Nevada State Journal from Reno, Nevada • 8

ESTABLISHED 1870 PAGE EIGHTS! Startling Charges at Las Vegas Involve Democratic Committeeman Uncle Sam Putting Crimp In Reno's Betting Habits Legal Puzzle Delays Reno School Project had never ap Club Club was be con instructions from ATTENTION Dr Vinton A Muller ODDELLOWS! Has returned and Phone 3 4704 Dale Murphy THI NEVADA'S LARGEST HOTEL 1 as to have been subject since the law was that friendly wag to have soon as VEGAS Oct 12 Re to his alleged tie up with of Joe Adonis and Lucky Bids Being Requested or 10 New Culvert i Ji at sO MAPES SKYROOM Thunderbird Ownership Under Investigation Sparks Will Not Take Action Against Bail Broker Kenneth Carter of Tortola was severely injured Sunday when his car left the road near Beckwourth and overturned twice Mr Carter a seaman second class received a serious concus sion it was reported from Portola where he is hospitalized Highway patrolmen said he apparently fell asleep at the wheel of his car STREET DEDICATED Dedication to the city of oster Way between Booth St and Hun ter Lake Drive was accepted by the city council Monday night' The street was dedicated by the Reno school board applicant for a license and Elaine Halley of 520 Spokane St was injured Sunday as the result of a spectacular auto accident two miles north of Reno on Highway195 The sheriff's office said a 1919 ord sedan driven by Annie Lee Ben of 1105 Riverside Drive went out of control and struck a ditch After hitting the obstruction it flipped into midair completely re versed direction and spun across the highway The car rolled backward in a straight line down a 284 foot em bankment before coming to rest Mrs Halley suffered neck in juries and was treated at Washoe Medical Center The car which was not badly damaged tore down four posts and 54 feet of three strand barbed wire in its travel Grandin Worden of Healdsburg Calif told police Sunday that a $25 electric shaver and a $35 jacket were stolen from his car while it was parked in a grocery store park ing lot Mr Worden said a Sigma Alpha Epsilon fraternity pin and a key case were in the pockets of the stolen jacket Adding On Decreasing Games and Slots To Be Reported DRIVE IN SURPLUS OUTLET WAREHOUSE TARPS TENTS COTS TOOL BOXES ANO 1000 AND 1 OTHER ITEMS TOO NUMEROUS TO MENTION Between Riviera Hotel and Smith Tire Co on East 4th St conference with McDonald last of the school that under the Reno Woman Hurt In Car Accident Continental Buffet Luncheon all you wish to eat $175 COEESHOP Excellent food and service Small Damage Results rom Accident Tax Commission Acts on Gaming License Matters Reno Institutes Closer Check On Gambling Houses Colvin Settled His Differences With Rail City A Community Job Help Build the New Reno YMCA Jones Calling Luciano Tie Up Charge Political YESTERDAY: High 77 Low 34 TODAY: Partly cloudy cooler IRE HAZARD HIGH Buddies Alleged Partners Of Cliff Jones Only One Application Is Denied 14 Granted City councilmen Monday night i initiated a new policy which will allow them to keep closer watch on gambling and liquor licensing Read at the council meeting for the first time on Monday were several information forms sub mitted by local casinos and business establishments which are planning to decrease the number of games and slot machines in operation In the past local business estab lishments which have been issued busiess and gambling licenses have been allowed to change the number I and type of gambling devices oper ated merely by applying to the city clerk Since the council had already approved gambling licenses for a business it was felt that routine changes in the number of games could be authorized by the city office without council con sideration New Arrangement Under the new arrangement any change which alters the number or type of gaming devices will he re ferred to the council as a matter of course Mayor rancis Smith explain ing the new policy yesterday said that it has been adopted so that no establishment could change the na ture of its business merely by making routine changes in the gam bling licenses that it gets from the city Previously when business estab lishments get renewals of their li censes from the city clerk each quarter they have often been al lowed to add or delete games or I slot machines without question Since this is the case the mayor said there has been the danger that an owner could change the character of his business merely by taking out more licenses or by changing the type of gaming tables in operation The city has established a policy of discouraging the operation of large scale gaming operations in parts of the city In snme places the council intends that gambling devices should be only incidental the mayor said The new arrange ment which allows the city coun cil to check each change will assure council members that the changes are not in violation of this gam bling zoning policy Several years ago the city coun cil agreed to restrict casino opera tion to certain sections in the down town area During Monday meeting City Clerk Elliott Gill read reports from several major casinos in dicating that several games and a large number of slot machines are being discontinued for the winter season Ten new culverts will be installed in the city in the near future it was announced Monday night at the regular meeting of the city council Upon the suggestion of City Manager Tom Hilberg the city council decided to ask for bids for the installation of the culverts Bids will be opened at the No vember 1 meeting of the council Thorn are several places where ditches cross streets and alleys that new concrete culverts are needed the council was informed $50 Annual License ee 10 per Cent Of Bets Now Demanded Russell and Cahill Use Low Tactics Says Lt Governor Wind Overturns lat Bed Truck Car Stolen Here ound Damaged State Law Vague About How Soon Million Dollars Will Have to Be Repaid resumed practice at 475 Hill Street Bail bond broker Ike Colvin has settled his differences with the city of Sparks Colvin conferred with city offi cials yesterday to explain his part in a controversy over the issuance of bail bonds to three persons charged in the Sparks police court with drunken driving In a report submitted to the city council Monday night Police Judge Herman Worthman sug gested alleged irregularities in the handling of the three bonds be sub mitted to the state insurance com missioner for consideration Yesterday however Mr Colvin explained his side of the case to the apparent satisfaction of the city and no action is now being contemplated against him The bail bond broker had his license revoked several weeks ago by the insurance commissioner for allegedly charging over high pre miums and other matters Claiming the entire matter a misunderstanding Colvin took the case to the district court which ordered his license reinstated pend ing a hearing Meeting Slated Today By Young Republicans Washoe County Young Republi cans will meet today at 8 pm at party headquarters on Virginia St with all Republicans between the ages of 20 and 40 urged to at tend Plans for the rally to le staged October 29 will be discussed Serv ing with Jim Wood in planning for the rally is Bino Grifantini HIKER ORGETS TOOLS Jeremiah Kelly of Long Beach Calif would like to find the friend who gave him a ride from Haw thorne to Reno Mr Kelly said he forgot his clothes and kitchen tools in the car when he got out of it on ourth St Sunday A cook the tools are necessary for Mr Kelly to ply his trade TERRACE RESTAURANT 'and Codktail lounge OPEN 24 HOURS UTE DANCING and entertainment rom 11 PM eicept Tues Californian acing Reno Driving Count William Clyde McCants 38 of Coleville Calif was in the Reno city jail yesterday charged with er ratic driving and driving without a license McCants was arrested Monday night at ifth and Eureka Sts by a officer He was turned over to city police for investiga tion LAS ferring friends Luciano in ownership of Clark Thunderbird Hotel Cliff Jones said yesterday that Gov Charles Russell and Robbins Cahill secretary of the Nevada Tax Com mission had resorted to "the lowest political tactics seen in all my years in the game" The lieutenant governor said the governor "is attempting to use the tax commission to discredit the Democratic leadership in a cam paign in which he is finding in creasing difficulty in getting any support" Jones added he peared before the tax commission on behalf of any Nevada gambling have never discussed pending censes with any commissioner anvtimp" governor and the other members of the tax commission are fully aware of this he said never thought the governor would permit himself to be used in this Jones said "but it is quite evident the Russell supporters are becoming "Politics and certain law suits now pending in district court in Las Vegas involving the newspaper the Sun) and a wealthy supporter were behind the tax commission Jones said "The public should wait until all the facts are known before form ing any Jones continued "If one of the motives is to dis credit Vail Pittman in the guber natorial and sure this is 1he it is doomed to failure for the Democrats of Ne vada are far too smart to swallow the The Sun charged in its copy righted articles that certain gam bling interests were supporting Pittman because of a plan to take over control of the tax commission and oust Cahill from his job as secret arv The Sun added is no evidence that Pittman knows of this a Although Hugh was not to blame for the mishap the police dopl Snl submitted this picture as a graphic lessen bicvcle sajety are urged Io teach their children safecyclms habits and tha youngsters themselves are asked to observe extraor Reno Lodge 14 Social Night Entertainment Refreshments All Oddfellows end Rebekahs Invited 8:30 pm Thursday October 14 1954 CARSON CITY Oct 12 Gambling license action taken by the tax commission today included the following: Granted: John Duncan McCabe and James eller Johnny Duncan Whitnev Bar Whitney Glenn and Warren Doing Exchange Chib Beatty Ted Irzyk Clover Games allon' Candido Urizar Winnemucca Laurence and Estelle Saralegui Commercial Hotel Bar Battle Mountain Guldmar Bond and John Ran drup El Rio Club Las Vegas Guy Hanson Lighthouse Bar ernley luonis Gibellini Eureka Ralph Dunlap Leon's Bar cl lon Luther Guy Cochran Leo and Eddies Reno Kenneth MacEachcrn Melody Inn Whitney Ralph Womack and William Pendleton Nevada Club Haw thorne rancisco Licini Rancho Bar games Reno Dolores Spencer slot machines Las Vegas Deferred: Hooper Bank Club Eu reka Paul Sagusa and George Nel son El Rancho Club and Hotel Wells Joseph Haskin Lyon Bar and Casino Yerington Harold Garman Leonard Biljer and Willard Christ Hotel Last rontier Las Vegas Alfred Caudalh Villa Venice Las Vegas Walter Stutz Paul Agsten red Treviliian red Wcichman Dr Lennon A Toberoff Charles Marcms Paul McDonald David Caplow Sol Gershenhorn and Jack Rosen Denied Valentine Aja Richford Hotel Gardnerville if Portola Man Injured When Auto Overturns By ROBERT BENNYHO Vnitfd Press Staff Correspondent CARSON CITY Oct 12 The Nevada Tax Commission to day ordered a full investigation of allegations that two notorious gamblers hold secret interests in the Thunderbird Hotel on the Las Vegas Strip The commission which regu lates legalized gambling industry identified the pair as Meyer and Jake Lansky The Kefauver crime report linked the two men closely with an underworld syndicate which in cluded rank Costello Joe Adonis Willie Moretti and Lucky Luciano Jones Is Part Owner One of the nine owners of the Thunderbird one of eight luxury hotels on the fast growing Las Vegas Strip is Lt Gov Cliff Jones named only 10 days ago as Democratic national committeeman Major owner of the Thunderbird is Marion Hicks of Las Vegas with 51 per cent Commission Secretary Robbins Cahill said Jones would be among the persons to be questioned by the commission Russell vs Corruption The decision to conduct the in vestigation followed a declaration by Gov Charles Russell tax com mission chairman that "I am op posed to any corruption in the gambling industry or corruption related to legalized gambling in "I myself will not be placed any position other than fighting the control of any individual or group whether they be private citizens or stale officials who would manipulate for their own Russell said "The present commission is composed of men of honesty and integrity and will have no part in such Nevada gambling law provides that all persons interested finan cially in gambling casinos must appear on the gambling license held by such places No gambling duh ran oncrate without a gam bling license Effect on Election The commission's action expected to have a far reaching effect upon Nov 2 gen eral election Russell a Repub lican is seeking election to his second term against Democrat Vail Pittman a former governor The action fol lowed by two days publication in a Las Vegas newspaper (The Sun) of the first of a series of copy righted stories linking Jones with alleged irregularities in gambling and liquor license matters in Clark county of which Las Vegas is the county seat The tax commission already is conducting an investigation into charges that undisclosed interests exist in the Hotel Last rontier another luxury hotel on the Las Vegas Strip Indirect Approach The matter was approached by the tax commission indirectly earlier in the day during question ing of two applicants among 11 seeking gambling permits for the Desert Spa in Las Vegas red Treviliian a Santa Bar ira hotel ooerator was asked by Cahill whether anyone had made any to him concerning getting a gambling license or sug gested that there might be "de unless the aid of certain per sons was enlisted not Tre viliian replied He added he was interested only in the dining room hotel and theater restau rant portions of the hotel A Toberoff a former Izs Angeles hotel fixture merchant who is to be purchasing agent of the new hotel was asked a similar Question Loose Conversation Toberoff seeking a gambling permit for a ten per cent piece of the Desert Spa replied been a lot of loose He said that "some chap from Los Angeles called me (within the past month) and said he had been told that unless there was a we couldn't get a license Toberoff said that at that time and during a subsequent talk with the Los Angeles resident whom he identified as Jack Richmond he told the latter "to go to and emphasized he was not inter ested in such a proposition Richmond Toberoff said under path had sold the hotel $45000 worth of fixtures Monday morning the day the Sun articles began appearing two men connected with a Las Vegas dairy which is seeking to do busi ness with the Desert Spa ap proached Toberoff with sugges tions about getting a gambling oociini rnnvprsation think any threat was meant I honestly feel they meant in any way shape or form to pres sure us I think they thought they were just trying to be help ful since they wanted to do (dairy) business with 'I don't think they meant any thing by he said "It was just casual conversation I don even know if they had the morning newspaper by that time BICYCLE STOLEN Alfred Mitton of 926 Second St told police that his bicycle was stolen Monday night from in front of the public library Mr Mitton said the bike was painted red and that its rear tire was almost worn out license he told the seven commis sioners The dairy men Toberoff said suggested the hotel might fare better with its license application by employing Jones as an at torney Asked by Russell if the dairj men had suggested that the li cense might be held up until aftei Jan 1 if this were not done Tob eroff replied Toberoff testified "it was just 1 UUI1 I Those were mighty strong winds in the Reno area yesterday Wreck er driver Gifford Holt 29 of 540 Colorado River Ave will testify to that The Washoe county sheriff's office yesterday laid partial blame for an accident in which Mr Holt was involved on a strong gust wind which oveturned a flat bed truck being towed behind his WD wrecker Little damage was done to the truck which is owned by Russell Victor of Auburn Calif or to the load which was stacked on it The accident occurred about two miles west of Reno on Highway 40 Mr Holt who was going about 25 miles an hour at the time said he felt the load going out of control and pulled to the shoulder of the highway to avoid endangering on coming traffic Uncle Sam has put a severe crimp in one of oldest traditions the wager No longer is it possible for taverns and clubs to take bets on elections sporting events and other contests unless the proprietor pays a federal tax of 10 per cent on the amount wagered and each person accepting bets pays a special tax of $50 per year I i ni Ch under wheel of the sedan pictured below is LE the bicycle on which 13 year old Richard Hugh orson of 1260 California Ave was riding last svi ifeied painful injuries when he was thrown nom ne the front binary caution at all times nnf nn it whip It was UidSfi' X'X wheel The driver of the car was fined $25 lor tailing io lr Vagueness of the state law on the matter of issuing bonds in series may delay the plan of the Reno School Dis trict to borrow $1090000 to erect a new intermediate school in the southeastern part of the city The school district which was authorized to issue S3 000000 in bonds in a special election last planned to issue one third of the authorization for the new school A total of $600000 in bonds has already been issued under the authorization However in a attorney Russell night members board were told present law it may be necessary to pay off the bonded indebtednesswithin twenty years of the date of the authorization instead of with in 20 years of the date of the issu ing of the bonds If the school system were re quired to redeem the bond issue within 20 years after the authori zation it would require larger annual payments and would be a greater burden op the school in come over the shorter period of time One purpose for delaying the issuing of bonds was to work the cost into the tax structure gradually Retroactive Maybe? The board of trustees consid ered the possibility of issuing the bonds in the near future and mak ing them retroactive to May 1 This alternative would require paying first interest on the bonds in November 1955 for 1he period between 1 1954 and Novem ber 1955 This method was taken under study Present bond retirement factors will be considered and a bonding attorney will suited Board members hoped the money available as possible in order to begin con struction in the near future It was indicated that the state legis lature will be asked to improve the present law Mr McDonald said that the intent of the legisla ture was to make it possible for bonds to be issued in series but that the law does not make itclear that series issuing allows for 20 jear redemption Affected World's Series The regulation was enforced here for the first time during the recent world series Evans district director of the Internal Revenue Service said it applies to wagering on the forthcoming elections Several Reno gambling houses already pay the taxes and will con tinue to take bets However many other establish ments which took bets and con ducted pools on what they consid ered a non profit basis have been forced to discontinue the practice for the simple reason the cost would be prohibitive The wagering tax law was en acted by Congress in 1951 but un til June of this year the Internal Revenue 'Service never attempted tn collect the excise and occupa tional taxes in cases where the en tire amount bet was turned over to one or more winners without any take out for the house Revenue collectors across the na tion looked uoon such betting "friendly not subject tax New Interpretation That interpretation was revised last June when the commissioner of internal revenue issued a ruling in which he said: "The expectancy of a profit In the form of increased sales of mer chandise resisting from additional customer traffic must be assumed in the operation bv a merchant of a wagering pool or a punchboard or a similar type of lottery on his premises even though he derives no profit directlv from the sale of tickets or chances therein it is held that the operation of such a wagering pool nr a punchboard or similar tyne of lottery in which a wager is placed entitling the participant to a chance to win nr lose is a wager ing nool or conducted for Tools and Lotteries The operator of such a' pool or lottery the ruling continued is liable for the wagering excise tax of 10 per cent of the gross amount bet and for the S50 ner year spe cial tax for clerk or other person who receives wagers in the pool or lottery In line with the ruling the district revenue office here investigated report that some Reno taverns were conducting world series pools with the winning customers to receive the entire amount bet One well known club which for vears has been the scene of friend ly wagering on the world series and elections abandoned the baseball pool Another tavern was too far along with its series pool to abandon it and was required to pay 10 per cent of the amount bet phis $50 for each person who tool: bets Taverns Protest Both of the taverns mentioned protested to the Internal Revenue Service pointing out they had been allowed to conduct the pools in the past and now were being required to pay the taxes even though the law had not been changed Evans' office replied it was sim ply following Washington Election bets to the tax ever enacted exccnt ers were not interpreted to be in cluded In a lengthy deserption of the scope of the tax the revenue act of 1951 mentions wagering on "con A contest the law says "in cludes any type of contest involv ing speed skill endurance popu larity politics strength appear ances etc such as a general or primary election the outcome of a nominating convention a dance marathon a log rolling wood chopping weight lifting corn husking beauty contest etc Jiate journal RENO NEVADA WEDNESDAY MORNING OCTOBER 13 1954 KM 1W' A I A A gWgWu IIMT 1G Aw vpjwbhfk YimuMi a zAi 5 mry srAM 'N i i jU w' Xi Mt gX a ru or AtorneyXzeneral Al.