In 1922, when the Klan-dominated General Assembly tried to pass a Klan Day in the Indiana State Fair, Republican Governor Warren T. McCray vetoed the bill and earned the ire of Stephenson and the Klan. The peak of their power and influence was in 1925, when the Klan had McCray arrested, imprisoned, and thrown out of office on a charge of mail fraud and replaced with Republican Governor Edward Jackson, who was a KKK member. Stephenson is infamous for his words "I am the law in Indiana."