In 1925, the most prominent individual in the Pennsylvania Ku Klux Klan was Samuel D. Rich.
On Labor Day, September 7, 1925, a major Dauphin County Klan event was held in Harrisburg and Rich was the featured speaker and led the Klan parade through the streets of the capital city — a parade in which more than 5000 Klansmen marched in full regalia, including groups from Williamstown, Lykens and Pine Grove and probably other towns from the Lykens Valley area who didn’t get the notoriety of being named in the newspaper accounts. Estimates of attendees for the one-day event ranged from 25,000 to 30,000.
Sam D. Rich was a con-man and an avowed white supremacist from Covington, Kentucky, who came to Pittsburgh around 1923 to consolidate and solidify the development of a Pennsylvania Klan. By 1925, he had accomplished his goal.
But, 1925 was not a good year for him personally. In late January and early February news articles from the Pittsburgh area told of a civil suit brought against him by a newspaper that sought damages of at least $620,000 for an alleged breach of contract involving a stock sale. In late April, a Pittsburgh newspaper reported that this suit had been dropped. This situation had to be known by the organizers of the Dauphin County Labor Day event. Then, less than ten days after the Labor Day event and while plans were being made for a statewide Klan celebration at Gettysburg, criminal charges were brought against Rich for embezzling $16,884. He then posted bail of $25,000 and went ahead with the Gettysburg event.
As has been pointed out many times before on this blog, every person who joined the Ku Klux Klan or supported its activities knew what it stood for and most were aware of the violence and intimidation promoted by this racist group. The Klan clearly supported a nation of white Protestants to the exclusion of all others. It was anti-African American, anti-Jewish, anti-Catholic, and anti-immigrant. Those who joined the Klan had to take an oath to support the policies of the order.
The fall of Sam B. Rich did not occur until 1927, when he was connected to a lynching that occurred in 1923.
This post focuses on the two events that occurred in 1925, which should have given some pause to Dauphin County Klan members. (1) the civil suit against Rich for damages related to a stock sale; and (2) the criminal charges against Rich for embezzlement.
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From the Indiana Gazette, Indiana, Pennsylvania, February 2, 1925, a story from the International News Service (INS), image at top of post:
DISPATCH SUES TO RECOVER SUM ON STOCK SALE
Sam D. Rich Head of Ku Klux Klan in Pennsylvania Made Defendant for at Least $620,000 for Alleged Breach of Contract
PITTSBURGH, Pennsylvania, February 2 [1925] — INS — The Daily Despatch Company, owner of the new Daily Dispatch here today filed suit in the United States District Court against Sam D. Rich, head of the Ku Klux Klan in Pennsylvania for at least $630,000 for alleged breach of contract in connection with a stock selling arrangement concluded between the newspaper and rich, and damages suffered by the newspaper in connection with Rich’s alleged breach of contract.
The bill of particulars in the suit charges that Rich has not paid a balance of $18,084.61 due from stock sales plus interest from December 19, 1923, and refuses to pay the amount despite the newspaper’s repeated requests for payment. It also alleges that Rich was not registered with the State Banking Department of Pennsylvania as required by the Pennsylvania Securities Act although he had informed the plaintiff he was registered. Litigation in connection with difficulties experienced in adjusting stock selling thru Rich’s failure to register resulted in damage of at $500,000 the suit charges.
After the newspaper discovered Rich’s non-registry, the bill charges Rich was ordered to discontinue selling the stock and representing the company. Rich was alleged to have then notified all subscribers who bought stock from him in discontinuing payments causing damage of at least $70,000.
The court litigation is necessary to restore the Dispatch to its stock selling rights caused loss of at least $50,000 additional the suit also alleged.
In a statement explaining the suit, George P. Grise, president of the company said.
“The arrangement with Mr. Rich to sell Dispatch stock was purely a personal and business one between him and the Dispatch, and the Dispatch or its management at no time promised verbally or in writing that we would support or give undue prominence to news of the Ku Klux Klan.
“Our newspaper is absolutely independent, politically, religiously, morally and commercially.”
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From the Pittsburgh Post-Gazette, February 1, 1925:
DAILY DISPATCH SUES RICH FOR $70,000 ON SALE OF FIRM’S STOCK
Broker Charged With Misrepresenting His Status With Banking Unit
The Daily Dispatch Publishing Company filed a suit in Federal District Court yesterday against Sam D. Rich, a local broker, charging him with misrepresentation in connection with the sale of stock in the plaintiff company resulting in damages to the amount of $70,000 being done to the company.
The complaint sets forth that the plaintiff entered into a contract with rich on July 7, 1923, under which Rich was given exclusive right to sell 500,000 shares of stock having a par value of $5, and giving him $1 per share as commission on the stock.
The complaint states that because of the passing of the Securities Act on August 1, 1923, by the Pennsylvania Legislature, it was necessary that a new contract be made. On August 19, 1923, a new contract was drawn up giving Rich the right to solicit subscriptions for the circulation of the paper in addition to the exclusive right to sell the stock in the company. A new basis for the amount of commission to be paid Rich was made, the complaint set forth.
The complaint alleges that Rich represented himself as being registered with the State Banking Department of Pennsylvania and as being qualified by law to handle the sale of the plaintiff company’s stock. It states that he was not registered with this department and that he was not qualified to act in the sale of the stock.
On account of his not being registered with the State Banking Department, the complaint states, a great deal of litigation of the company’s affairs and difficulties in the transactions of the business of the concern was caused. Because of this damages in the amount of $70,000 are asked.
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From the Daily Notes, Canonsburg, Pennsylvania, January 31, 1925:
PITTSBURGH’S NEW DAILY SUES HEAD OF STATE K. K. K.
PITTSBURGH, January 31 [1925] — The Daily Dispatch Publishing company is sueing Sam B. Rich, head of the state Ku Klux Klan for at least $620,000 in the United States District Court for alleged breach of contract in connection with a stock selling agreement concluded between the newspaper and Rich, and damages suffered by the newspaper in connection with this alleged breach of contract.
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From the Pittsburgh Post-Gazette, April 30 1925:
DAILY DISPATCH DROPS SUIT AGAINST BROKER
The suit filed January 31 [1925] in the United States District Court by the Daily Dispatch Publishing Company against Sam D. Rich, a broker, charging him with misrepresentation in connection with the sale of stock in the plaintiff company, was discontinued yesterday when Attorney W. D. Grimes, counsel for the plaintiff concern, withdrew the suit. He was accompanied to the office of the clerk of the district court by Attorney W. G. Negley, counsel for the defendant.
In the bill of complaint the plaintiff concern sought damages to the amount of $70,000, alleging Rich had falsely represented himself as being registered with the State Banking Department and qualified to act in the sale of the stock. On account of his not being registered, the company averred, a great deal of litigation of the company;s affairs and difficulties in the transactions of the business of the concern was caused.
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On Monday, September 7, 1925, Labor Day, the huge Dauphin County Ku Klux Klan event was held in Harrisburg. Sam D. Rich had a leading role in the event, which is described elsewhere on this blog. At that event, the upcoming Gettysburg meeting was announced.
One news article from the Gettysburg event is presented here. Note that Sam D. Rich played an prominent role at Gettysburg, but more importantly, the Klan was represented by its national leader, Imperial Wizard Dr. Hiram W. Adams.
From the Harrisburg Telegraph, September 21, 1925:
KLANSMEN HOLD BIG GATHERING IN ADAMS COUNTY
CLOSE TWO-DAY CELEBRATION IN GETTYSBURG WITH EXERCISES LAST NIGHT
Gettysburg, September 21 [1925] — At 10 o’clock last night Sam D. Rich, grand dragon of the Ku Kluk Klan of the “realm of Pennsylvania,” ran down the curtain on the two-day celebration by the members of the hooded order in Gettysburg.
It was one of the most spectacular gatherings ever assembled in Gettysburg.
One of the big events of the gathering for the Klansmen themselves was the initiation ceremonies which began at 10 o’clock Saturday night, when high officials of the organization exemplified the second or K-duo degree. Approximately 5,000 first-degree members of the order were passed to the higher degree in this ceremony which lasted several hours. The burning of a the large cross, with the accompanying exploding of bombs came just as the clocks were striking the midnight hour.
Own Religious Service
The exercises yesterday were largely of a religious character. They got under way at 7 yesterday morning when reveille was sounded in the camp on Oak Ridge by the Dauphin County junior band. These Dauphin County youngsters, members of the junior Klan, also conducted the flag-raising ceremonies an hour later.
Instead of coming into the churches of the town, the Klansmen and Klanswomen held their own religious services on the field, Sunday School being held at 9:30, with the lesson being taught by the Rev. Bruce Lehman, of the Pennsylvania “realm.” At the church service, which followed, the sermon was preached by the Rev. Dr. John A. Tabor, of the Texas “realm.”
The features of the day and the event for which thousands of the members of the organization remained in Gettysburg over Sunday, was the Lodge of Sorrows, conducted by the New Kensington Lodge, with Mrs. Ethel Heidler as soloist and the Montgomery County quartet to furnish the music for the exercises which began at 11:30 o’clock.
Imperial Wizard Speaks
At the close of the ritualistic rites, Dr. Hiram W. Evans, of Altanta, Georgia, the imperial wizard, made the memorial address.
The forty-acre tract was crowded with the Klansmen of Pennsylvania and their families with Klan visitors from at least six other states, and many visitors of Gettysburg and the surrounding country present. So crowded was the field that many were unable to hear.
Religious services again formed the program for the night, a community sing preceding the sermon preached by the Rev. Dr. Hartranft, of the Pennsylvania “realm.”
Sam D. Rich conducted the formal closing exercises.
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What happened about a week before the Gettysburg event was reported in a United Press release that found its way into at least three Pennsylvania newspapers.
From the Wilkes-Barre Evening News, September 1925:
KU KLUX KLAN LEADER IS ARRESTED AS THIEF
Pittsburgh, Pennsylvania, September 15, 1925 — Arrested on an information charging embezzlement of $16, 884, Samuel D. Rich, reputed leader of the Ku Klux Klan in the Pittsburgh district, is at liberty today under $25,000 bail.
The information which brought about the arrest was made by George P. Grise in the name of the Daily Dispatch, a newspaper which appeared on the streets during the early spring.
Rich will be given a hearing tomorrow.
A similar article was found the Connellsville Daily Courier, September 15, 1925, but with a different headline:
KLAN LEADER CHARGED BY DEFUNCT NEWSPAPER WITH $14,000 THEFT
And also, a similar article in the Indiana Gazette, Indiana, Pennsylvania, with a different headline:
ALLEGED KLAN LEADER TAKEN
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From the Pittsburgh Press, September 15, 1925, an expanded version of the United Press release:
SAM RICH IS ACCUSED OF EMBEZZLEMENT
Arrested on an information charging embezzlement of $16,884, Samuel D. Rich, with offices in the Wabash Building, and reputed as a leader of the Ku Klux Klan movement in the Pittsburgh district, was at liberty today under $25,000 bail.
The information which brought about his arrest was made in the name of the Daily Dispatch, a newspaper which appeared on the streets of Pittsburgh during the winter.
Rich will be given a hearing before Alderman M. A. Riley, Thursday at 1 p.m.
George B. Grise, publisher of the short-lived Dispatch declared today that Rich had a contract with the Daily Dispatch Publishing Company by which he was to sell stock of that company at $5 a share, that Rich had failed to make an accounting of stock sold, that it had been found he sold about 25,000 shares, mostly to Klan members, and that auditors employed by the publishing company have charged Rich with $16,888.16 due.
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From the Pittsburgh Daily Post, September 16, 1925:
RICH IS CHARGED WITH EMBEZZLING $16,884, GIVES BAIL
Alleged to have embezzled $16,884.61, from the “Daily Dispatch,” a newspaper which was formerly printed in Pittsburgh but now out of existence, Samuel D. Rich will be given a hearing before Alderman M. A. Riley tomorrow afternoon.
Rich was arrested several days ago on a warrant charging him with embezzlement. The warrant was sworn to by George P. Grise, one of the owners of the defunct newspaper. Following his arrest, Rich was released on $25,000 bail to appear before the alderman. According to the information, Rich embezzled the amount stated in the information which had been sent to the newspaper by customers for advertising.
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From the New Castle News, New Castle, Pennsylvania, September 17, 1925:
EMBEZZLEMENT SUIT AGAINST PITTSBURGH KLANSMAN WITHDRAWN
(International News Service)
PITTSBURGH, Pennsylvania, September 17 [1925] — The $16,884.61 embezzlement suit brought against Samuel D. Rich, alleged Pittsburgh district Ku Klux Klan leader, by George B. Crise, publisher of the Laze Daily Dispatch, has been withdrawn.
M. J. Hosack, Rich’s attorney declares that the plaintiff will be obliged to sign a written withdrawal. In his complaint Crise had charged that he sold Dispatch stock chiefly to Klan members and had failed to make an accounting.
This last article was only found thus far in the New Castle News and in the Harrisburg Evening News of the same date. It is not known why the information was not more widely distributed that the criminal action had been withdrawn, nor was any reason given why the action was not pursued any further.
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News articles from Newspapers.com.
Corrections and additional information should be added as comments to this post.