“The Lanier University has existed for only a few years. It has been a Baptist institution of learning, operating under a charter granted by the State of Georgia and controlled by a board of trustees of fifteen men. Some time in July, this year, representatives of this university approached Colonel Simmons and myself with a proposition to purchase the university outright and assume, of course, its debts, which amounted to $50,000. We had our attorney to investigate the matter fully and we found the indebtedness much larger than claimed. We therefore rejected the proposition to purchase and submitted a counter proposition. The counter proposition was accepted and was in substance as follows: First, that the managing board elect Colonel Simmons president of the university. Second, that they agree to make it nonsectarian. Third, that the present existing board elect new trustees, as named by Colonel Simmons, the present board resigning in their favor.
“Now, following that is other information, the material part of which is that the Klan paid to this university $22,474.32, a part of which was out of the Klan treasury and which is not secured in any way.”
Mr. Williamson testified that he had gone over the books of the organization and had found that while the financial records of the organization had been accurately kept since June 15, 1921, there had been no accurate record kept prior to that time, embracing a period of one year during which time the Klan had been propagated under the contract of E. Y. Clarke, printed in a previous chapter. The gross receipts of the organization, according to Mr. Williamson were $1,148,710.97; the books showed 85,126 members; and statements of Clarke placed the membership at 126,000. The Post-Office Inspector stated that prior to June 15, 1921, about $151,000 had been spent by the organization, but that he had been unable to secure any statement as to the manner in which it had been disbursed. In utter disproof of the claim that the organization had been established for benevolent purposes, it is interesting to follow a part of the testimony of Mr. Williamson in detail:
“Mr. Campbell. The ritual of the order and the proclamation hold out the order as one for benevolent and high purposes?
“Mr. Williamson. Yes, sir; and not for selfish profit.
“Mr. Campbell. What did you discover with respect to the use of money for beneficial purposes to the public?
“Mr. Williamson. Well, when I went to Atlanta I found that the imperial palace itself, which had been bought in part with Klan funds, was in the name of Mr. Clarke. I found that the home of Mr. Simmons, which had been bought in part with Klan funds, was in Mr. Clarke’s name. I found also that some $21,000 of Klan funds had been given the Lanier University without security. And in that connection I might say this: That whenever anybody pays his $10 for the purpose of joining this Klan, he is given a receipt which says that this money is received in trust for the Knights of the Ku Klux Klan (Inc.). That is printed on each and every receipt.
“Mr. Campbell. What is the amount that has been paid out for salaries of officers in Atlanta—out of the money that has been collected, if you know?
“Mr. Williamson. Well, I can tell you that, from the propagation department alone, $15,247 has been paid as executive salaries.
“Mr. Campbell. To whom has that been paid?