Warren T. McCray
Encyclopedia
Warren Terry McCray was the 30th Governor
of the U.S. state of Indiana
from 1921 to 1924. He came into conflict with the growing influence of the Indiana Ku Klux Klan after vetoing legislation they supported. His personal estate was threatened with bankruptcy during his term and he solicited loans via the mail in order to help maintain his home and took a questionable loan from the state department of agriculture. The Indiana Attorney General
was a Klan member and used the opportunity to bring a suit against the governor for embezzlement, for which he was found not guilty. Immediately after the embezzlement case failed, a new case was launched in federal court claiming he had solicited private loans in a fraudulent way. He resigned from office following his conviction for mail fraud and served three years in federal prison
before being paroled in 1927 and pardon
ed by President
Herbert Hoover
in 1930.
, on February 4, 1865, to Greenberry Ward and Martha (Galey) McCray. His friends and family called him "Warnie", and he had two sisters, Annie Eliza and Fannie. At age five he moved to Kentland, Indiana
where he grew up attending local public school. His father and uncle formed a successful livery
business there. From an early age McCray was encouraged to find a way to make money, and began growing vegetables and selling them door to door as a young boy. As he grew older he began taking care of cattle of townspeople who did not have enough land for them to graze. For a fee he drove the cattle into a pasture outside of town during the day, and returned them in the evening.
In April 1874 his uncle died and his father took on new partners. They soon purchased the Discount and Deposit Bank of Kentland and began to accumulate considerable wealth. As a teenager, McCray took a job in the bank as a bookkeeper. After completing high school in 1882 his father offered to send him to college, but the young McCray choose to instead remain working at the bank. By 1885 he had grown tired of his banking job, and decided to go into business on his own. With a friend, Willis Kirkpatrick, he purchased a town grocery store which was immediately very profitable. He used his income from the store to invest in railroad and mining stock, but mostly to buy land. He also made a significant investment in grain elevators and became President of the National Grain Dealers Association.
McCray soon owned a large tract of quality farmland surrounding a large pond outside of Kentland which he named Orchard Lake. He married Ella Ade, the daughter of one of his father's business partners on June 15, 1892. The couple had four children, although one died as an infant. McCray became interested in breeding cattle and began building a herd of specialized breeds. His reputation in the cattle community grew rapidly and he established a show barn and auction house and began selling his quality bred cattle, quickly growing his fortune.
His activities gained him notice by the state party leaders who helped him to gain a seat on the state committee in the summer of 1896. He traveled to Washington D.C. in 1901 to attend the inauguration of President William McKinley
and came back convinced he should pursue politics. The same year we was appointed by Governor Winfield T. Durbin
as a trustee of the Northern Hospital for the Insane, serving as treasurer. He remained on the board for twelve years. In 1912 he was appointed to the State Board of Agriculture, and became President of the board in 1915. His success at implementing reforms as a board member helped his popularity in the state.
. McCray returned to his board duties which expanded as World War I
broke out. Goodrich appointed him Chairman of the Food Conservation Committee of Indiana and a member of the United States Live Stock Advisory Committee to help ensure adequate army supplies and rationing during the war. In 1922 he became Chairman of the Corn Belt Advisory Committee of the War Finance Corporation which sought government assistance for farmers. McCray was also very involved with the Red Cross and led several fund raising drives to help the organization.
In 1920 McCray considered running for governor in the Republican primary again, but decided against it and to instead support Will Hays in his run. Hays, however, announced he would not be running and instead backed McCray. In the primary he ran against five other candidates who attacked him primarily over his war record, as some Republicans were not supportive of the war effort, and for his business practices. The charges proved ineffective, and McCray won the primary defeating his closest competitor by over 50,000 votes.
McCray was opposed by Democratic congressman Carleton B. McCulloch. McCulloch was a war veteran and a doctor and the campaign focused largely on the progressive agenda. The election was highly contested and remains the election with highest voter turnout in state history, with most polling places having turnout near 95%. The election was a landslide for Republicans across the board, as they increased majorities in both houses of the Indiana General Assembly
.
McCray came to office and in his inaugural address he all but declared an end to the progressive era
, stating that people demanded "a season of government economy and a period of legislative inaction and rest." He and the Republican majority in the General Assembly began rolling back several key progressive era regulatory laws and attempted to cut back on government spending. McCray focused attention on what he considered the useful and necessary state institutions and undertook an expansion of the education system by building dozens of new schools, constructing the first new state prisons in several decades, enlarging state hospitals, and building a new state reformatory
for juvenile delinquents. McCray began laying out plans for a grander state highway system to better accommodate the automobiles which were becoming commonplace. Among the roads he approved creation of was the Lincoln Highway
. To fund the road projects, the state introduced its first gasoline tax.
The Klan gained even more influence in the government in the following year, and Edward Jackson granted the Klan a state charter and officially recognized their organization. McCray was angry with Jackson over the action, and demanded it be rescinded and threatened to take the measure to court, claiming that no organization could receive a charter unless its leaders would reveal themselves and sign the charter. Grand Dragon D.C. Stephenson ordered Jackson to offer McCray a bribe to change his mind. Jackson offered McCray US$10,000 if he would fill several public offices with Klan members. McCray, a millionaire, declined the bribe and was offended. The dealing was behind the scenes and not made public.
s and using them as collateral. Bank officials later claimed they were coerced by the governor who hinted that he would remove state deposits if they didn't grant him the loans.
Klan members soon found out about McCray's dealings and decided to use the situation to force him out of office. The Indiana Attorney General
brought McCray up on charges of embezzlement regarding the loan he took from the agricultural board. By then though, he had already repaid the loan to the board with the help of several friends. The case ended in a hung jury on April 11, 1924. On April 21, he was brought up on mail fraud charges after it was alleged he had mailed the fake promissory notes to several banks. During the trail he admitted his entire scheme, but declared he intended to repay all of the debts and had no criminal intentions. He was soon convicted and sentenced to serve ten years in prison. He resigned on April 30 and was promptly arrested. The same day, Lieutenant Governor
Emmett Forrest Branch
was sworn in as governor. A close friend of McCray, he cried while taking the oath of office, and later said that everything was so "sudden and surprising."
in Atlanta, Georgia
, he was paroled and returned home in 1927. While in prison, the Indiana Klan fell apart as their schemes were revealed by the Grand Dragon after he was convicted of rape and murder. McCray resumed his business which had recovered and repaid his loans. He remained reclusive in his home, even after being pardoned by President Herbert Hoover
in 1930 after Republican party leaders informed Hoover of the Klan's role in McCray's conviction. McCray remained on his farm where he died on December 19, 1938. He was buried in Fairlawn Cemetery in Kentland, Indiana.
Governor of Indiana
The Governor of Indiana is the chief executive of the state of Indiana. The governor is elected to a four-year term, and responsible for overseeing the day-to-day management of the functions of many agencies of the Indiana state government. The governor also shares power with other statewide...
of the U.S. state of Indiana
Indiana
Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...
from 1921 to 1924. He came into conflict with the growing influence of the Indiana Ku Klux Klan after vetoing legislation they supported. His personal estate was threatened with bankruptcy during his term and he solicited loans via the mail in order to help maintain his home and took a questionable loan from the state department of agriculture. The Indiana Attorney General
Indiana Attorney General
The Indiana Attorney General is the chief legal officer of the State of Indiana in the United States. Attorneys General are chosen by a statewide general election to serve for a four-year term...
was a Klan member and used the opportunity to bring a suit against the governor for embezzlement, for which he was found not guilty. Immediately after the embezzlement case failed, a new case was launched in federal court claiming he had solicited private loans in a fraudulent way. He resigned from office following his conviction for mail fraud and served three years in federal prison
Federal prison
Federal prisons are run by national governments in countries where subdivisions of the country also operate prisons.In the United States federal prisons are operated by the Federal Bureau of Prisons. In Canada the Correctional Service of Canada operates federal prisons. Prison sentences in these...
before being paroled in 1927 and pardon
Pardon
Clemency means the forgiveness of a crime or the cancellation of the penalty associated with it. It is a general concept that encompasses several related procedures: pardoning, commutation, remission and reprieves...
ed by President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
Herbert Hoover
Herbert Hoover
Herbert Clark Hoover was the 31st President of the United States . Hoover was originally a professional mining engineer and author. As the United States Secretary of Commerce in the 1920s under Presidents Warren Harding and Calvin Coolidge, he promoted partnerships between government and business...
in 1930.
Family and background
Warren Terry McCray was born near Brook, IndianaBrook, Indiana
Brook is a town located in Iroquois Township, Newton County, Indiana. As of the 2010 census, the town had a total population of 997.-Geography:Brook is located at 40°51'58" North, 87°21'57" West ....
, on February 4, 1865, to Greenberry Ward and Martha (Galey) McCray. His friends and family called him "Warnie", and he had two sisters, Annie Eliza and Fannie. At age five he moved to Kentland, Indiana
Kentland, Indiana
Kentland is a town in Jefferson Township, Newton County, Indiana, United States. The population was 1,748 at the 2010 census. The town was founded in 1860 as "Kent", though this name was soon lengthened to Kentland. The name honors Alexander Kent, who acquired the then marshy plat and prepared it...
where he grew up attending local public school. His father and uncle formed a successful livery
Livery
A livery is a uniform, insignia or symbol adorning, in a non-military context, a person, an object or a vehicle that denotes a relationship between the wearer of the livery and an individual or corporate body. Often, elements of the heraldry relating to the individual or corporate body feature in...
business there. From an early age McCray was encouraged to find a way to make money, and began growing vegetables and selling them door to door as a young boy. As he grew older he began taking care of cattle of townspeople who did not have enough land for them to graze. For a fee he drove the cattle into a pasture outside of town during the day, and returned them in the evening.
In April 1874 his uncle died and his father took on new partners. They soon purchased the Discount and Deposit Bank of Kentland and began to accumulate considerable wealth. As a teenager, McCray took a job in the bank as a bookkeeper. After completing high school in 1882 his father offered to send him to college, but the young McCray choose to instead remain working at the bank. By 1885 he had grown tired of his banking job, and decided to go into business on his own. With a friend, Willis Kirkpatrick, he purchased a town grocery store which was immediately very profitable. He used his income from the store to invest in railroad and mining stock, but mostly to buy land. He also made a significant investment in grain elevators and became President of the National Grain Dealers Association.
McCray soon owned a large tract of quality farmland surrounding a large pond outside of Kentland which he named Orchard Lake. He married Ella Ade, the daughter of one of his father's business partners on June 15, 1892. The couple had four children, although one died as an infant. McCray became interested in breeding cattle and began building a herd of specialized breeds. His reputation in the cattle community grew rapidly and he established a show barn and auction house and began selling his quality bred cattle, quickly growing his fortune.
Local politics
McCray became involved in local civics organizations and served on the country school board for one term in 1890. A devastating fire struck Kentland a few years later, and the county placed him in charge of overseeing several projects to rebuilding the town. He gained a reputation for getting things done quickly and cost effectively, and ran for a seat on the town council the following year. There he successfully advocated the modernization of the town by paving the roads, building an electric plant, installing street lighting, building safer railroad crossings, and several other projects. The tax increases needed to pay for the projects turned out to be too much, and he was voted out of office after one term.His activities gained him notice by the state party leaders who helped him to gain a seat on the state committee in the summer of 1896. He traveled to Washington D.C. in 1901 to attend the inauguration of President William McKinley
William McKinley
William McKinley, Jr. was the 25th President of the United States . He is best known for winning fiercely fought elections, while supporting the gold standard and high tariffs; he succeeded in forging a Republican coalition that for the most part dominated national politics until the 1930s...
and came back convinced he should pursue politics. The same year we was appointed by Governor Winfield T. Durbin
Winfield T. Durbin
Winfield Taylor Durbin was the 25th Governor of the U.S. state of Indiana from 1901 to 1905. His term focused on progressive legislation and suppression of white cap vigilante organizations operating in the southern part of the state...
as a trustee of the Northern Hospital for the Insane, serving as treasurer. He remained on the board for twelve years. In 1912 he was appointed to the State Board of Agriculture, and became President of the board in 1915. His success at implementing reforms as a board member helped his popularity in the state.
State politics
McCray decided to run for governor in the 1916 Republican primary, but was defeated by the well connected former state party chairman, James P. GoodrichJames P. Goodrich
James Putnam Goodrich, , a Republican, was the 29th Governor of Indiana from 1917 to 1921. His term focused on reforming the operations of the state government and overseeing the state's contributions for World War I. He nearly died twice during his term, and spent a considerable time bedridden...
. McCray returned to his board duties which expanded as World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
broke out. Goodrich appointed him Chairman of the Food Conservation Committee of Indiana and a member of the United States Live Stock Advisory Committee to help ensure adequate army supplies and rationing during the war. In 1922 he became Chairman of the Corn Belt Advisory Committee of the War Finance Corporation which sought government assistance for farmers. McCray was also very involved with the Red Cross and led several fund raising drives to help the organization.
In 1920 McCray considered running for governor in the Republican primary again, but decided against it and to instead support Will Hays in his run. Hays, however, announced he would not be running and instead backed McCray. In the primary he ran against five other candidates who attacked him primarily over his war record, as some Republicans were not supportive of the war effort, and for his business practices. The charges proved ineffective, and McCray won the primary defeating his closest competitor by over 50,000 votes.
Reforms
In the general electionGeneral election
In a parliamentary political system, a general election is an election in which all or most members of a given political body are chosen. The term is usually used to refer to elections held for a nation's primary legislative body, as distinguished from by-elections and local elections.The term...
McCray was opposed by Democratic congressman Carleton B. McCulloch. McCulloch was a war veteran and a doctor and the campaign focused largely on the progressive agenda. The election was highly contested and remains the election with highest voter turnout in state history, with most polling places having turnout near 95%. The election was a landslide for Republicans across the board, as they increased majorities in both houses of the Indiana General Assembly
Indiana General Assembly
The Indiana General Assembly is the state legislature, or legislative branch, of the state of Indiana. It is a bicameral legislature that consists of a lower house, the Indiana House of Representatives, and an upper house, the Indiana Senate...
.
McCray came to office and in his inaugural address he all but declared an end to the progressive era
Progressive Era
The Progressive Era in the United States was a period of social activism and political reform that flourished from the 1890s to the 1920s. One main goal of the Progressive movement was purification of government, as Progressives tried to eliminate corruption by exposing and undercutting political...
, stating that people demanded "a season of government economy and a period of legislative inaction and rest." He and the Republican majority in the General Assembly began rolling back several key progressive era regulatory laws and attempted to cut back on government spending. McCray focused attention on what he considered the useful and necessary state institutions and undertook an expansion of the education system by building dozens of new schools, constructing the first new state prisons in several decades, enlarging state hospitals, and building a new state reformatory
Reformatory
Reformatory is a term that has had varied meanings within the penal system, depending on the jurisdiction and the era. It may refer to a youth detention center, or an adult correctional facility. The term is still in popular use for adult facilities throughout the United States, although most...
for juvenile delinquents. McCray began laying out plans for a grander state highway system to better accommodate the automobiles which were becoming commonplace. Among the roads he approved creation of was the Lincoln Highway
Lincoln Highway
The Lincoln Highway was the first road across the United States of America.Conceived and promoted by entrepreneur Carl G. Fisher, the Lincoln Highway spanned coast-to-coast from Times Square in New York City to Lincoln Park in San Francisco, originally through 13 states: New York, New Jersey,...
. To fund the road projects, the state introduced its first gasoline tax.
Ku Klux Klan
The Indiana Ku Klux Klan had been rising in power over the past decade in Indiana. Although it was unknown to McCray at the time, over half the members of the Indiana General Assembly were klansmen. Several members of the administration were also klansmen including Indiana Secretary of State Edward L. Jackson. In 1921, the General Assembly passed a bill to approve a "Klan Day" at the state fair, complete with cross-burnings and other Klan trappings. McCray promptly vetoed the bill, angering Klan leaders.The Klan gained even more influence in the government in the following year, and Edward Jackson granted the Klan a state charter and officially recognized their organization. McCray was angry with Jackson over the action, and demanded it be rescinded and threatened to take the measure to court, claiming that no organization could receive a charter unless its leaders would reveal themselves and sign the charter. Grand Dragon D.C. Stephenson ordered Jackson to offer McCray a bribe to change his mind. Jackson offered McCray US$10,000 if he would fill several public offices with Klan members. McCray, a millionaire, declined the bribe and was offended. The dealing was behind the scenes and not made public.
Loan scandal
Land values in Indiana collapsed during the early 1920s and severely hurt McCray's financial position because of his large involvement in land speculation. Although he owned nearly $3 million in assets, he was faced with bankruptcy, but was disturbed at the thought of losing his beloved farm. He took a loan from the State Agricultural Board for $155,000 and deposited into his personal account to cover his debts. He then began soliciting loans from banks by creating fake promissory notePromissory note
A promissory note is a negotiable instrument, wherein one party makes an unconditional promise in writing to pay a determinate sum of money to the other , either at a fixed or determinable future time or on demand of the payee, under specific terms.Referred to as a note payable in accounting, or...
s and using them as collateral. Bank officials later claimed they were coerced by the governor who hinted that he would remove state deposits if they didn't grant him the loans.
Klan members soon found out about McCray's dealings and decided to use the situation to force him out of office. The Indiana Attorney General
Indiana Attorney General
The Indiana Attorney General is the chief legal officer of the State of Indiana in the United States. Attorneys General are chosen by a statewide general election to serve for a four-year term...
brought McCray up on charges of embezzlement regarding the loan he took from the agricultural board. By then though, he had already repaid the loan to the board with the help of several friends. The case ended in a hung jury on April 11, 1924. On April 21, he was brought up on mail fraud charges after it was alleged he had mailed the fake promissory notes to several banks. During the trail he admitted his entire scheme, but declared he intended to repay all of the debts and had no criminal intentions. He was soon convicted and sentenced to serve ten years in prison. He resigned on April 30 and was promptly arrested. The same day, Lieutenant Governor
Lieutenant Governor of Indiana
The Lieutenant Governor of Indiana is a constitutional office in the US State of Indiana. Republican Becky Skillman, whose term expires in January 2013, is the incumbent...
Emmett Forrest Branch
Emmett Forrest Branch
Emmett Forrest Branch was the 31st Governor of the U.S. state of Indiana from 1924 to 1925, serving the remainder of the term of Warren T. McCray after he resigned from office after being convicted for mail fraud...
was sworn in as governor. A close friend of McCray, he cried while taking the oath of office, and later said that everything was so "sudden and surprising."
Later life
After serving three years in the federal penitentiaryUnited States Penitentiary, Atlanta
United States Penitentiary, Atlanta is a medium-security federal prison for men in Atlanta, Georgia. It also has a detention center for pre-trial and holdover inmates and an adjacent camp for minimum security male inmates...
in Atlanta, Georgia
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
, he was paroled and returned home in 1927. While in prison, the Indiana Klan fell apart as their schemes were revealed by the Grand Dragon after he was convicted of rape and murder. McCray resumed his business which had recovered and repaid his loans. He remained reclusive in his home, even after being pardoned by President Herbert Hoover
Herbert Hoover
Herbert Clark Hoover was the 31st President of the United States . Hoover was originally a professional mining engineer and author. As the United States Secretary of Commerce in the 1920s under Presidents Warren Harding and Calvin Coolidge, he promoted partnerships between government and business...
in 1930 after Republican party leaders informed Hoover of the Klan's role in McCray's conviction. McCray remained on his farm where he died on December 19, 1938. He was buried in Fairlawn Cemetery in Kentland, Indiana.