Document text
FOIPA COVER SHEET
FREEDOM OF INFORMATION
AND
PRIVACY ACTS
SUBJECT: (COINTELPRO)
WHITE HATE GROUPS
SUB 8
SECTION 4
157-9
FEDERAL BUREAU OF INVESTIGATION
NOTICE
THE BEST COPIES OBTAINABLE ARE
INCLUDED IN THE REPRODUCTION
OF THE FILE. PAGES INCLUDED
THAT ARE BLURRED, LIGHT OR.
OTHERWISE DIFFICULT TO READ
ARE THE RESULT OF THE CONDITION
AND OR COLOR OF THE ORIGINALS
PROVIDED. THESE ARE THE BEST
COPIES AVAILABLE.
Or"IONAL FORM NO. I:
.AY 1O7 EDIt ON
GSA ..PM. (41 CFR) '0-1
UNITED STATES GO\ iERNMENT
Memorandum
TO , 1 -;) DATE: '
'4-
FROM A, CA'
SUBJECT: COUT.IT .:LLIGEICL; PiDGRA
>T, D LS A1LCA .C. ,
.i..Ji ' -.H u i.UX KIA )
*!:' >2 Char3 ttc letter to ". :-ur2V .6' 3 ,ni
:ui. ] ,u eau, , / 1 / 0: and '-i"i :u ... .1 -
C /2 '70.
TUART.TDLY TD H;'S .
L tn lb 1eow is curn in a m :
co un rin2 ell Ci enC :. t
Ven . ( '. 1, 1 i a 0 l cl e e o .
GCK:. h or.Z
e f e va I C C 1! Lc ,- 3,
i:0 Le
[ ::: 0 : . _ .
} -, ,(.! ... , ,P;-
i J~~~~~i{ ~. ...... -7 ........ :: :..
CE 57-281
itoin the State o: North Caroliina. Fouir of the trustees
resited outside the State of North Carol-na and they-n were not
included in the mailing. The identities o the trustes who
were mailed such notice are as follows:
Name Ci tr
r'i Pollowing this mailing an d ailnvowin. suifici en L time
jor deljivry, anonymous telephone call criti en il nture of
'the college o ur nishin fl aci ities to the "lan or it ti:on
Klo :J i:.ion were made to ic ol l wiV o f iY.cer and 1:,?f rs
oi tic 13,;ird oi TI'lusteis Ca Lawb .(1 l eIt:
rrr.
t' " "
Ti
CE 157-251
(2) In '"ormation C concerning. the Na L alti
was iu'niiishod to reliable news ,sources at te "'alisuir : P5t
SSalisbury. N. 2, and at the "Chl.rJ;otto Ost ve' , Cha'te,
N. C.. the lat:ter iving covera-i)?, thoihout he Stute oi North
Carolina. These articles ,ore ::d o : a day l so
b ec:.c the Klonvol-a tion so as nt t o ioti ication to a
larrve nuiLber l1 lans:nen l h o ,a,' o h: .'n int ndi.:, to
at tcnd the :- ,'v(/oation. The a iclc-e: wCe'- 'u, mel. I a
b.ss o r the al.; l:'..ynus call su .e un tly m o tL
S,. aboo: en' in:d i ndiv .dua3s .
(3) anvrous telepDlc l e, to
i.ese.rvati:rs iceri at th: wa'd C_ hn. -. -" .. Courts
riotels, Sc i.-Iu' , N. C. a c res'. %-0i" : ;-d ..Ual
were cance 1 .C .These vre pr. il a .nn .
to the lonvok : fro il'adina -ad ..s
S i .: na; f of all'nd In v i : ; O m :i
tw:o to thir ._eo m per ro:". 1;± i i h i !d
in nl p .babili t were be Lc ln : .p .,,
.we bei]vo th is added to he ari r ;:va -;
Veortmenda ti r I .a f tr a.nS;.
The Char'lo: to "ii "i c re , n co; -a
,,f C ..- ... o in p.ossibl. cu ' ,'n i n n C11I. :
(1) Ir ref..',n' to .o :hic the
a r u ). (t il l.,.rj .,0,1- y t'
.he lt..... ., and lhe id'ntit, of he" 4 i: ' nw.n
I-)Icar with ::e GU.r;ose of vin e r:::: i
Ede ri-n the u:::cu d r.
t, .: [1 " lll *? i.*' / ) ! : '(!, " [: Z ' ..' :' .3L
SCI157-2V1
Ha been ,,.ome dis onsion in the past aIiong k:lansmien to
in eate that the lottery may have ibeen fixed", and it isfelt that additional questioning or bringing the matter backinto the klansmun's discussions would have a disructive
effect from a financial support standpoint at this timte.
(2) At the recent National Plonvolkatjion in
. Salisbury, a .'.solution was passed which will assess each
.Olavern 200 and is to be placed in the N'ational Defense Fund
in an ef ort L o build this fund up to ,250,,000.
in this connection, it is rccor:rienced that Ch arlottebe authorized to arrange .for \ide d.stribution throughou tNort!h Ccrejlinn a copy n! Y "e:: ' :s ., t- - l t.
A hi' *'> I I..tI.L a .: oxtng pac 32,io and whother he was actually
f : pr aid or whether this wa: a raudulent scVere bv the Naijonal
and Nort1h Caroillina stat , :lan o.: a
$ie'. A copy of this art icl i . l "r the , u co.
and iI is felt that this -i.e di ' .: :oiout ''e El..
12 maa t"' her serve to dis,.ou;-:ge C n ,t_ i .O to the N. ,t.on l
Dei. e u. d.
'he Bureau is i Cquested to conSidcr" the above
recoramil;.tations, and Char 'oLte will lee thce Iureaut advised
reg a;'in any additiona l opportun ities io 0. countein tl. i enc..C
actirn. 'ha:'ot t wil ta-e no conou, uce. -' , aci:.
wi ut pior urea.: approval.
1.[.- -- - :-I. _ .. , • ......"... .... ....,.... .... .. -. -7
I .,- .
|9
3n m n 12 .Ne.. o s.....
1/
RALEIGH IM- The North rinec-memer curt in its three- In the other Hyde County sentence in superior court uponCarolina Court of.Appeals has yeS. c case, the 12 ycuths were olig- trial de nove (new trial) than re!used because of late filing i: " e rti re used to consider inaflv tried in tate District was imposed in district court is
consider the appeal of three e ,r :i of the admitted Court, where t ,y all received constitutirny permissablemembers of the United IKlans KIi': m:,l< because it said the susnpnded four month se:-> The 12 arc Larry ?lidett,of nAmerica convicted of incit- ase r c .i was filed 12 days te.ces and $100 fines. B 3rad;; J hs r S .Do rie i -ing to riot. ... r ' pe .y un, .-in Ces. rIn other case. also from -i T :; :e n--L. E. Daup- " de iont, :ln Co:i ..o-,
Hyde County in the eastern tey, Jesse Matthews and erier Court, esa nn. ct o s, Van Gibts. Henr johnpart of the state but unrelated, .James Scott-were convicteduced and were sn:enced to 12 sonb SaniB.m r n, Felton
the court refused to overturn inciting to riot and provokig months in pris. G Van Gbbs Henry John-the oentenccs of 12 y Coward and Benjamin Phelps the sentences of 12 young breach of the peace during a Attornevs appealed on .he They ere convicted of cnt;r-
Negroes convicted of disrupting K!an rally July 4, 1969, near ground that it was uncanstitu, ing the predominantly Negro O.a county school during racial th Hyde County commun ty of tionai for the 32 to receive a A. Pony School near Swandisturbances in 1958. Middletown. All three received more severe e sc::tnce in a Quarter on Dec. 5, 1853, ofT lE DECISIONS were suspended, sentences. second trial than in :he first. ocking he cp r-har.dd4 down yesterday :long Evidence at the trial showed Stary out of her office andwitr 62 others in what a -ourt that part of the Klan rally SPeAc dIroinc school property. v yesternv.As.o. vt Julre ci roine schol propert.spokesman describe d as the included the playing over a Cu n:Thel . The rcuths ere pr a lar;es group of opinions b," the loud-speaker system of records anrod d a-
containing songs and jokes sitnled 1:w i in pl aprhicho ud desehagve-
-, in sutng to the blalk race. T e th t mp :ttc:1:: 0 oC. '
nsultintoth. closed the Peav School and an-S I -Distr' recordings could be heard fo ether black school in the county
more than a mile, and.Negros ~ . and transferred all students to/ converged on the rally site. I eN i S mostly white .tamuskettTalking , er Shol.
A unfight broke out in which Going. T t rs a legro girl was shot in theMall leg ard two highway patrolmen RID V.i. O ic c AM•Wa3 c "
RALEIGH fficis of were slightly wounded. Unionized m --AIR FU. c RALEIGH Offic731s of Unionized frem -
f l t. of H ealth, signed D "
/ 4At "-*
\/j/ltI- u- " '.- ' ."/r/
I-- i t/ - < 9"-". .... .. ..
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SACS Charlette (1.57-281) 7/15/70
Dir , (157-9- 1 -Mr. J. G. Deegan
COUTERIHTELLIGENCE PDGRN
IS -DISRUPTION OF HATE GtrUPS
(UIITED KLANlS OF AMERICA, INC.,
KNICGHTS OF nT7 KU KLUX KIAJ)
CH !JLTTE DIVIS LO
Reurlet dated 6/30/70.
on connection with your positi ve rcoenc-ationsr mnde
in relet your attention is directed to Bureu letter dated
9/2/64 ccationed "Co-nterintelligence, Internal Security,
Disruption of Hate Groups."
The above Bureau letter set forth the re-uire zrt
that quarterly letters concernin; the C ; -rntel ig.nce
l:rogram be submitted and also sUati-d tl t recor.n:ations
for counterintelligence action should not: l clnded in
these quarterly letters.
Accordingly, the reco .endatic t fo-rth in your
-. -letter of 6/30/70 should be resulmitted :'I -i" ai~i :nl
deti-ls.
.". ~ The details should includd the to lo:in :
1. Informazion in your: filcs:i as to -hethe internal
evevue Service w 'as ever ftrnishe, irforn*to- nceni n the
.lottery conducted by the Unite. I .: ericr .
" - 2. Information in you- file r s tc -7ther
s v ..ver included in his incone trx -,r -fact t~ t he
-on the lottery conducted by the Kl n -
3. Specific details as to ho- s lzst:ns r rning
-the lottery among klansmen w:ould bri,g a o: ,U 1trupti# -f---
--. -from a financil- support standpoint 't it.- .
7 7 7 . .J , : .r -.. 9
- 0 -- --~:
Letter to SAC, Charlotte
RE: COUNTERINTELLIGENCE PFGRAM
15 9-8
Tha above information should be submitted under
a separate counterintelligence caption and for your future
guidance all counterintelligence proposals should be submitted
under separate caption.
NOTE:
Charlotte Division in connection with their
quarterly progress letter submitted specific counterintelligence
proposals. In order to handle these proposals additional details
are required.
-2
-i-.
OPliONAL FOtM NO. 19
UNITED STATES GO\ ViNMIENT
Memorandum
TO DI TOR, FBI (157-9-8) DATE 7/29/70
FROM AC, GH41ARLOTTE (157-281) (P)
SUBJEC fCOUNTERINTELLIGENCE PROGRAMl
IS -IDISRUPTION OF HATE GROUPS
i ED KLANS._OF AEIRICA, .INC.,
S..NIGiTS OF TE R U KLUX KLAN) ) S nCHARLOTTE DIVISON
Re Charlotte letter to Bureau, 6/30/70, and
Bureau letter to Charlotte, 7/15/70.
Recommendation For Counterintelliqence Action
(1) At the time the automobile of Imperial Wizard
I ROBERT SHELTON was raffled off many klansmen expressed the
feeling that the raffle had been "fixed". This fclinc arose
,* .from the fact that the winner of th au or'1 1 U
During this time there
?ere also rumors prevalent among klansr.en concerning a
statement bI that he had "paid" $1,000 for the utomobile.
~ r Following this there were reports that U had
met with an attempt to resolve the fact tlat had actually
'won" the automobile. Many of the klansmen were never
completely satisfied with the explanations furnished by
and other Klan officers concerning this particular raffle.
It is -recommended that consideration be given to
furnishing local IRS aqents information concerning-this
raffle, as welTas thie amount ornmoney allegedly received by
the Klan as a result of the raffle, which was reported at-the
*i recent National K'lonvokation.. IRS should also be furnished
the name of as the winner with IRS to ascertain whether
the "prize" was reported by on his income tax forms.
SBureau r(Pj1)
Charlotte C DE8
GCK.jho i AUG 3 1970
(4)
CE 17-281,
i It is believed that in the event it is shown that
. did not report the automobile as a "prize" his allegation
w- 1 probably be that he boughtthe automobile in his normal
course of business, inasmuch as
Should this occur it is felt that considerable dissension
could be created by publicizing through leaflets or other
means to the UKA membership generally that the raffle for
the Imperial W±zard's automobile was a fraud. This should
deter members from participating in future raffles and other
L fund raising activities put forward by the Klan.
IRS has never been furnished information concerning
the raffle of the Imperial Wizard'vs automobile, and it is not
known whethez ever included in his income tax return the
fact that .he won the automobile in the raffle.
It is felt that such actions, if successful, would
impair greatly future attempts by the 3Klan to raise money
through lotteries or.raffles.
(2) At the recent National Klonvokation in Salisbury,
a reolution was passed which will assess each Klavern $200
and is to be placed in the National Defense Fund in an effort
to build this fund up to $250,000.
SIn this connection, it is recozmended that Charlotte
be authorized to arrange for wide distribution throughout
i 'Coronts relate to
ARPTHU1NjANES as being paid $12,500 and whether he ;was actually
I paid or idether this was a fraudulent scheme by the National
and North Carolina state klan officers.
A copy of thi's article :was furnished the Bureau in
referenced Charlotte letter, and it is felt that this wide
distribution throughout the !lan may further serve to
discourage contributions to the rNational Defense Fund.
The Bureau is requested to consider the above
recommendations, and Charlotte will keep the Bureau advised
regarding any additional opportunities for counterintelligence
action. Charlotte will take no counterintelligence action
without-prior Bureau approval.
2.
7
-ra
-:: " Tr ----.. ..--- ----------- T}," "' 7.1
Sz4 Charlotte (157-281) 8-12-70
'dC-124 Dil tor, FBI (157-9-8)J 41 -Mr. J. V. Walsh
S- "Mr.. J. G. Deegan
$1 y COUTERINTS.LLIGZ CE PROGRcIM
_ DISRUPTION OF IHATE GROUPS
(UNITED KLANS OF AMERICA, INC.,
KIIGHTS OF TIE KU KLUX KLANJ,
CHARLOTTE DIV- IOW)
RACIAL MATT ERS
PR,.urlt dated 7-29-70.
.:-thority is granted for you to advise IRS
locally the infc-rmation concerning the ;l1an raffle
:i:t. referred to in referenced letter as ,well .s th e ount
of money allegedly received by the 1Zars as result of
the raffle. You are alsb authorized to .is the e
of to IP as the -";-:r t n raf.
-G In addition, you are adthori-d to arran.ge for
cditribution throughout North Car, lin a c o nc-s
ert cle and comm-fnts which have beene
-referred to in referenced letter. ::1r the dintr:.&.u•
* of the news article is done in su.h a tFay that it cannot
be traced to the Bureau. Keep Bureu .is tiV..nt
develonmcits.
JGD:bad 57-q/
(5).. () SEE NOTE PAGO. TR
; n -h.i,,,,,, . / , .
It .- . , .
RE A~ corC1 t, Iiri. 0
pIRPI: OF O
(UNI TD 1I? flIS YQ.3iLUX 'A
cIHA1TT ISiJ
1579-8
the ~a f fie
aads
reCO ds that the aS egll asth
\ i- lobert ShlrlCalt e c ten gl ade in this
e ~ ~ fo hiS~ loteth rieta cb t C Oo nVT J h
Char 0lhaiot
api ea t ~ ate toa o t or
tlo -18I
bee tha dc t nl' ~eto-hancia supPe. int
effec fro~ NattdiSOU s~ ~t~ Wsou th
at e r that8
be ieback into ottainia- KYup: t a i~ wS
a d i t ut f l i a t t e r e c e n f v n d S'I
th el e ed $ 0. r & e f l al
*.i n a t av3 and haa s '_: rl
in the ti ^":
":;l a e tht there ha s e n ; th a $ ? ofic a and lie L ath E
__that fr U ttioainl
al e ged that in avra d u e t h te na. t hi a n ti cl e 7
that this as St t Kl a ft h o l i he re ly get a o y
a adsacpit thi5 artce
$ 5 0 o r t h i s n eq s P a P d sen s -\ i t l f h c
3 to bring about furte
-2
f mS- --
OPrONAL FORM NO. 0
MA 19612 EDIloN
OA F MR ( CFR) 101-11.6
UNITED STATES GOVL 'NIENT
"Memorandum ,
To : DI CTOR, FBI (157-9-8) DATE; 10/5/70 -
FROM C,CARLOTTE (157-281) (P)
SUBJECT: COUN. :TERINTELLIGENCE PROGRAM
IS -DISRUPTION OF HATE GROUPS
U Z ITED Kai.S OF A RICA, MIC., ,/.
IG IIGHTS OF '7- KU fiX. U KIAN)
CUArLOTTL DIVISIC-
Re Charlotte letters to Bureau dated 6/30/70, 7/29/70,
and 9/30/70.
QUARTERLY PROGRESS LTTR
Set forth below is current inisrmration concerning
the counterintclligcnce program beinci directed towards the
captioned organization: i
National Klonvokation of UIK-,
Salisbury, N. C., 6/27-28/70
nefcrenced communication of July 29, 1970, requested
that Bureau authority to furnish local IRS Office with
information concerning t he rafflc in :hich the auorbie
or Irpcrial wizard SMILTON was won by
t fDE-2 8rEC-i 2- X-
Bureau letter to Charlotte dated 8/12/70 granted
b authority for furnishing such information to IRS ana this
wac done ..' ,ii- detailed information to..
IRS, Charlottc, N. C.
inItaed that his office would recuest the
Sprtinent ta:; returns o and ascertain: hether
refleted his winning the automobile on his tax return. Once.
it is ascertained whecther recorded this as a prize or
whcether he recorded it as an out-right purchase, it can ti: .n
-be determined what further counterintelligencc action to take
regarding the general Klan membership. _-
2 -Charlotte
GC: s.
Bu B . -, hi. *.
CE 157-281
_i 17 The Bureau also authorized for additional distrioution
.vl thro u"hout North Carolina a copy of a news article
-1ieating to the payment or
$12,500 to ARTHIUi2 A ES, indicatinri that this may have been
Sfraudulent scheme v Klan otficers.
additional mailings of this
article have beco made to various Exalted Cyclops and Units
S1P in the UKl, and informants have indicated that this has caused
a !- additional ill feeling particularly in rcegard to money r:rstters
amonc UI'\ Klansr len.
It is felt advisable to stress t-he continual dcrmand
for m'oney in UimKA in North Carolina, and Charlotto will continu
to make reco:mmendations in this rcgarc as op;potunities arise.
It is fe.t that the additional mailins 'L out above nave
;been Droduttiv from: tie tandpoint o n.aa in irritatin t..2
-. mcrbe: rship on a point wherc many at them .rc lready dissatisfied1.
LTpon receipt of additional inforimation Crom IRS in regard to
-:.; o«Ther "matt er, CharL otte will mai:e fur thcr rcom.en'iations
s' 'in that time.
By srparate cor.rmunication, C:arlottc has requcatca
the Bureau's consideration a-.u approval ii; furnishing
in;:tormaation to frLiendly preOss contact rc;ardirn" the "500 Clumi."
The op ruticn of this .was set out in Clharotte's letter 1 t tu
' t. .Bureau, 9/30/70, ana it is felt that publicity from such an
article in the manncr set out in the com.uiat 'n will have
a tendency to reduce the ffecctivencss of :ndeavors
in this regard.
Charlotte Fwill take no furth-,r counterintelligence
recommcendations as opportunitics arise.
2
i " --; --'
FD-36 :ev. 5-22-64)
;FB I( Date: 9-30-70 i
Transmit the f owing in(Type in plaintexi or code) I "
.AirtaiVia Via (I'riority)
To: Director, FBI (157-9-8)
,From:' A Charlotte (157-281) (P)
\Subject: dbOUNTERINTELLIGENCE .PROGPRA'
IS -DISRUPTION OF IIATE GROUPS
; (UNITED :KLAtS OF AMERICA, INC.,
KNIGHTS OF TIHE PU YLU L KLAN)
SCIlIAPLOTTE DIVISION- -
Re CE let to Bureau 6-30-70.
.--The Bureau is requested to consider the following
counterinteliefnce recommendations of the Charlotte Division:
t .. 500 CLUB. 6b
During the National Klonvo:ation a: -' 1-'" orth
Carolina, in June 1970, North Carolina E S
and Imperial Wizard SHELTON elaborated to sc'me of the :ers
concerning a "500 Club".
This Club was to provide the rembership with protection
during periods of racial violence. As explained to some of the
. lmetr:bers at a rmeeting following t:e forn:i M.,lvckaio n,-rc
would be asked to join the "500 Club" by r akina payments to te
UIA. It :,as believed the ma-:aentc were at E500 ner cear, and
* the mercna nt would receive a me.rs l car an te :'
offer of :r:otcction for his n:, u: cri a period of racial
.strife in the merchant's coL:v :Anity.
R:ecently in Charlotte, North Carolina, the residence
of a Negro family who had moved into a predonminately white
neiaohnoaio;d was shot into and thereafter several self-appointed
protectors went to the residence to stand guard.
DE-28 5
Burea-u (^:!) f' , s, . '
-2 .Charlotte (
G CiZ:lp ~ OCT I t-SGCK:1
Approved: Sent -}' Pert-
SSpecial Aaer.t in Charge N .9; "
oa.. .: .(
CE 157-281
-."" t n a --r V ' 1 ' " --:- , ! -
The incident in .rlr. ncivcd nubli. t
th local ress an
_ o is a friendly press contact of
the aro cce, jontemplates writin a feature article
v concerning protection by non-police and by hired guards.
Iias received some inforration concerning the
"500 Club" from his sources and desires to supplement it with
information available in other areas of the state to show, whether
or not this is becoming a state-wide problem.
SI has previously been furnished information concerning
* -the Klan and has written numerous articles from information which
S has been furnished to him followina Charlotte receivin T:E:ureau
-" n, approval.
Charlotte believes that additjo .l information concernine
the "500 Club" should be furnished tol or inclusion in his
article as it is felt that his raising tne issue in the article
concerning legal liabilities and the possible criminal liabilities
" which might attach _self-appointed protectors will have a
deterrent effect on I expansion of the "500 Club".
If the Bureau ap^roves the furnishing of vuch information,
it will be furnished to ntC , as in the past, the
articles will be written sc as to provide complete security of
the Bureau's nosition.
No further counterintelligence action will be taken
Swithout the Bureau's approval.
x .
~
10/7/70
Ai el
1 -Mr. J. V. Walsh
To: SAC, Charlotte (157-281) 1 -Mr. J. G. Deegan
From: -Director, FBI (157-9-8)1/69
CO0NTERINTELLIGENCE' PIOGR&1
' DISRUPTION OF !ATE GROUPS
(UrITED iILANS OF t2"RICA, INC.,
KNIGHTiS OF T'E R U KLUX KLIAN)
CHAI LOTTE DIVISION
iACIAL MiATTERS
Reurairtel dated 9/30/70.
It. is not clear in reairtel what connection
the "500 Club" has with the incident in relet concerning
the shooting into the residence of a iegro f0n ily who movcd
into a predominantly white neighborhood.
In addition, prior to edvising conernFin your
recomnendazion made in reairtel you must spezifielly
set cut additional information you wiSh tc furrih-
Upon receipt of the above, you wil be aavisre
concerning your reconmendation.
JGD:rnm (5) '
/Cha tt _t e-' t2t
furnished information concernin,,n' the '500 Club." This is a
"" Klan group formed by Imperial Wizard Robert M. Shelton to
--- -provide the membership with protection curing period of raciei..
violence. It is believed payments are at $500 per year and f .
., NOT: OMTlTINUED PA7E T '
.... 0- CT74 9 "' ,., n .; nr rfl .A T .F Ti 'PE UNIT ... ..
Airtel to SAC, Charlotte
RE* COUNTERINTELLIGENCE PROGRk
DISRUPTION OF HATE GROUPS
15 9-8)
NOTE 0ONTINUED:
any merchant that paid the $500 receives a mombership card
and the UKA's offer of protection for his business during
the period of racial strife.
'4 .
9. _
1 2 -
.D.- Rev. 5-22-6~1)
F BI
'Date: 10/9/70
Transmit the ilowing. in _od,,_ __ _ ___
(Type in'plaintexi or code)
Via AIR'Er ( -.
(Priority)
------------------- ---
TO: DIRECTOR, FBI (157-9-8)
S FROMi: SC, CHlRLOTTE (157-281)
CbOUNTERINTELLIGENCE! PROGRAM1DISrUPTION OF HATE GROUPS
"JTED. K1 lS..Q..F AMERIC.), INC.,.g
SNIGHTS OF THE.KU KLUX KLAN)
"CHARLOTTE DIVISION
RACIAL MATTERS
Re Charlotte airtel to Bureau 9/30/70 and Bureau airtel
to Charlotte 10/7/70.
Referenced Bureau airtel requested information as to
possible connection between the "500 Club" and the incident in
referenced Charlotte airtel regarding the shieooting into a resi-
4:'. dence of a Negro family who had moved into a predo:::inantly .-hite
neighborhood.
(" I There is no connection between the "500 Club" and the C
incident involving the shooting into the .. .=-; 1e c .The
article which is under consideration by is to toint
S up possibl le legal ramifications comring i 1 : i:. i ic
v olunteer guards" are used in any given situatio
wishes to point out in his article that followisg the .s.t -i
Sinto the Negro residence, approximately t-.elve to fifteen I
and shotguns to "protect" the Negro family from any further
attacks on their residence. These "guards" were not specifically
requested by the Negro family, but once they appeared on the
scone they rumaiined for several days with tihe acquiescence of the
gro family. Ts ation created considerable tension in ithe
neighborhood and in his article, hlopes to show tha
"amateur guards" can lead to more serious complications than if
2'-Burreau / /-f -
'2-Charlotte 6.. 7
GCK:jcb ,i
(4) hA-/v
Ap -roved: .Sent
SSp ial .ient ; Char e
Fr-36 (Rev. 5-22-61)
F BI
."Date:
Transmit the ing in
(T)pc in plainlcxt or code)
Via(Priority)
------------------------------------------- ----~_--
CE 157-281
14 the situatinv were allowed to be handled by legitimate law
enforcement ag..cCs.
In using the above incident, he will then use
1an sl t ln, thiS bheirh t. "5 ,. 0 b Cl -.'ic,________C__________ to develo.
0 iuo"also p:ovides. So " q -t a lls "amateur
guards" who would take over the protect:ion o vo;ious businesscs
where the owner of the business htd joined the "500 Club". The
"protection" would come in times of racinl disturbances or riots
and would involve Klansmen being c::ll1ed to the place of
business to protect it from destruction.
In his article, l::nts to paint out these two
instances of "armateur guard a ing over what should be handled
by legitimate local law enforcement otfice.s.
The information which Charlott e desires to f-rish
fis the identity of several known Klansme whoti as
used as "salesmen" in making contacts with various n erchants
seeking out their membership in the "500 Club". lWith this
: informatioh,( should be able to develop the identities.of
some of the. merchants who are menmbe rs cf the "50') Clu'b" t:
obtain additional background for his article. As indicated
oreviously, 1ready has Som conce thisn
.operation by but is in nee6 of the identities of specific
ndividuals who, he can contact for more detailed informatio.
It is felt l~ t the identities of these individuals can be
given to :ithout ndangerin; intfor:nts and as
handled previous information furnis:hed 3n i mist circumspect
and discreet manner.
The Bureau is requested to cons.idor lori s'h
this inform:ation and upon receipt of Bu,'au :iprval C ,1ott
will do so.
' Charlotte will t-ake no further counteri.itellig-nce
action without prior Bureau approval.
2
.Approved Sent -_erIi: :Spec i:1 Aqen' ::. Chaore,. .
ROUTE IN- E7ETLOPi; 17ELOPL
10-15-70 s.
1 -Mr. J. V. Walsh
1 -Mr. J. G. Deegan
To: SACs, Charlotte (157-281)
Birminaham
S -From Prector, BI (157-9-8) /
COUi'TfERINTZLLIG C- E PROGRAMI
DISRUPTION OF HATE GROUPS
(UNITED KLa NS OF AMERICA, INC.,
KNIGHTS OF THE KU KLUX KLAtT)
CHARLOTTE DIVISION
RACIAL MATTERS
Ro* I'CEairtel dated 10-9-70.
Authority \s r 1 3 : the Chrlott- ,Dision to
S furnish to\ d "the identities of several hcii i. ansmen
9 whom has used as "salesmen" in making contacts
with various merchants seeking their membership in the "500
Club."
Prior to furnishing this inforimation tom
you should insure that he clearly understands the Fbi is not
to be identified in any way with furnishing this lead
information to him.
Keep Bureau advi;ad of all pertinent develooe: ts.
For the information of Birmingham Division, t'.e
------- Charlotte Division reco!-:rnded that tlhe above information be
:..nm. .-- JGD:bad ,(7)
..-.. MA•LED 4 /
.-.-, .. SEE NOTE PAGE It. .i
-CO-MM-FB I .
4 b:.w CirAO7O-T LT.EYT~g hNTTFTL.
Airtel to SAC, Charlotte
RE: COUNITERINTELLIGENCE PROGRAMT
DISRUPTION OF IHATE GROUPS
(UNITED KLITS OF AiMERICA, INC.,
KNIGHTS OF THE KIU KLUX KIA) ..
CHARLOTTE DIVISION
157-9--8
furnished to i n ho intends to publish an article
concerning the "500 Club." He intends to point out that
"amateur gcuards" can lead to more serious conplications
than if the -2cuation was allowed to be handled by legitimate
aw enforce:ment agencies.
NOTE:
" The "500 Club" is j Klan oDeration wherein merchants
b~" 3re solicited to pay $500 which will guarantee them "voniunteer
guards" for their business in any given situation especially
in case of racial violence. Chnrlotte advised thtt
cnn be furnished the information set out above without
endangering informants and thti n ::- handle d nrev ous
information furnished him in a- nwt circumspect and di'creet
i 1manner. i.iles contain no derogtory i.nf r.tion
concerin2-
FQ-a, (- n. 5-22.64) I
F BI
Date: 10/27/70
IA
Transmit the lo1 ingin '
(T)pe in plaintexl or code)
.i AIP.EL
(Priority)
.------------------------------------------------------------------------------ _- ---
- TO: DIRECTOR, FBI (157-9-8)
FROM: C, CHARLOTTE (157-281) (P)
SUBJECT: iCOU1TfE.INTELLIGENCE PROGRAM
DISRUPTrION OF HATE 'GROUPS
, IITE. KLA-S OF £1. 'ICA, IIC.,
-IGItTS OF..TE .(U.JKLUX. KLAN)
1,TIONAL KLONVOOATION,11/26-29/70, "
TUSCALOOSA, AJLABAMA.
R'I -KLAN
Re Birmingham airtel to Bureau dated 5/13/70.
Referenced Birmingha!x cotu ilunictio. 7.l l C .ic.t
counterintelligence u ! --stio freot re. ci ien t -llices r. use i
durin;,. thie at onal Kl.onvocatio;. n of U: to be held in Tusc^loosn..
S,- Alabama, 11/26-29/70.
The Charlotte Division makes the folo counter-
intellience su;gestions for corsideration by the Birmi,,,ham
Division for possible use during the National Klcnvocntion:
1. Durin5 the National. Ilonvoca tion of te ', a
in Salisbury, N. C., on (/27-2./70, a inancia' r :eport for tie
fiscal year 1968-1969 was furnished to those in nttenance .
The National Office reported a total incone of orver so+,e llO,00
but there was no detailed or itemizat'on of the c::penses coverin
the ex:penditures of this $100,000.
Charlotte informants in atttendance at thi:s %lonvocatio
stated there were soreo remarks reflecting disst risfaction amron:
somre of the members that the National Office i:d' not given a
more itemized or detailed accounting o: where t;his .,100,(00
had been spent. P DE-28 / i
-Bureau (RMi) - RE5 - . o
2 -Birmingham (157-835) (RM)
2 -Charlotte
(6)-_____l_'d: Sent ____... er
C) " cv- ' 'cl-' A.20o," i :: .h .-O->02
f iFr'-3 o vFe*. 5-22-641
F BI
Date:
Transmit the 1wing in(Type in plaintext or code)
-:1 VioV (Priority)
CE 157-2S1 ..............
It may be that informants attending the klonvocation
at Tuscaloosa in November, 1970, could cause some additional
dissatisfact'on and possibly delays or disruption of the activites
by demanding a mlnre detailed accounting of expenditures for the
-fiscal year 1969-1970.
S2. It has al,;o been renorted that during tle knvoza iO
in Salisbury, N. C., it
a "hand-picked" caldidate or
of Virginia -o in : ' n usman
nominatedor t
same nosition. o11owing this noliliaion, it is leported that
mi lew into a rage and told the klansmsn who had nominated
that he did not have any business nominating a second
party for this position. This ircident furnished some members
\ attendin the ]ilonvocation in S win an nleo demonstaton
of 1ictatorial operation cdnceriing the klan.
It is felt that sonme considiuatio could be given to
instructing informants attending the klonvocation to be alert
for this type of situation and to possibly bring up the fact
that candidates for the Imperial Board ware "hand-picked" at the
klonvocation in Salisbury and should be rem oved from oafice and
a new election held so as to give the r.cibershin a freeiom of
choice in selecting candidates for thc&-c, positionS.
At the klonvocation in Sanlsbury,
had the Saturday evening ba .a id
:1 enar, cc person in attenldance S5 for the dinner, however,
information was subsequently received til:ht the cnterer fuinisheI
the meal for approximately $;2.50, which left th approxi-
mately a S;2 profit for each plate which vwas.
If a similar situption exists in the klonvocation in
. Tuscaloosa, informants could be. alerted to this situation and
make a demand that each mo;aber attending the bianciut should be
assessed only the exact amount which tie caterer is going to
charge for the meal rather than having an excessive price chargem.
and having the profit go to the Imperial Wizard or Grand Dragon I
of the organization.-2-
Approved: Sent _ Per
. So-cial Ament in Char .,z3
PQ-36 ( ev. 5-22-64)
F BI
Date:
Transmit the Ilowing in
(Type in plaintext or code)
Via
(Priority)
CE 157-281
4. Coming out of the hlonvocation at Salisbury, N. C.
was a plan in which 'ias made some
l- attempt to i...,lement w Ll inoitii Caio .1%. concerns the
"500 Club" which is basically a protection-type racket in which
: -attempts to secure from individual merchants a commitment
to pay from $100 per year up to S500 per year as protection for
their businesses during times of riots or racial strife. Tie
plan is to operate in such fashion that when the merchant has
his place of business threatcned by Neroes or any other faction
during a riot, if he is a memlber of the 500 Club he can call upo
the local klansmen to come to his place of business and afford
protection.
:m a Should the opportunity arise at the klonvocation of
UKM at Tuscaloosa, Birmingham may wish to instruct informants
attending the klonvocation to bring up pertinent questions con-
cerning vhlat the klan's liability mighti: be to a family whose
husband or father went off on a protective assignment to one of
the merchants' establishment during a tiirie of race riotinr and
was subsequently killed. This could be ex:panded into the
possibility of the klan providing prd-up insuirace policies for
all members of the klan-who are expected to be assigned to take
part in these protective activities; it could be approached
from the legal liability of the 1:lan to provide for the welfare
of the wife and children of klansmen who might be kil ,i aff rdi :
suiclh protectionn. and the possible legal liability of the Imperial
Wizard personally and the state Grand Dragons personally in
these situations could be discussed with a view to pointing up
the serious liabilities involved and perhapn an indication that
the 500 Club operation should be discontinued throughout thie
klan organization.
5. Some consideatior could also be given to the fact
thatIQELTON and the National Office in extending invitations
to klanismiefi-to participate in the Second Degree of Klancraft
for which candidates to the second degree are to be charged $25
initiation fees, stand to amass a small personal fortune from
these payments. This could be utilized as another example of
where "patriotism has a price" v.hich has been used to varying
degrees of success throughout North Carolina bv continually
-3-
A ,roved: Sent _ ___ i er
i .,' Special Aqent in Chcre
FD-;b (Hev. 5-22-54)
F BI
Date: "
Transmit the llowing in
(T)ype in plai r.ext or code)
S Vi (Priority)
_--CE 5 ------------------- ------------------- --
prodding individual klansmen with this phrase, pointing out that
the klan hierarchy is placing the dollar sign on patriotism in
all aspects cX-Klancraft. Demands could be made for an accountin
as to what the $2b from each-member going into the Second Degree
*of Klancraft could be used for and possibl.y even question the
necessity for any initiation fee whatsoeuver in these o ..: n .l
The above suggestions are .furnished Lo the Bureau and
Birmingham for whatever possible use Ei imingham may be able to
make of them in connection with the klonvocation to be held in
Tuscaloosa.
No counterintelligence action should be taken without
prior Bureau approval and Birmingham is requested to advise
Charlotte should any of these suggestions be implemented so that
informants of the Charlotte Division who may attend the klonvocation
can be properly instructed in accordance w:iii Birmingham's desired.
-4-
"........... Sent _ _ _ I Per. Sr- int A len , C, r.C.
Fd-36 (Rev. 5-22-E-
F BI
Date: 11/17/70
Transmit the owing in
(Type in plaintexz or code)
Via T
(Priority)
--- -- -- --- -- -- ------------------------ -L -
TO: -DIRECTOB, FBI (157-9-8)
-RoK: IC, CHARLOTT (157-221) (2)
UJJ.CT: CO....lPRO -KLt
RCCIL .-a TTERS
e 1 ltt irtei to Te a" 0, 7/70
Bi... ::.i. ai Itel to Bu'reau 'at lii/l 70, an u -Bu.- 01 .i
.to B;minham an Ch otto dt 11/1,'
7 5,rn cc ,t -catd Cc i0/2"/0, cet for .eco.m e'
i :or possibl cuoitiliDe n tio bL 3thBirming;v-
i -n ui. the io:ational 1(. o in for
a ut ority f or i,,p le,.e- 3 , he io11, L, 1n t -.i
C le uSC Te O A"
-,I 1.C 1 2. io m
Itn ::- ,, iet t r _-- 'l t, .c i
2 --ha2-
Approved: . Sent M Per r." r eal A-:ent in'Ch rue6-7
i' F iF -? flP i 1~o : A :-tn~Chnre __________
PD-36 (Rev. 5-22-54
F BI
Date:
Transmit the lowing in
(Type in plaintext or code)
ViaVia (Priority)
------------------------------------------------ -------- -
CE 157-281
It may, be tha"t t calient iointi in the
-reco:ncnations m fnct possibly oe n a lafle t
forn. and distribouted .anon-mousl to t 2clmbr I I'.
t he 1lonv-t io-n -- p o--------------------------------i" 0 leae
to oithe' selected officers. and nember follo- in h lon-okati-.
Charlotte w;ill remain ltc fo t-o oltn' i tLU es
to utili:':e me, recomende .c -.t n a d .C _. ..o o
.Approved: Sent - .M Per
Special A-entiir Charap S.p l Aa.en.. .in C .r ..... 7
ii
-OPTIONAL PONM NO. to
G .A rpPMR C41 C ) 10-I'11(MAY IH± £OIV ON .
UNITED STATES G \ UNMENT
Memorandum
T LO : DIRECTOR, FBI (157-9-8) DATE: 12/29/70
FROM:FROC, CHARLOTTE (157-281) (P)
S SUBJECT: COUNTERINTELLIGENCE PROGRAM
:: IS -DISRUPTION OF HATE GROUPS
'(UNITED KLANS..OF AMSRICA, INC.,
mI- "- KNITiGHTS OF ThE KU KLUX KLAN) ' '
CHARLOT'1 DIVISION
Re Charlotte letters to Bureau dated 10/5/70,
10/9/70, 10/27/70.
QUARTERLY PROGRESS LETTER
, Set forth below is current information concerning
' the counterintelligence program being directed towards the
captioned organization:
Charlotte's Quarterly Progress Letter of 10/5/70
set forth information concerning the furnishing to local IRS
office with information concerning the raffle in which the
auorbi Le of ~1erial Wizard SHLTON was won by
The Bureau granted authority for furnishing the
b-"information which was previously set forth to IRS and t".'- a.
done d bfurnishing detailed information to
111 ig IRS, Charlotte, N. C.
:l has previously indicated that his office would
request the pertinent tax returns of f and ascertain whether
reflected his winning the automobile on his tax return.
To date, has not been able to conduct the necessary analysis
and has run into some delays in obtaining return from
Chamblee, Ga. Charlotte is following this matter wit
and will make appropriate recommendations for further
counterintelligence action in regard to this recommendation
afte OM has conducted the analysis to determine whether in
recorded the automobile as a prize or outjright purchase.
-IBureau (RM) ECE.35998 ~:' ty2 -Charlotte n, EX-113 , .-yr .- .'
.I , -- I -- -. .,..
C -7-281
Charlotte has previously received authorization for
additional distributi throughout North Carolina of a news
article relating to
the payment to ARTHUpAYNES of $12,500 in attorney's fees and
in which he indicated that he believed that this was a fraudulent
scheme by klan officers to secure additional funds.
leaflets are the subject of conversation at klavern meetings
and continues to create some ill will among the membership when
these leaflets are read in open meetings.
Charlotte has previously received Bureau authorization
to furnish information to
'P which
as been attempting to put into opera3-t.on.
has been furnished information which has been authorized by
the Bureau and will prepare an article utilizing this information
along with other information which he has develored through
independent interviews, which he has conducted. ,has been
! most circumspect in his use of information as furnished in the
past and it is felt he will continue to utilize such information
to the complete protection of the Bureau as the source.
has not as yet prepared the article due to having
been given other assignments by the editor, which have of
necessity required a great deal of his.time. He has indicated
he still intends to do such an article and will not come until
probably shortly after the first of the year.
° Charlotte will, by separate communication, make
appropriate recommendations for counterintelligence action
as the opportunities arise and will takec no counterintelligence
action without prior Bureau approval.
-2-
OPTIONAL FORM NO. tO0
UNITED STATES C .4AM-ENT
/ Memorandum
TO DIRECTOR, FBI (157-9-8) DATE: 2/26/71
SAC, CHARLO TTE.(157-281)
SUBJECT: COUNTERINTELLIGENCE PROGRAM
DISRUPTION OF HATE GROUPS
(UNITED KLANS'OF AMERICA, INC.,
KNIGHTS OF THE KU KLUX KLAN,
CH:. 'LOTTE DIVISION)
RACIAL MATTERS
Re Bulet to Charlotte, 8/12/70 and Charlotte letter
to Bureau, 10/5/70.
Referenced Bureau letter granted authority for
Charlotte to advise IRS locally concerning inform"tion
regarding the klan raffle which resulted id
winning SHELTON's automobile.
The Bureau has reviousl been advise concerning
contacts with IRS,
Charlotte, North Carolina.
On 2/4/71, ldvised that he had now received
a report from the field auditor concerning this matter.
This investigation was delayed somewhat due to difficulty
in securing records from IRS, Atlanta.
2 -Bureau (RM) VE-28
2 -Charlotte
GCK:sjw
(4)
1971
4-- .P;:,i t. S. S, s'L *. J -4, RemutarLi' 9,! rt,: P.zirol .F:;'.' f Pt-.
... -- ". -- a .:_...-
CE 157-281
In view of the results of the IRS check it does
not hppear that this has any further counterintelligence
value and Charlotte is considering this phase closed.
Charlotte will remain alert for any other
counterintelligence opportunities that arise and make appropriate
recommendations.
2/
o.-rtNAL FDNM NO. 10
GSA FPMA (1 CFn) o10-11.6
UNITED STATES GO\ K..'NMENT
Memorandum
TO DIRECTOR, FBI (157-9-8) DATE: 41/71
SAC, CHARLOTTE (157-281)
SUBJECT: COUNTERINTELLIGENCE PROGRAM
-, DISRUPTION OF HATE GROUPS
.kNITED KLANS.OF AMERICA, INC.,
'-KNIGHTS OF THE KU KLUX KLAN, .
CH,...-LOTTE DIVISION)
RACIAL MATTERS
Re CElet to Bureau, 12/29/70.
QUARTERLY PROGRESS LETTER
Set forth below is current information concerning
the counterintelligence program being directcd towards the
captioned organization:
Referenced Charlotte letter set forth i nforma on
concerning the furnishing of local IRS office w.ith information
concerning the raffle in which the autonrO K U i Imnorin!
Wizard SHELTON was won by]
Carolina. The Bureau subsequent ly aul.hor ze6 Ch:arlotto co
.urnish pertinent information to IRS at Charlotte and this
-as done.
C'i of IRS,
:equested a fic au n to asccrtain ,hther
he had entered in his books the automobile as a cost ite.
"(2- Bureau (tM) ,OE-28
2 --Charlotte .
C CK:sjw * -"
'I 4 Ice r ei i.-5
..I'
. CE 157-281
_. Charlotte has previousl.y rocre'od Tb:reau au'oi to..
.i * aith t: h identities 01 scvelra. i ln tziansmfen whkom
has used as "salesmen" in making contacts with
various merchants seeking their membership in the "'500 Club".
This information has been furnished to
however, he :;' not had adequate time to carry througa wn he
.L nce:'snary interviews and investigation on which to base an article.
& is used as a "project writer" and does other free lance work
and has Leen unable to secure time from his editor to carry
V b through with this project. The Bureau will b. ndvi sd of any
developments accruing from such an article if is able to
prepare such an article.
Charlotte will rem-in alert for any other counter-
intelligence opportunities that arise and make appropriate
reconmmendations to the Bureau but will take no counterintelligence
action without prior Bureau approval.
:is
2
i *