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Show 2A DESERET NEWS, 10, 1967 Saturday, Jung Investigator's Log: 'Bartender Opened A New Bottle .... Following are excerpts from the care3, of one of the fully kept log, May special Deseret News Investigators: May S: Got $2 10:25 p.m. Arrived Gub membership from owner. Said he had 4,500 members. Bottles out on back bar had names. Bartender served from bottles In stand. Ordered Coke High; placed $1 in machine and won 4 quarters. 12:50 p.m. Arrived . . Gub. Went in with two other men who got us our membership and key for S3. Waitress had order blank with all drinks available listed; Mostly young people and many appear to be younger than 21. May 6: Left home at 9:50 p.m. Arrived at . . . dub. Ordered Coke High for myself and new bottle of bourbon. I poured my drink In plastic container and sealed it. Went to . . . club where we ordered the same drinks. Ordered dinner and were asked if we wanted another drink before dinner. We said no. Left at 12:15 p.m. after ordering a Coke High and a Bourbon to take out. We sealed these in plastic We asked for a bags. Went to the drink but die waitress said they only served beer in this area. Arrived home served a man leave at the same time we did. He drove away in a car that appeared to belong to the sheriff's department. License .... .... May 10: Left at 8:15 p.m. Picked up ($1.20). Left at 10:20 p.m. and went to the . Picked up our membership cards. One of the bottles did not have a Utah At stamp. J. ordered an 11 p.m. left . . . and went to the . . . Gub. They refused to serve us because we did not have a card. Were told to return tomorrow and see May 13: Left at 8:30 p.m. Went to . . ., ordered a drink and got another key for $2. They did not check my membership or ask my name. Went to pinball machine. Put in $1. Took picture of my drink, poured it in plastic sack. Played pinball. Did not win. Went to . . . club at 9:50. Ordered Coke High for 80 cents. J.s Manhattan cost $1. Took samples. Asked . a.m. at . . . .... .... While we were Went to ... p 12:45 J. Ordered beer and a Coke High. Started playing pinball machine. Bottles kept under bar. Ordered second round. Went to at 9:35 p.m. and ordered a beer; ordered a Coke High and the bartender said no. I said I had been served before and he served the drinks . club we ob Gub, Ordered 2 Tom Collins, one Coke High and a Manhattan. Also dinner. Two men came In with a bottle, sat down and watched. We went to the . . . Gub where we obtained memberships at no cost. Ordered drinks, took samples and left We went to the . . . but could get only beer. We then went to the . . . Gub but they would not serve us because we did not have a card. While we were at the . . . Gub we could hear peoples voices but could not find them. We went to . . . Gub. We had some trouble getting In. Hie owner finally let us get the drinks we wanted. He kept watching us. He said he would give J. a card next time. for membership; filled out application, took pictures, gave waitress the application. She brought the card back in about two minutes. We ordered another round and left. at 11 p.m. Crowded. OrArrived dered drinks. Played pinball. Ordered another round, took samples and left Arrived . . . about midnight. Place full. Lively group! Ordered drinks. Played ... pinball and won $4. May 17: ... . Asked Left 8:10 p.m. Went to for drinks. She wanted to know where we worked. We told her we drove a truck. Then she served us drinks. We asked to for buy a bottle. She said she couldnt took they did not deliver her enough. We samples, ordered another round, played the pinball with $1. Next we went to the . . . where we were refused service because we did not have a card. The waitress said to come back when . . . was there. Then we went to five taverns. Could we got an introbuy only beer. At Gub. We bought duction to the drinks. Took samples. J. won $1 on machine with tickets. Ordered another round and left. May 19: Picked up J. and P. Went to the . . . MAY 25 Left at 8 :15 p.m. Drove to city of . . . and went in the . . . Gub. Beer only. We went to . . . where we ordered a beer and a coke. I then asked for a drink, but she said they could not serve drinks but if we wanted a drink we should go to the . . . and ask for R. We went to the . . . where we ordered a beer and a coke. I tried to buy a drink. The bartender said if you want a drink go to the . . . where they will take a chance. Our next stop was the . . . where we ordered a beer and a Coke. They gave us membership cards. The barmaid said we ... ... Could not get drink. Went to drinks. Won $1 on machine. Went to . . . where we bought a Coke and beer. Tried to get a drink but could not. Although 10 people were drinking we could see no would need them in case of a raid. Bought two rounds of Coke Highs. All of the bottles were tagged and when one ran out she simply put the tag on another one. The next stop was the We ordered two Coke Highs and played the pinball. J. won $1 on card machine and was given a ticket worth 20 games on the pinball. The waitress said to bring and . . . would give him a dollar. .... MAY 26: bottle. JUNE 1: AFTERNOON: ... member-Went to the . Obtained ship. Ordered two rounds and watched. Not all bottles had a seal. JUNE 1: EVENING: Went to , ordered drinks. Left and went to . Was not asked for card. Ordered drinks, took samples and left. Next we went to the . . . took samples and left. We went to the . . . club, took , took sample and left. We went to , bought sample and left. Next to the drinks and left. ... ... ... . Left at 8 p.m. and went to the We took our own bottle and it was given to the bartender who opened it and put a spout in and served our drinks from this bottle. We left the bar and went to a table where we ordered dinner In hopes they would lose track of us. When the waitress came to the table I ordered a The Tom Collins and J. a Bourbon waitress came back and said that we could only be served from our own bottle. We tried the . . . but were unable to get in. We tried to enter the Club . . . but were stopped by a man at the door. Gub. We Next we went to the walked in with two other men who were asked for cards. We were unable to get a ... ... JUNE 3: Left at 8:30 p.m. and went to the We sat at a table and ordered 4 round. We ordered wine with the meal and took samples. We then observed a man from the sheriffs office sitting at the bar. We went into the parking lot and found his car parked in front; black Took pictures and left. Ford, license Went to the , but we were asked to leave because we had no card. .... ... .... ... membership. MAY 30: Went to the ... . Could not get a its Easy To Violate Locker its of the Utah Liquor Control Commission to be split up pro rata by all cities and incorporated towns and 29 counties. It was not the intention of If the Liquor Control Act were to be enforced to the letter in each of Utahs private all of which are supclubs and posed to be most of have liquor lockers their charters could be revoked by the secretary of state. But the responsibility for enforcing the Act is spread around so thinly that there are few who can do anything about it. It wasnt always this way. At one time the Act was enforced by a team of men oi the Utah Liquor Control Commission. Their main jobs were into to prevent bootlegging the state and to prevent sale of liquor by the drink. In 1947 the legislature passed an amendment to the non-prof- it a: Liquor gave Miller checks file Clubs Must File Affidavits Utah officials realize the difficulty of enforcing the Control Act as it applies to liquor locker dubs and have buflt some safeguards lntf their administrative procedures to assure that club "owners know the laws affecting them. Ole of these safeguards Is an affidavit which must be sutynltted to Secy, of State fr GytJe L. Miller when a private dub applies for a charter frojn the state making it a corporation. ijach of the 84 private clubs bv ptah has one of these affidavits in its file, along with a non-prof- llstj-o- its f bond $5,800 a membership, and articles of incorporation. affidavit must be signed by the president and saetary of the dub and awern to before a notary piMc. $ie club officers state In the affidavit that they are oi'j&inizers of the dub and with Its purposes and that "said corporation is not bqijbg organized for pecuniary prtfflt; that It will not be used for gambling or other pur-- poses In violation of any law or ordinance induding, but not limited to, violations of the liquor control law as amended. The officers also swear that the dub is bona fide with actual participating members and that a record of membership shall be continually maintained and available to the secretary of state. Recently, Secy. Miller started a policy of asking members of a newly proposed club to answer a questionnaire. Mr. Miller requires at least 100 members in a club before he will give it a charter. He chooses 60 of these at random to be sent the questionnaires. They must name the person who solicited their membership ; state if they are paid-umembers; state the present location of the club; name the members of its board of trustees and who will be the general manager. p which document Another comes from Mr. Millers office Is an annual report, in brief, card form, which is called "Corporation annual report of organiza non-prof- tion. This report requires listing of the clubs address, its date of incorporation, the name and address of its registered agent in Utah. It must be signed and sworn to by an officer of the club. One other document is a letter which is mailed from time to time to the boards of directors of club by J. W. Pace, new acting director of the Li- Act Control $1,000,000 the non-prof- it n, ndij-prof- it does. Sa$ Roland V. Wise, director of Internal Revenue Services Utjh district, took from the Deeeret News a list of private chi 1 Utah compiled by Sefii. of State Clyde L. Miller. He gave it to a small task forte of researchers to check rfT JHJ-- . Wise said the IRS is - permitted under its regula-tlto answer only one ques-ttef- c about income tax returns. T&m is whether or not they been filed. The question cuf be asked of file IRS by Jab 3 about any any individual other Individual or corporation, induding the ones. Mr. Wise said the IRS requires all corporations in the United States to file tax returns. The rule applies equally to as corporations well, and all must file a regular annual return on form 1120 as a corporation unless they have already been determined exempt by the IRS. If the corporation is determined to be exempt, an annual information return (form 990) must be filed every year the corporation is in "business." After checking the list of private dubs, the IRS reported that four dubs in Utah, all chartered by the secretary of state as corporations, filed corporate 1120 re. turns in These clubs are Ginos Towne Gub, 3317 South State St.; Crest Gub. 16 West 48th So. ; and the Salt Lake Sportsmans Gub, 2903 Highland Dr., all in Salt Lake County, and the Vernal Petroleum Gub, at 120 Eait Main St., V VemaL 7 The fact that a stxaSed pri non-prof- state-designat- non-prof- it non-prof- non-prof- it 1964-65- non-prof- Mr. Wise said. However, he added, should an audit be made of a private clubs return the amount of money paid as a managers fee would have to be reasonable. That is, it would have to be a fair and reasonable amount of the dubs receipts nr profits, and, if profitable, BY DRINK Sales Are Numerous 1 j Horse Businessmens Assn., 248 S. Main St Logan Golf and Country Club, Logan; Oak Hills Recre- ation Gub, Ogden; Crescent Gub, Park Gty; Park Gty Golf and Ski Gub, Park Gty: El Camlno, Price; Vernal Empire Gub, Vernal; Silken Saddle, Springville. CtprrifM. Tha Dronl New. 1W7 One year (daily only) One month (dally and 6undav) Six months (dally and Sunday) One year (daily and Sunday) MAIL OEUVERY RATES w,- - carrier service on SunVeM r- day. 3 50 mo, Mail, dally only, $7.00 mo. Mall daily and Sunday, ona month, 3.00. Saturday only by mall. lx months $3.00, ant voar, 5 50. Church Newt only, alx SJOO. on month year S3.S) (avallabit only In araa without carrier service). Member Audit Bureau of Circulation. All mol aubocrlptlono art payable to advance bottles. $5,000. Gub operators buy liquor by the case at the liquor store Membership in many others costs nothing or a token dollar or two. And "membership is as required by the law often not approved by anyone but a bar maid. or they bottleg it into Utah from a neighboring state where they can buy it wholesale and sell it by the drink. There are 84 private clubs listed in the corporation files in Secy, of State Gyde Millers office at the Capitol. Many are sponsored The cards membership passed out so freely by some private clubs are part of a club security system. The owners figure one that "member wont betray the club by bringing around by vet- erans organizations and benevolent societies. Some are social clubs in the pure sense. But others can't be called private clubs even by stretching the words out of shape. Serving liquor by the drink In these clubs isnt the only violation of the law. It just happens to be the one most someone who will upset things. Like a policeman. With the responsibility given to 29 sheriffs and hundreds of police officers in towns and cities, it has become a matter of "break the law because others are. CoyritM; Tt Dnt Now, Respectable and private clubs dont have g IT'S SMART locked doors. The locked doors of the other kind arent locked solely to give members that clubby feeling. Theyre locked to TO MAKI MONEY WITH A CLASSIFIED DIAL 521-35- I a.a. 35 HI I p.a. CALIFORNIA REDWOOD STAIN In STAI3 x4'x7' Da mag handy aL container SEALER Slightly per gal. ad PORCH Exterior ENMAEIL & DECK VINYL LATEX Perfect for Cement, Wood, Linoleum Dries Harder Lasts Longer Reg. $3.49 USED SWIVEL NASH EXECUTIVE WATER SRIS OFFICE Regularly to $40 CHAIRS up a pair S (0 Slightly blemished PRACTICE AMMO s 71 U 19df openly violated. WALL PANEL Temple. Salt Lake Loan Assn., 44 E. 4th So.; Gub Chalet, 2049 E. 6200 S. ; Downtown Professional Assn. Inc., 854 S. State; Iron partment. The membership in a legitimate private club costs up to Philippine Mahogany bond, 107 E. 2nd So.; Putter 1378 W. No. keep out informers and undercover men from the police de- nnr non-prof- it Association, Highland 3939 Dr. ; Gub Sojourner, Highland Dr.; Utah Workers Assn. DBA Salt Laker, 3232 S. Redwood Rd.; Gub Vaga the Many clubs, mostly older ones for whom the liquor locker system was arranged in the first place, adhere to the spirit of the law. into They have lockers which members put the liquor they bojght at the liquor store. When a member wants a drink e or the waiter unlocks the locker, takes out the members labe'.led bottle, and mixes the drink. The member is served his own liquor. He pays for his mixer. Any variation of this routine and the law Is broken. Many of the liquor locker clubs which opera t outside the law dont even go through the motions of installing lockers on their premises. Several asked if we could buy a bottle. She said she couldnt because they hadnt delivered her Gub, Salt Lake Gty have dummy lockers. One club has four or five into which the club "owner stores liquor. He puts his own name on all in the 1M7 Laws non-prof- it Continued from First Page IV 6194 S. ed. Figuring that a deputy shera policeman gets $6,000 DESERET l. E. Lakewood Dr.; Olympic Athletic Gub, 1193 Wilmington Ave. ; Diagonal Recreation It is easy to violate the law regulating liquor locker clubs. The law isnt very complicat- iff or leave something as an equity NEWS interest for the clubs memHM tin St. Rkhard Offlc Editorial bers. AdvertHIng and Clrcalattoh The dube in Utah, all listed 14) I. Main SI. Salt lakt City, Utah Mil as corporations by Eitabllahad Juna 15, 150. Publhhad aach evanhx). Entered at the Salt Lake the secretary of state, which City Poat Offtca aa eecond dee matter have not fulfilled their Feder- according to Act of Congiaaa. March X al tax return obligations are: 17. The Daaarat Nawa PubUHilna Company ataumaa na rewomlbitttv tor manuacrlpta E. and Gub Continental, 61 photoorepha contrlbthed. Phetograehe 2nd So.; Black Bull, 2110 S. and artldM may be iaprlntad only with anitten permission elver In odvanco. 2nd W.; Red Rooster, 1058 S. CARRIER ORLIVIRY RATES One month (dally only) 1140 Con E. Bel State; Gub, Six month (dally only) 3900 S. ; Cottonwood Club, 1780 The result is widespread violation of the law. governor. Gov. Lee abolished the Liquor Commission's enforcement arm. Responsibility of law enforcement, he directed, was to go to the peace officers down the line in counties, cities and towns. Their $1 million per year share of the profits Gov. Lee regarded as good enough pay for enforcing the liquor laws. Salt Lake Qty and County got the biggest share of the problem of enforcing the Liquor Control Act. In 1965, based on a population of 150,259, Salt Lake Countys share of the $1 million was $168,710. Salt Lake Gty, with a population of 189,454, got $212,718.95. prof- - enough. We were refused service bewe didnt have a card. cause quor Control Commission. said to come back The waitress This letter states We are was there. boss the when sure you are familiar with the of the bottles did not "One of law regarding the operation locker clubs but we feel that have a Utah stamp. "The barmaid said: You lookl it is timely to again call to so I will take a chance honest your attention . . . Ordered two! Then the letter quotes from and serve you. Coke Highs. two sections of the Uquor "Played pinball and electronic-tyControl Act. One says no perpe slot machine but could son shall have or keep for on machine sale or possess In Utah any li- not win. J. won $1 tickets. with quor which has not been "She said if we wanted a bought from the Utah Liquor drink, go around the corner. Control Commission. went. Was not asked for The other says it is unlawful We took to keep any liquor in Utah un- card. We ordered drinks, left. and less it is in the original pack- samples "We ordered wine for the age, which must have on it Observed a man from the meal. the official seal of the comoffice sitting at the bar sheriffs mission. a with girl. Copyrlaht, Tt Drool New. IN it vate club with a corporation charter has or has not filed corporate tax returns has no connection with whether or not the Individual "owners or managers involved have filed and paid their individual income taxes, control. early in his first term as 1949, Some Clubs 'forget' Unde Sam! Public records of the United States Internal Revenue Service disclosed to the Deseret News this week that at least 22 of 84 liquor locker dubs in Utah which have state charters as corporations have overlooked one importheir Federal intant detail come tax returns. Evidently the dubs, their mem-beowners, managers, presidents, secretaries, lawyers, tax counselors, executive bartenders and barmaids and boards of directors have forgotten, or dont know, that although the state of Uj4h does not require its own corporations to file infcixne tax returns. Uncle that this money should be used to enforce the Liquor Control Act. But Mayor J. Bracken Lee had a different viewpoint m which from the legislature a year, this money would pay the salaries of 60 men. But it doesnt work that way. The money goes instead into the general fund. Little of it actually is used for law enforcement, much less liquor Drottl Ntwi, Capyrllht, Th G.l. RUCK SACKS Cthoigo ILL A nay. Mest van atilt peck evar eraf. Cempltte with freon aid straps. 66 --- 7.JS 30 carbina 6c rd. 2"x4"x8' STUDDING 8 Reg. $13.95 OTHER PACKS $1 49 P 3 n OPEN EVERY DAY INCLUDING SUNDAYS 9 to 9 Dailyr Sundays 9 to 6 AD |