ended with a major scandal and his conviction for murder. This and other cases of "Klan corruption" had left the organization with a decidedly negative reputation among Mid-westerners. Overall, Colescott was unable to stop the exodus of members due to the Great Depression. Lowering the initiation fee from $10 to $6 and providing cheaper robes for new recruits for $3.50 instead of $6.50 did not yield much results. World War II The decline continued during World War II, when most of the Americans began being preoccupied with the issues of national security and Ku Klux Klan "lost social influence, money and political support". The Klan's association with Nazi sympathizer organizations, such as the German American Bund, and with the Detroit race riot of 1943 were detrimental to the organization's public image: a substantial number of Klansmen stopped attending meetings and paying their dues. Since the late 1930s, there were recurring reports of Klansmen involved in floggings, kidnappings, and murders. The incidents seemed to be sporadic rather than part of a systematic campaign. Trying to build a positive public perception of the Klan, Colescott announced to the press that he was "against flogging, lynchings, or intimidations", and also had pro-Bund Arthur Hornbui Bell removed as head of the New Jersey organization. Dies Committee hearing In January 1942, Colescott was questioned by the Dies Committee, precursor to the House Un-American Activities Committee, headed by Martin Dies Jr. (D-TX). Colescott was criticized by Dies for the Klan's alleged anti-Catholicism. During the hearing, committee members John E. Rankin (D-MS) and Joe Starnes (D-AL) defended Ku Klux Klan as an "American institution". The Dies Committee questioned Colescott about the connection of the Klan to violence. He claimed that terrorism was actually against the principles of the Klan, and that the so-called or alleged Klansmen behind these acts were former members, extremists, which the Klan had purged from its ranks. He also testified to the Committee concerning the then-current status of the Klan in terms of membership and finances. There were reportedly less than 10,000 registered members of the Klan. In the financial year 1941, the Klan had only collected $10,000 from initiation fees and other dues. Legal troubles In April 1944, the IRS filed a lien for $685,305 in unpaid taxes, penalties and interest from 1920s against the Klan. The special Klonvocation convened by Colescott decided to dissolve the organization. Before formally stepping down on