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November 21, 2025

How a 100-Year-Old Trial Impacts Today

Stephenson Prison-Bound

By Jessica L., Local History and Genealogy Librarian

Back in February, I wrote a blog that outlined a list of resources for learning about the Ku Klux Klan and their impact on Indiana and the Midwest in the early 20th century. We’re revisiting it now because of an important trial that took place 100 years ago this November, right here in Hamilton County.

When we learn about the history of groups like the Klan and their leaders, it can be tempting to cast it as “interesting, but not important to my life” or “too difficult” to talk about. However, this trial matters to national history, state history, local history, women’s history, legal history, and more. Learning about this past informs our present – how has our community improved, how has it stagnated, how can we continue to foster growth in the future? Read below to dive into how this trial relates to these questions and find prompts at the end for thinking and talking more about the impact of the history of the Klan.


When the Hamilton County government was considering renovating the historic courthouse on the square in Noblesville in the 1980s, there was a question of how to do the interior. There weren’t any interior photographs of the building from when it was built in 1878, and renovations took place in the mid-20th century that masked what it might have looked like. The solution was to match what it looked like during the most significant trial of the courthouse’s lifespan – the 1925 murder trial of D. C. Stephenson, Grand Dragon of the KKK. Because the trial was so famous, there were many interior photos that could be used to identify original materials and restore the building. A plaque was installed outside the courtroom that talked about the trial and its significance.

But, what was that history, and what made it so famous?

Photograph of the Stephenson Trial inside the Hamilton County Courthouse

This interior shot from an Indianapolis Times article showcases the Stephenson Trial. It was used to guide the 1980s renovation of the Hamilton County Courthouse.

The Background

The Klan in the early 1920s was not only a southern institution that targeted Black citizens in a post-slavery world; it was also anti-Catholic, anti-immigrant, anti-Jewish, anti- “other.” It promoted self-defined ideals of white supremacy and 100% Americanism. This Klan organization became popular after World War I as immigrants from overseas and African Americans traveling in the Great Migration settled in northern cities and towns. Additionally, secret societies or fraternal organizations like the Masons were incredibly popular and served as clubs where you could confirm your social status and feel like you belonged. The Klan also latched onto strong temperance, or anti-alcohol, groups after Prohibition’s passing in 1920.

As this time of change and upheaval happened nationally, stagnation began on a local scale. The Klan fed into worries about the local natural gas boom failing. Natural gas in central Indiana powered the rise of several towns into local industrial centers, and overuse of the resource caused its depletion, leaving immigrants and longer-term citizens alike out of work.

There were active Klan chapters in multiple areas of Hamilton County, as well as other parts of Indiana – there is documented evidence of membership rolls. There was certainly a lot of pro-Klan feeling and some anti-Klan feeling as well. The influence of the Klan is hard to quantify in the modern day, as it was a secret society that was not so secret. It encouraged ritual and pageantry and used well-honed propaganda to encourage hatred of “others.” It preyed on fears that already existed, but it made those fears surmountable by claiming belonging to this group would protect you and keep “others” at bay. It was explicit in its language, boycotting immigrant, Catholic, Jewish, and Black businesses, intimidating locals to “prove” that they belonged, and mentioning on every membership card that being Protestant and Anglo-Saxon was the only way to be truly American. In a time when Hamilton County’s total population was around 23,000, it is not hard to imagine how quickly such a popular group could overtake an entire community, where everybody knows everybody and suddenly suspicions are cast on whether you truly “fit in.”

The Leader

D.C. Stephenson

D.C. Stephenson in the IndyStar newspaper, December 12, 1922 issue

Enter D. C. Stephenson, who was known to be charismatic and politically savvy – he became involved in the resurgence of the Ku Klux Klan in Indiana in the early 1920s as an investment in his own success. Along with an extremely successful marketing plan, the national Klan organization and its state chapters gained huge amounts of dues-paying followers in the first part of the decade. Some estimates claim Indiana had almost a third of eligible men on the rolls – up to 300,000 people.

Stephenson was also known to be violent and abusive towards women. He flaunted wealth by buying a large house in Irvington, Indianapolis. He drank to excess while alcohol was illegal and threw large parties. He enjoyed his power and did everything he could to keep and expand that power. He would soon suffer the consequences of his actions.

The Crime

Madge Oberholtzer

Madge Oberholtzer, International Newsreel photo

Madge Oberholtzer was a 28-year-old white woman living with her family in Irvington. She previously attended Butler University and had undertaken a cross-country drive with a friend, which was uncommon in these early days of automobiles, let alone for young single women. She met Stephenson as she attempted to secure her job in the state education department.

She met with him a few times, sometimes framed as dates. On the night of March 15, 1925, Stephenson called her and asked her to come to his house for dinner. With her job in the balance, she felt like she had to go.

Stephenson then kidnapped Madge, forcing her to board an overnight train to Chicago. On this train ride, he raped and assaulted her, repeatedly. He bit her in several places.

Once they arrived in Hammond, Indiana, it was clear Madge was not doing well. She managed to get permission from her captors to go to a drugstore, where she bought poison. She ate some and got even sicker. They drove her back to her house and dropped her off at her parents’ house, leaving her for dead.

Madge lived for 28 days. Newspaper reporters sat vigil outside her house, reporting every day whether she was still alive. With the help of a family lawyer, she made a “deathbed statement” that described, in detail, everything Stephenson did to her.

Stephenson was arrested. Immediately, lawyers on both sides went into action. Prosecutors asked for and were successfully granted a change of venue for the trial to be held in nearby Noblesville, Indiana, instead of Indianapolis. This was an effort to get a fairer trial, as too many Indianapolis power-brokers were under the Klan’s influence.

Stephenson was transferred to the Hamilton County Sheriff’s Residence and Jail, where the sheriff and his family lived in the same building as prisoners. Because of legal maneuvering from the defense, his trial was delayed until the fall session of court, and Stephenson spent several months in the Hamilton County jail.

The Trial

Newspaper article clipping about the Stephenson Trial showcasing a photo of the Women's Relief Corps lunch stand inside the courthouse.

An Indianapolis Times article showcasing background details of the courthouse’s aesthetic look.

As the trial began in the fall of 1925, it continued to be a national sensation. This “media circus” helped create the photos of the interior of the courthouse mentioned earlier. Stephenson’s lawyers tried to paint Madge as someone who wanted to date Stephenson, who was a “flapper” (with negative connotations), who “committed suicide.” The prosecutors, however, had testimony from doctors that Madge did in fact die from the wounds perpetrated by Stephenson, not directly from the poison ingested. They were able to get Madge’s deathbed statement submitted as evidence, which was hugely important – you can’t cross-examine written testimony. They encouraged the jury to think of their daughters.

The jury, all local Hamilton County white men, were mostly farmers. It took 3 calls of 100 men to find 12 that both sides agreed on. Despite that, 2 were very likely Klan members and one was the brother of the female court bailiff, Nelle Finley. The jury spent their time sequestered in a local hotel, attending church (where the pastor was the Klan chaplain) and movies (a local movie theater was run by Klan sympathizers as the American Theater).

When the arguments for the trial concluded, the jury debated for less than 6 hours. They came back after their first ballot on November 14, 1925, unanimously voting Stephenson guilty of second-degree murder.

Stephenson was taken to Michigan City Prison to serve a life sentence. He was enraged, relying on the governor to pardon him. A pardon never arrived, and Stephenson released names, dates, evidence of bribery, and more to the public, which was extensively reported on by The Indianapolis Times.

The Fallout

All of this served to put a sour taste in the mouth of the average Klan member. If Stephenson, the ultimate leader, was so hypocritical to Klan ideals, what did that say about what the organization stood for? Public support for the Klan faded fast, and membership plummeted by the end of the decade.

Madge’s legacy was supremely important to the outcome of this trial. She never stepped foot in Noblesville, let alone in the Hamilton County courthouse, but her deathbed statement was read aloud and her family testified in the courtroom, all while Stephenson was sitting just feet away.

Stephenson was eventually granted parole in 1950, followed a complicated path of re-arrest and release, and died without much to his name in 1966.

Newspaper article clipping about D.C. Stephenson featuring a photograph of D.C. Stephenson with three other men walking down the street.

This Indianapolis Times article shows Stephenson after an unsuccessful parole hearing.

Reflecting

Stephenson was not on trial for being a Klan leader. His power allowed him to think he could get away with heinous crimes, but he was not arrested or convicted for crimes tied to Klan activity. This makes this story all the more important – that justice won out, despite the huge influence of the Klan. It’s hard to know exactly what the impact would have been on history if the jury ruled “not guilty.”

While it’s tough to think about the level of hatred that existed during the Klan’s popularity, it’s important to talk about because that type of hatred didn’t disappear overnight. While the Klan became less popular after Stephenson’s conviction, people who truly believed in Klan ideals didn’t suddenly flip their racist views. They reorganized into smaller, more hidden groups. Conditions for minorities didn’t get better until national trends of the Civil Rights Movement helped the momentum of movers and shakers locally.

As you continue to discuss the story of the Klan in Indiana, Madge Oberholtzer’s bravery, and the actions of D. C. Stephenson in his rise to power, use the questions below to reflect on the concepts of justice, honesty, and truth, and what it means to be a community.

What does justice mean to me? How can justice be served in my everyday life? What are ways that communities can seek justice for unjust circumstances or acts?

What are techniques for being more truthful in tough situations? How can communities be held accountable to be truthful? How does honesty play a role in calling out hurtful behavior?

How can community be a force for good? What does community mean in today’s fast-paced world? How does a community create belonging? What can individuals do to foster community and help make changes?