Indiana Klan

=== Peak of influence ===
At the height of its power the Klan had over 250,000 members. The highest concentration was in cities in the central part of the state.<ref>https://web.archive.org/web/20081018105327/http://www.centerforhistory.org/indiana_history_main7.html Northern Indiana Center for History. "Indiana History Part 7". Internet Archive, October 18, 2008.</ref> Klan membership was discouraged in some parts of the state; in [[New Albany, Indiana|New Albany]], for instance, city leaders denounced the Klan and discouraged residents from joining.<ref>Moore, Leonard.  ''Citizen Klansmen: The Ku Klux Klan in Indiana, 1921–1928''.  ([[University of North Carolina]] Press, 1991). p. 11</ref> Other cities, including [[Indianapolis]], were almost completely controlled by the Klan, and election to public office was impossible without their support. Street fights occurred in Indianapolis between the Klan members and minority groups.  Statewide, estimates of native white male Indiana Klan membership ranged from 27 to 40%.<ref>Bodenhamer, David. ''The Encyclopedia of Indianapolis'' ([[Indiana University]] Press, 1994), p. 879</ref>

With its high rate of membership, the Indiana Klan became influential in the Indiana politics and a public endorsement from the organization leadership could practically guarantee victory at the polls. This led to many Indiana politicians at all levels of government to join the Klan in order to gain their support. 

Unable to bring Governor McCray to their side, leaders in the Indiana Klan worked to uncover dirt on McCray to force him out of office. They uncovered loans solicited by McCray in a questionable way. Because the solicitations were sent by mail, they were subject to federal mail fraud laws. The Klan leaders used their influence to have McCray tried, convicted, and imprisoned for mail fraud, forcing him to resign from office in 1924.<ref name="Gugin, p. 265–266" /> Edward Jackson was elected to the governor's office that fall.

The Klan had a large budget, based on a percentage of membership fees and dues. With more than 50,000 dues-paying members in Indianapolis, the Klan had access to tens of millions of dollars. A large part of these funds went to helping the poor, but millions were also poured into bribing public officials, paying off enemies, purchasing weapons, and contributing to political campaigns.<ref>Gray, Ralph D. (1995). Indiana History: A Book of Readings. Indiana: Indiana University Press. {{ISBN|0-253-32629-X}}</ref><ref>Gray, p. 308</ref> The Klan became so powerful, and Stephenson so influential, that by 1925 he began to brag, saying "I am the law in Indiana."<ref name="Lutholtz 1993 43,89" />