Reno Gazette-Journal from Reno, Nevada • Page 11

Club by club check where evidence points Some Reno casino workers getting tax audits Bates said detailed individual records could be used if they were kept on a day to day basis and added, "any taxpaying American citizen has the right to appeal if he disagrees with our findings." The dealers complained last year, "We are guilty until proven innocent," during audit sessions. Any employe earning more than $20 a month in tips, is required by law to report the income to his employer said Bates. "If they don't report these earnings, they might not only end up paying a large amount at the end of the year, but also lose out on Social Security benefits." must be earning the money to make those payments. "We also have individual tax returns and other information we develop for the particular place of business." Bates said agents look at "other honest returns" and get an idea of what tips should be. He said there was no average though.

"It varies from personality to personality and from shift to shift at each club." RECORDS DOUBTED During last year's meeting with Towell, some 300 dealers said the IRS refused to accept their records as proof of tips and used "arbitrary" accounting techniques of its own. Dealers met with Rep. David Towell, last year to protest the tip audits. Towell said he was in sympathy with the dealers after hering stories of threats, promises, and indocumented records used by IRS auditors. Bates said today, "Not everyone in a club will be audited.

It is only those who have a substantial amount of unreported earnings. LEGITIMATE Bates said a number of legitimate methods were used to determine tip earnings. "We look at the expenses shown on his tax return. If it looks like he has a large mortgage payment, he By TOD BEDROSIAN Casino workers are beginning their annual audit battle with the Internal Revenue Service (IRS) in Reno. Warren Bates, IRS Director for Nevada, said today in Las Vegas, "This is just a regular audit.

We are only calling those people who show evidence of a substantial under reporting of tips." CLUB BY CLUB Bates said there was not an unusual number of casino workers called in, but the IRS audit was being done on a club by club basis. "Quite often we do audits this way. The reason for this is much more efficient use of manpower." Ieno Evening Gazette Zoning change expected despite delay on hotel PHONE (702) 323-3161 ELEVEN RENO, NEVADA, TUESDAY, MARCH 5, 1974 City turns thumbs down on bus line fare increase The council took no official action at its caucus, but appeared to be willing to follow Mayor Sam Dibitonto's suggestion that the offices and condominiums be granted the zoning and separated from the hotel property. The hotel area, planned for commercial zoning, will still be covered under the original resolution of intent. City Atty.

Bob Van Wagoner was directed to draw up appropriate documents for council action at its regular meeting Monday. REVIEW ASKED The council said it would ask for a review in a year on the progress of the hotel. want to stay on top of it," said Councilman Carl Bogart. Councilman Bruno Menicucci confirmed ealrier he had been asked a month ago to try to get financing for the hotel. He said he was unsuccessful in the attempt.

Menicucci was elected to the council after the original resolution of intent was approved. He said he favored an extension of time on the hotel, but said he would probably abstain from voting on the proposal. "I don't think they can fulfill the -conditions the way the money market has been," Menicucci, an insurance agent, said. "We would be doing this community a disservice if we close that thing off," he added. A zoning change for the A.G.

Spanos office-condominium complex is expected to be approved Monday, although all conditions of zoning including construction of a hotel have not been met. In September, 1972, the Reno City Council overruled the Regional Planning Commission and approved a resolution of intent allowing a 90-acre development near Kietzke and East Peckham lanes to proceed. A number of conditions were placed on the rezoning, including a requirement that a planned hotel-casino on the site be under construction within one year. In September, Spanos received an extension of time after telling the council he was unable to obtain financing for the hotel. Monday, he asked that the offices and condominiums, near completion, be allowed a certificate of occupancy even though the hotel construction hadn't begun.

ENERGY CRISIS Spanos cited the energy crisis and bad money markets. "Never, never have I run into as many problems as I have on this project," the developer said. He said he had spent more than $1 million just on preparations for the hotel alone. Spanos asked the council for the requested multiple family residential zoning on the offices and condominiums so that financial arrangements could be finalized. Lloyd said there was a 5-7 per cent increase in passenger traffic for the month of January but that it didn't make up for the 10 per cent decrease posted for the months of November and December.

He cited the Harolds Club refund program and increased costs of gasoline to motorists for the increased number of passengers. J. C. Jordan, general manager of Harolds Club, said, "Over 12,000 bus passengers have come in for their 35 cent refund since we started the program on Jan. 20." He said an average of 300 people per day come in for their refund.

The Reno City Council rejected a five-cent fare increase for the Nevada Transit Co. Monday. Jack Pangborn, secretary-treasurer of the bus line, said the increase from 35 to 40 cents was based on increased fuel costs. Pangborn said that diesel fuel had increased from 26.5 to 42.5 cents a gallon this year and gasoline had jumped from 27.9 to 43.4 cents a gallon. He said the price of both fuels had been raised five cents a gallon on Monday morning.

The proposed fare increase would not have affected the senior citizens' or transfer rates. Stan Lloyd, president of the company, declined comment on the council's decision until the company had a chance to discuss alternate proposals with their lawyers. The city subdidizes the line with $55,000 a year for operating four routes in Reno. Some of the routes have experienced a 68 per cent increase in ridership. Lloyd said the 68 per cent increase did not even pay the driver's salary and there were still less than a 100 people a day riding the routes over a 13-hour period.

He estimated the income from these lines as only being increased from only $15-20 to $30-35 a day. th EDWARD RAGAN Sears names manager Edward M. Ragan, formerly of Sears San Francisco-Mission store, has been named manager of the company's Reno store. Eugene Strand, manager of Sears California-Nevada Zone, said. Ragan replaces Darrell Robinette who has left the company.

A veteran of 26 years' service with Sears, Ragan joined the company as assistant merchandise department manager in Oakland. He served in various department manager assignments there before being appointed softlines merchandise manager in the same store in 1952. In 1953 he was promoted to a similar capacity in the company's Honolulu store. He returned to the mainland in 1958, serving as the softlines merchandise manager in Sears San Francisco-Geary store until 1969, when he was p'romoted to merchandise manager of several softlines departments for the company's Mid-California Group of ten San Francisco area retail stores. In February ,1971, Ragan was appointed manager of Sears San Francisco-Mission store.

He has held that assignment until his promotion to Reno. A graduate of the University of California at Berkeley, Ragan has been active in San Francisco. He was a member of the Board of Directors of.the Better Business Bureau in San Francisco and served on the Mayor's Committee for Hiring the Handicapped. Ragan and his wife, Ludille, have one daughter, Peggy, 22, who recently was graduated from the University of California at Santa Barbara. Reno man found dead in puddle Larger student role Rate hikes Oddie shopping mall construction to start wanted at university for power, Students should be given more responsibility for making gas asked He said construction cost for the department store and overall landscaping for the shopping center site is an estimated $1.3 million.

ACROSS ODDIE The Grand Central Store will be located across Oddie Boulevard from K-mart, which covers 100,000 square feet of space. By LENITA DREW Construction on a department store the first step for a new shopping center in Sparks will begin "in a matter of days," John Hampshire, planning director for John Price Associates in Salt Lake City, said today. The shopping center will be at Oddie Boulevard and Sullivan Lane. It will include a Grand Central department store, a grocery store, specialty shops and parking for 13,300 cars, Hampshire said. HOLD LEASE John Price Associates is general contractor for project and will hold the lease on the shopping center.

Paul Lemoine of Architectural Associates in Salt Lake City is the architect. The entire project is scheduled for completion by November, Hampshire said. The center will border on Sullivan Lane and on future extensions of El Rancho and Greenbrae drives. "As far as competition is concerned, Grand Central is a very professional merchandiser and has done very well in direct competition with other retail outfits," Hampshire said. He said Grand Central carries a broad range of hard and soft goods, including apparel, hardware, fabrics, jewelry, cameras and a garden center.

Two Grand Central stores are under construction in Las Vegas. Upon completion of the three sites in Nevada, Grand Central will have 22 stores, located mainly in the west. It is headquartered in Salt Lake City. the important decisions of the university, Terry Reynolds, outgoing student body president at the University of Nevada, Reno said in the campus newspaper today. Reynolds said he had considered running for a second term, but felt the administration, from the regents down, had not opened up opportunities to students to effectively participate in decision making.

LEFTOUT "Students get the feeling that when the big decisions are made, they are left out," Reynolds said today Students are given only token representation on university advisory committees and they feel domniated, he said. "Faculty members complain that students don't participate when they are appointed to committees. But that is a chicken before the egg situation. "When students are on committees they feel outnumbered. The presidential selection committee is a case in point.

There was only one student on a committee of nine. When we complained of lack of representation, they added one student and expanded the committee to 11," Reynolds said. TURNED OFF "Students do have the responsibility to get involved in the university, but the regents and the administration have the responsibility to open up the process so that students will have a real participation. "Otherwise, students become turned off." Reynolds said he did not feel that students should run things, nor should they have a say in employment and personnel matters. But he did feel they should be included in policy matters, budget allocations and the granting of tenure to professors.

"1 don't necessarily agree with the concept of tenure, but I think students can contribute a lot in determining whether a teacher is good or bad," Reynolds said. Reynolds advised students now voting for new student body officers to look for the candidates who do not promise much, because they will not be able to accomplish much beyond a narrow area. ROBERT FINK Sun Valley man files for Assembly Robert O. Fink, 44, a Sun Valley real estate salesman, has filed for the Nevada Assembly. The Democrat said he had been asked by several people to run and decided to do so when William Bickerstaff, the 32nd District incumbent, announced he would run for governor.

Fink is associated with his wife's firm of Norma Fink Realtors, Inc. He has lived in Sun Valley 17 years and he and his wife have five daughters. The 32nd district includes county areas north and east of Sparks, including Sun Valley and Lemmon Valley, and the Reno areas of Stead and Raleigh Heights. Fink said one problem facing residents of these areas is transportation. He said a mass transportation system needs to be studied and possibly implemented with the help of state funds.

How much such a system would cost and how the funds could be obtained would have to be determined later, he added, after the feasibility and desire for it are established. "We've had some concern in our area from people who could use a system, but I don't know to what extent," he said. Fink said he plans to meet with district voters to learn what their major interests are. Former assemblyman Artie Valentine, also a Democrat, has also filed for the 32nd district seat. Woman dead in cell A Pacifica, woman arrested by the Nevada Highway Patrol this morning was found dead later, hanging by a bedsheet in her cell, the Washoe County Sheriff's Department reported.

The victim was Marian Taylor Hopping, 53. She was married and had been working as a waitress. She had been arrested at 5:08 a.m. on U.S. Highway 40 west of Reno for investigation of driving under the influence of intoxicating liquor and reckless driving.

She was discovered dead at 8:30 a.m. in a cell which she occupied by herself. Investigation was continuing today. George Chandler, who was about 90 years old, was found dead with a head wound this morning near his residence at 24 Rock Rene police said. P61ice were awaiting an autopsy report and other investigation to determine if he-died of natural causes, a fall or a blow.

Coroner William Beemer said Chandler was found in a puddle of water, it He said Chandler was a pensioner and former sheep heder. "Pass-along" increases in gas and electric rates are being sought from the Nevada Public Service Commission PSC) by. Sierra Pacific Power Co. A hearing was held today at the Holiday Inn where Sierra Pacific presented evidence to support the increase in costs, said Neil Romero, PSC staff. If approved, the proposed increases would go into effect April 1.

ALL CUSTOMERS Romero said, "The rates increase will affect all residential customers served by Sierra The company is asking a boost of more than $1.3. million in electric rates' tb-its Northern Nevada customers, of which $532,324 would be applied to residential and small' commercial users. Sierra Pacific said the increase would be 2.8 per cent, or 43 cents per month on the average domestic bill. The utility's proposed gas hike affecting residential customers would amount to $233,575 annually $133,041 of which would be borne by residential and small commercial users. NO PROFITS The rate increase for gas would be about 42 cents" more on the average monthly domestic bill, about a 2.9 per cent hike.

John Madariaga. attorney for Sierra Pacific, said, "No increase profits will be realized from these new rates. The increased rates are necessary to meet the power company's increased costs in fuel and purchasing power." Actress' death ruled natural Hollywood actress Barbara Ruick Williams, 41, died Sunday in Reno of natural causes, Coroner William Beemer said today. He listed the death cause as a ruptured berry aneurysm and intracerebral hemorrhage. Mrs.

Williams, once under contract to MGM and Screen Gems studios, was found dead in her room at the Mapes Hotel. She was appearing in the film "California Split" being made there. Kings Castle offers all hotel services Sun Valley trailer park plan delayed Approval of a 44-unit trailer park in Sun Valley was delayed by the Washoe County Commission today, but a Jehovah's Witness church there did get the commission's belessing. The Board of Adjustment had approved a permit for the trailer park on a commercially zoned parcel at the southwest corner of Sun Valley Drive and West First Street. But Commission Chairman Bob Rusk said the zoning had been intended for commercial use when approved earlier by the commission, and that mobile homes would have a serious impact on water and sewage problems in Sun Valley.

TRAILER IMPACT "The impact of trailers in our community is phenomenal," Rusk said. "We could approve one a week and the county would go broke in the process." 'Boiler-room' status increases for Reno By GARY WARREN Reno might be on its way to becoming the "boiler-room" capital, according to Don R. Cralle, manager of the Better Business Bureau (BBB) of Northern Nevada. In this context, a "boiler-room" is a room filled with telephones and telephone solicitors, usually working for a promoter who has contracted with a company or organization. Cralle said the promoters receive from 50 to 90 per cent of the funds they raise.

He said it amounts to "groups selling their names to the promoter." "Part of the reason they contract with telephone solicitors is greed," Cralle added. "Many groups say that they don't have the time to solicit funds themselves and find it easier to contract with a promoter." LINES LEASED Cralle bases his theory that Reno might become a "boiler-room" capital on the number of calls he has received from Better Business Bureaus (BBB) out-of-state. Cralle said promoters in Reno have leased WATS lines (Wide Area Telephone Service) to call individuals in surrounding states. He said a WATS line is leased from the phone company for a standard rate regardless of the number of calls made. The recipients of these calls are not aware the call is long distance and assume it is a local call from their own community.

Cralle said the promoters often violate other city's ordinances by the use of WATS lines. Cralle said he did not have figures on how many "boiler-rooms" were operating in the Reno area because the promoters are only required to get a general business license from the city. Cralle said that if the BBB receives a few complaints or letters about a solicitor, he will confront the solicitor and ask him to "clean up his own shop." INCLINE VILLAGE -Kings Castle will continue to offer all hotel services in-defintely, James A. Hume, general manager, said Monday. The continued operation of the hotel had been in doubt since casino facilities were closed in January.

The casino will remain closed for the present, Hume said. Remaining open will be the rooms, Kings Table restaurant and bar, beauty salon, health spa, stock brokerage, dress and gift shops. Hume said the Royal Box will re-open soon, featuring a gourmet menu, Cantonese food and a piano bar for entertainment. Starting March 15, first run movies will again be shown in the Camelot Theater, he said. Paul Short, hotel manager, said the hotel has hosted skiers from across the nation during the past few weeks.

Ski club groups havee come from as far away as Indiana and Short Gas posed no real danger A cloud of escaping liquid oxygen resulted in closure of streets adjacent to St. Mary's Hospital Monday, buCposed no real danger, Ffre Chief Harry Van Meter said. The oxygen escaped from a hospital tank being filled by driver Pete Marmollego. -J Couple not really missing Ruling stops cable TV rate hike Washoe County sheriff's deputies said a young couple reported missing on a camping trip at Marlette Lake over the weekend was not really missing. Monday searchers found Leslie Michelle Dale of 4350 Bridle Way, Reno, and Bert Wungnema, 19, of Carson City, unharmed.

It was a case of the girl not returning home when she said she would, deputies said. uu pia pi uc I IN FACT. HE SAYS HE'S NEVER I Told him that i'd bet EVEN BELONcEP TO A THE AVERA6E PAP NEEPS LOTS OF ENCOURAGEMENT relaying them to subscribers in distant areas, was violating copyright laws. The Reno system has been in operation for almost 20 years and rebroadcasts radio and television programs broadcast in San Francisco and Sacramento. The national teleprompter system has just under a million subscribers and about 135 operating systems.

The Supreme Court ruled that cable television does not infringe on copyrights when it rebroadcasts network programs, but said Congress should draft legislation in this complex field. The decision was based qn the logic that CATV systems do not actually "perform" programs when transmitting them over long distances. Nelson said, "It's a very gratifying decision that the Supreme Court has made and I think it is a proper decision without question." Had the court ruled in favor of CBS, Nelson said he did not think the effect on cable television would have been disastrous but that additional costs would have been passed on to the public. The Court reversed a decision by the 2nd U. S.

Court of Appeals, which held that distant transmission of network shows did violate; the copyright law. court decision means cable television rates will not skyrocket, according to a Reno Teleprompter official. 2 Monday the CBS television network '-5 lost a suit it brought against the I Teleprompter Corp. The decision was i made by the U.S. Supreme Court.

According to Gary Nelson, general manager of Teleprompter in Reno, a 5 decision in favor of CBS would have caused cable television rates to i skyrocket in Reno. 3 1- The 6 to 3 decision was the last episode in a lengthy court battle. The i suit. charged that Teleprompter, by i picking up network broadcastsand THAT HE'D BE CLUB CHAMPION THAT HE'S NEVER VJ! PE6N CLU9 tCHAMRCI IF HE EVER T) A CW! Ms..