Atlanta Daily World

Revenuers Act Following League Plea Reveal Deputies At Meeting Held In Atlanta Area

NEW YORK—(ANP)—T-Men of the U. S. Treasury department have been set on trail of the Ku Klux Klan as a result of a plea made by the Non-Sectarian Anti-Nazi league, backed up by Rep. Arthur Klein of New York, the league revealed this week.

The revenuers have gone after the Kluxers on account of an unpaid federal tax bill for $685,305.08 owed by the Klan. For the past two years the three-quarter million dollar lien has been collecting nothing but dust in an Atlanta court, the Anti-Nazi league charges.

Grand Dragon Samuel Green doesn't know it, but two T-Men were standing within a few feet of him as he conducted the mass Klan initiation on Stone Mountain, Ga., July 23 the league said.

LETTER TO KLEIN

This revelation was made in a letter from Acting Commissioner of Internal Revenue Fred S. Martin to Rep. Klein, advising that "The secretary of the treasury referred to this bureau for appropriate attention your telegram endorsing the suggestion of the Anti-Nazi league that treasury agents be on hand to impound any fees collected by the Klan incident to a public initiation on Stone Mountain."

Two deputy collectors were assigned to the mountain, Martin reported, but failed to see any money change hands.

Pressing for more determined effort to collect the tax money owed by the KKK, the Anti-Nazi league has wired acting Revenue Commissioner Martin that the Klan's purse strings are held by the Grand Dragon Green and a Klegrapp named "Waters."

Claims by the grand dragon that the resurgent Klan is not liable for the tax debt run up by the dissolved Klan corporation are "flimsy" the league said, pointing out that "it is a basic principle of law that a lien follows the property."

USE WITH PROFIT

The resurgent Klan is "using with much profit" such properties of the Klan corporation as the copyrighted Kloran ritual, propaganda booklets, patented robes, regalia, and insignias, the Anti-Nazi league charged.

In its wire to the Commissioner, signed by Administrative Chairman James H. Sheldon and consultant Stetson Kennedy, the league said it is forwarding photostatic copies of these properties, and added that its undercover "observers" inside the KKK stand ready to testify that they are in current use.

"If the bureau of internal revenue will simply inform the Kluxers that they must pay off this three-quarter million dollar debt, the Klan will be out of business overnight for all time," Kennedy predicted.