few people hear about. Peddling hate is extremely lucrative racket The dues collected from suckers all over the LISA has made several Klan officials millionalres
 However, in this case, Dr. Evans, in addition to source of income. He had arrangement with Georgia state officials particularly ex-Governor D. Rivers, whereby he sold asphalt for Georgia road construction.
 And as part of his deductible expenses Dr. Evans claimed the cost of entertaining Georgia state off, cals. He told the Government for instance that he had spent s21,516 in 1887 for promotona" expenses; and another s15,32o in 1938 These were the years when Governor Rivers was in his prime
 The U S. Treasury however, claimed that Dr. Evans only promotional expense his friendship with high Georgia officials through the Ku Klux Klan) and that this did not entail any sales penSe. Governor Rivers member of the Klan.
 Dr. Evans also claimed that it cost him S3,9189O to repair dam his country place, named Cochran Mill outside of Atlanta, and that since this country place used for entertaining state officials the cost of repairing this dam should be deducted from his income tax.
 The U. s. Treasury however, ruled otherwise.
 Dr. Evans also set up three different dummy corporations which the Treasury claimed were merely to escape taxes. He incorporated his wife, his three children, Ellen, Cecil and Martha, and even his retary, Mrs. Vines. The latter, incidentally, drew two salaries, from Dr. Evans and the other from the klan
 This corporation paid S1 GOO month to the im- perial wizard, plus all his expenses and auto- mobile
 One very significant statement in the report of the tax court typfies the manner in which the Kan has influenced politicians in many states, including Georgia, where the Klan played close to it's member Governor Rivers
 Due to the influence of petitioner Or Evans with various state and county officials said the tax court, and his ability in obtaining contracts the business grew rapidly
 Thus the prophets of bigotry waxed wealthy by peddling hate to the gullible.
 Wayne Johnson manager of Bill ODwyer's cam paign for mayor of New York and dark horse Dem ocratc candidate for governor, is all washed up politically result of going to bat for the Erie Basin profteers. Furthermore, Johnson now finds himself partly out of his Erie Basin job
 Johnson caused dissension in the ranks of war profiteers when he hired Henry Paynter public relations man and paid him s2500 This aroused the ire Of Allen Gelman and Joseph T. Weiss the other two top executives of Erie Basin and they have fired