CLOSE

Klan Economics in Black and White (But Mostly White)

The Ku Klux Klan is in the news in Virginia, raising tensions and lowering property values through an anti-Mexican campaign. The KKK passed out flyers door-to-door, a distribution strategy that included many African-Americans. Oops.

"Mexico is invading the United States and soon will demand we cede the southwestern states to their control," the flier warned. It went on to ask Virginia residents to send $10 for more information.

Way back in our second issue, Richard Zacks skillfully tackled the subject of Klan finances. "Kind of like Amway for bigots," he said of the KKK. Here, I'll let him tell you:

Klan Economics in Black and White (But Mostly White)

by Richard Zacks

It sounds like a cruel joke, but it isn't—The Ku Klux Klan made huge profits selling white sheets. The Klan had its own sheet factory in Atlanta called Gates City Factory, which produced hooded white robes at two dollars apiece in 1923, and these were in turn sold to the racist faithful for $6.50. Considering that the Klan peaked at three million members in 1925, there was a lot of money to be made in the worsted white cotton. Many of those millions of dollars were pocketed by the Imperial Wizard and his corrupt cohorts.

In many ways, the KKK was a vast, grotesque pyramid scheme to enrich its top members. Kind of like Amway for bigots.

birthofanation.jpgRed-haired former minister William J. Simmons of Atlanta (below, at right) revived the Klan in 1915—piggybacking on the publicity for D.W. Griffith's film "Birth of a Nation," based on the novel The Clansman—and Simmons charged new members an initiation fee of $10 each, called a klectoken. He also sold Klan life insurance to almost half his first batch of recruits.

But it wasn't until 1920 that a couple of high-powered commission salesmen created the actual pyramid that relaunched the Klan across the nation.

In 1920, a small Atlanta public relations firm, Southern Publicity Association, which had repped clients such as the Salvation Army and Anti-Saloon League, was close to bankruptcy when it signed a deal with the KKK. The arrangement entitled the publicity firm to keep $8 of the $10 initiation fee paid by each new Klan member it signed up.

williamsimmons.jpgThe firm's owners—Edward Clarke and Mrs. Elizabeth Tyler—divvied up the county into "Provinces" and sent out a sales force of 1,100 "Kleagles" (also on commission) to drum up new racist members. The duo handed over a $4 commission per KKK member to each Kleagle and gave $1.50 to a regional supervisor called a Grand Goblin. They kept $2.50 for themselves. The remaining two dollars went straight to the Klan's florid founder, William J. Simmons.

In the first 16 months, Clarke and Tyler had cleared a then hefty $212,000 in net profit, while Simmons received $170,000, according to business historian Charles Alexander. A muckraking campaign by the "New York World" wound up backfiring when the congressional committee investigating the Klan in 1921 brought no charges against them. With this de facto government stamp of approval, membership soared higher than the flames of a burning cross, as did sales of hooded sheets, the Klan newspaper and even the sale of obscure titles, like Imperial Kligrapp and Klexter, Klageroo and Kladd.

By 1922, with business booming, the Klan found itself almost bankrupt. Although it had grossed about $10.5 million in the previous two years, the looting was so excessive there was almost no money left.

A new clique—led by the chubby dentist from Texas, Hiram Walker—bullied their way to top leadership, finally buying out Simmons for $146,500 in February 1924.

Although the Klan under Imperial Wizard Evans dropped the price of custom hooded sheets to five dollars, it wasn't enough to save the Klan. And, appropriately enough for a business scam, back taxes finally put the KKK out of business. In 1944 the Feds sued the KKK for $685,000 in unpaid back taxes. That year the Klan officially disbanded. Splinter groups using the name would sporadically resurface, but never with the same national power or profitable pyramid scheme.

Previously on mental_floss:
"¢ When Typos Get in the Way
"¢ A Looong List of People Who've Attempted Suicide
Strange Gravestones
"¢ Lifestyles of the Rich, Famous and Surprisingly Smart
"¢ Gotta Read 'Em All: Authors You've "Finished"
"¢ The First Time News was Fit to Print, VII
"¢ Quiz: Match the Drug to its Side Effect

nextArticle.image_alt|e
arrow
video
Tips For Baking Perfect Cookies
5668610549001

Perfect cookies are within your grasp. Just grab your measuring cups and get started. Special thanks to the Institute of Culinary Education.

nextArticle.image_alt|e
iStock
arrow
entertainment
Netflix's Most-Binged Shows of 2017, Ranked
iStock
iStock

Netflix might know your TV habits better than you do. Recently, the entertainment company's normally tight-lipped number-crunchers looked at user data collected between November 1, 2016 and November 1, 2017 to see which series people were powering through and which ones they were digesting more slowly. By analyzing members’ average daily viewing habits, they were able to determine which programs were more likely to be “binged” (or watched for more than two hours per day) and which were more often “savored” (or watched for less than two hours per day) by viewers.

They found that the highest number of Netflix bingers glutted themselves on the true crime parody American Vandal, followed by the Brazilian sci-fi series 3%, and the drama-mystery 13 Reasons Why. Other shows that had viewers glued to the couch in 2017 included Anne with an E, the Canadian series based on L. M. Montgomery's 1908 novel Anne of Green Gables, and the live-action Archie comics-inspired Riverdale.

In contrast, TV shows that viewers enjoyed more slowly included the Emmy-winning drama The Crown, followed by Big Mouth, Neo Yokio, A Series of Unfortunate Events, GLOW, Friends from College, and Ozark.

There's a dark side to this data, though: While the company isn't around to judge your sweatpants and the chip crumbs stuck to your couch, Netflix is privy to even your most embarrassing viewing habits. The company recently used this info to publicly call out a small group of users who turned their binges into full-fledged benders:

Oh, and if you're the one person in Antarctica binging Shameless, the streaming giant just outed you, too.

Netflix broke down their full findings in the infographic below and, Big Brother vibes aside, the data is pretty fascinating. It even includes survey data on which shows prompted viewers to “Netflix cheat” on their significant others and which shows were enjoyed by the entire family.

Netflix infographic "The Year in Bingeing"
Netflix

SECTIONS

arrow
LIVE SMARTER
More from mental floss studios