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Reno Gazette-Journal from Reno, Nevada • Page 11

Location:
Reno, Nevada
Issue Date:
Page:
11
Extracted Article Text (OCR)

Spa Difficulty Told To Commission Operators of the lush Tropicana in Las Vegas are having difficulty retiring a debt owed to gambler Phil Kastel, members of the state gaming control board ran were into formed in Carson this morning. The gambler, an associate of boss racketeer Frank Costello of New York invested about $320,000 in I the hot during its construction stage. Kastel apparently was under the impression he could get a license in Nevada when the investment was made. State officials refused to issue a gaming permit for the establishment until Kastel withdrew, however. The state launched a full-scale investigation of the Tropicana operation when a note containing inside information on the casino operation was found in Costello's pocket about a month after the hotel was opened.

Costello had been wounded in an assassination attempt shortly before the note was found. The State Tax Commission ordered operators to retire as soon as the Tropicana, possible because of the possibility of a Costello-Kastel link. But attorney B. Mahlon Brown of Clark county, representing casino operators, told the control board this morning that it had been difficult to raise new capital from stock sales. INVESTORS SCARED Unfavorable following publicity the finding of the note apparently had frightened off would-be vestors, he said.

Brown emhasized, however, that the hotel was in no difficulty, was meeting all of its obligations on a current basis. Operators of the company not feel they could pay off Kastel debt from current operating capital, Brown continued, phasizing that the hotel had been operating only four months. A further bar is posed, he said, by Kastel's refusal to accept entire $320,000 in a lump. "There would be too many federal tax difficulties," Brown said. Kastel apparently is experiencing some tax problems already, since a claim against the Kastel funds has been filed by the ternal Revenue Service, Brown continued.

Members of the gaming control board emphasized that the state tax commission believed it very important that Kastel be removed from the Tropicana picture soon as possible. Brown said that the agreement between the hotel operators and Kastel was well known to license agencies when the license was granted, and that it was difficult to change pay-off procedures on short notice. Kastel was to ceive $20,000 every six months for eight years. Gaming control board members emphasized, however, that finding of the note in Costello's pocket changed the situation considerably, and any taint of Kastel ownership must be removed. Brown said the owners wanted to set up a trust fund to pay Kastel, with the proceeds from any future stock sales to go into the account, and with a bank acting as trustee to insure that payments were made to the Louisiana gambler.

The attorney said the owners were demonstrating a willingness to remove Kastel. Gaming control board members said, however, that retirement the debt might well be the most important problem facing the hotel operators and that every effort should be made to follow tax commission order, including borrowing the money if necessary. In other actions, the gaming control board recommended approval of a poker license for Bishop's Game Farm, Reno; recommended a license for 10 new stockholders in the Hacienda, Las Vegas; recommended approval the Hawthorne Monte Carlo, $100,000 enterprise to be opened about Sept. 1 in the old Nevada Club building with Joby Lewis, former Crystal Bay gambler, the operator. Deferred again was the application of Joseph D.

Hornstein, former Reno horse book operator, and nine others to open the El Morocco Club, Las Vegas. The gaming board also recommended the revocation of the gambling license held by Claud D. Farmer at the Comstock House in Virginia City. Board members said investigators had observed cheating at a 21 table on three occasions during June and August. DUGAN PASSES DUGAN PASSES James A.

Dugan, 80, died at a local hospital Monday. He is survived by his wife, Mrs. Elsie A. Dugan. Funeral arrangements are pending at O'BrienRogers Funeral Home.

DEMONSTRATOR Mrs. Joby Henderson, Bell Telephone Company lecture-demonstrator, who will present a program on Sterephonic Sound to the Reno chapter of the Executive Secretaries, tonight at a firm night, which will be sponsored by the Bell Telephone Co. of Nevada. Program Set For Secretaries Paul Garwood, general manager for Bell Telephone Company of Nevada will act as host to the Reno Chapter of Executive Secretaries, Inc. tonight at firm night sponsored by his company.

Guest speaker for the evening will be Mrs. Joby Henderson, Bell Telephone Co. lecture-demonstrator, who will present a program on stereophonic sound. This unique sound-recording technique was developed by the Bell Laboratories, and this is the first time that such a presentation has been seen in Reno. The presentation will trace the history fsound from a simulated version of the first long distance telephone call in 1877 to the roar of a faster-than-sound jet plane as picked up on a stereophonic high fidelity recording.

The executive secretaries present firm nights to get acquainted with the various companies represented in the organization. Contract Fault Claimed in Suit LAS VEGAS- A New York dancer who claims an "international reputation" today sued the Hotel Conquistador, which operates the multi-million dollar Tropicana Hotel, for $278,200 contending the hotel defaulted on a contract. Teddy Rodriques brought the action contending that he was to operate a dance school at the new Las Vegas resort hotel and conduct audience participation dance programs in the early morning hours in the main dining room of the hotel. Rodriques said he had been advised that the hotel does not intend to install the dance school and that he has suffered damages of $250,000 in loss of prospective profits, $20,000 in lost business in New York while preparing for the Las Vegas venture and that he is entitled to $1200 in travel expenses during the time he was attempting to start the planned school here. The action also claims that Rodriques was to have been paid $950 per week for the first six weeks operation at the Tropicana, $633 per week for second six weeks and $422 per week for the remainder of the year.

In addition he was to have received all the proceeds from the operation of the school. Election Plot Charged to Huks a MANILA, Aug. 20. (P) Philippine Army Intelligence agents today were reported to have cap-. as tured Huk documents showing Rebel plans to disrupt the November presidential elections.

The Philippine news service said the documents were seized yesterday in a clash between an army commando patrol and a Huk band in Cavite Province south of Manila. The account said the Rebels were en route to a meeting called by the top Huk leader Jesus Lava to discuss plans for sabotaging the elections. CHAIRMAN NAMED CHAIRMAN NAMED WASHINGTON, Aug. 20. President Eisenhower today named Edward M.

Gadsby as chairman of. the securities and exchange commission (SEC) a few minutes after Gadsby was sworn in as a commission member. THE SCREWDRIVER make it with the Vodka of Vodkas Orange juice with a difference! Just add a generous jigger of Smirnoff and serve ice cold wonderfull Smirnoff. the greatest name in VODKA Jo 100 Proof. Distilled from grain.

Sta. Pierre Smirnoff Fls. (Div. at Heublein), Hartford, Comm. Special Master Plans to Settle Terms of Suit SAN FRANCISCO, Aug.

20. (P) Settlement of the ity" of the Colorado river water suit at an attorneys' conference today has been promised by Special Master Simon H. Rifkind. Concerning the meeting, originally scheduled for yesterday, Rifkind said "nobody else need be there," adding "we'll settle the manageability question." A transcript of the proceedings was to be made for the public record. Rifkind had raised the issue, saying lawyers were taking too long.

Paul L. Billhymer, New Mexico assistant attorney general, had asked postponement of the meeting pending instructions from Atty. Gen. Fred M. Standley of his state.

A suggestion by Arizona attorney Mark Wilmer that the question of Indian rights to waters of the lower Colorado river basin be separated from the case and left to adjudication between the states and their Indians posed a "delicate problem for New Mexico," Billhymer said. California had approved the Arizona suggestion. The start of federal unit-by-ing unit presentation of Indian water rights prompted Rifkind to declare that the case must be made manageable. "I'm not going 1 to spent five years on this case," he said. Hearings on the suit began June 12, 1956.

Arizona originated the suit in an attempt to establish a right to 3,800,000 acre feet of water annually the Colorado river stream. California claims 5,362,000 acre feet and contends the Arizona claim would reduce the California portion by million acre feet. The federal government holds that Indian reservation water rights supersede all state claims. The U. S.

Supreme Court appointed Rifkind special master to hear the litigation. Foreign Aid Bill Still Source Of Confusion WASHINGTON, Aug. 20. (P)- Sen. Lyndon B.

Johnson (D-Tex.) said today the senate appropria tions committee has been told the administration has 12 billion dollars available for foreign aid. He said the group wants to know why more money is needed. But Sen. Knowland of California, the Republican leader, said in a separate interview that "there is no 12 billion dollars available." Knowland also said President Eisenhower is quite hopeful that the senate will vote to restore a good share of the 809 million dollars cut from the program by the house. The house appropriations committee agreed to hear further from the administration before acting on foreign aid money.

Johnson said the committee wants to hear testimony tomorrow from International Cooperation Administration (ICA) financial experts. ICA handles foreign aid. Alleged Spy Seen in Prague VIENNA, Aug. 20. (P) Mrs.

Martha Dodd Stern, accused in testimony before the un-American committee of the U. S. house of representatives of being a Soviet spy, is hiding out in Prague, capital of Communist-ruled Czechoslovakia. There her husband has called the charges against her "fantastic." This was disclosed today by a spokesman for the embassy in Prague after talking with Westerners who encountered the husband, Alfred Stern. a former New York investment broker.

Stern denied the charges made against his wife by Boris Morros, composer and movie director who worked as a United States counter-spy. New Board Member LOS ANGELES. -Western Airlines announced the election of W. H. (Wil) Gonyea, Oregon, lumber, mining and investment executive, to its board of directors.

Make yours a real gimlet with Rose's lime juice! ROSES LIME Only Rose's Lime JUICE Juice makes a real GIMLET! Follow the recipe on Rose's Lime Juice label. Use your favorite gin or vodka. Effort to Aid Lead and Zinc Industry Dims (Continued from page 9) alone, some 380 million dollars of lead and 290 million dollars of zine were consumed in the United States in their refined DECREASE EXPORTS Douglas and Gore also maintained that "higher United States tariffs on lead and zine will directly operate to decrease our exports to the four countries from which we import most of our lead and zinc, namely, Canada, Mexico, Peru and Australia." Furthermore, they said, the bill would "invite and likely provoke economic reprisals of various kinds." "It is ironic, indeed," Douglas and Gore said, "that some who vigorously oppose trade with Communist countries and who. from time to time, denounce our friends and allies for such trade now support a bill whose ultimate effect may well be to drive some of our friends and allies to trade in self-defense with Communist China or with the satellite states." Woolridge Rites Held in Ontario TONOPAH -Last rites for Mrs. Martha C.

Woolridge, prominent Tonopah resident and Nevada clubwoman who passed away at her home here Aug. 7, were held from the Draper mortuary in Ontario, this week. The services were directed by the First Methodist church with the Rev. Huntsman officiating. Interment was made in the family plot at Bellevue cemetery.

August 20, 1957 RENO EVENING GAZETTE-11 Operator Defends Club Before Commissioners Washoe county's newly ized Chamber of Commerce is erroheously accused of engaging in prostitution, Kenneth Vogt president told Washoe county commissioners at their regular meeting this morning. Vogt, who said he founded the chamber. read the statement from a prepared document during a hearing on his application for a county public relations business license. Washoe county District ney A. D.

Jensen said during the meeting that he would recommend that no license is issued until "that place is investigated." The Washoe county Chamber of Commerce is at 6055 South Virginia St. next to Carver's motel, and Jensen devoted most of his questioning to the motel. Jensen was told that Dorothy Hayes, who he said was also called "Sandy" operated the motel adjacent to Vogt's building. which is also known as the "Fellowship Club." Vogt said he had managed her business dealings. such a as property sales, for about six years.

Vogt also said he only leased the "Fellowship Club" and had nothing to do with management of the hotel. Jensen would not reply when Vogt asked him if he believed prostitution was being carried on at the club, or county chamber. the end of the questioning, Vogt read his prepared statement, which ended with statements that his chamber of commerce was beling prevented from accomplishing its goal of betterment for the entire community, and was being attacked through the back door. Vogt walked out on the meeting Now you can buy big on a little-car budget the conclusion of his statement. After he had gone, commissioners continued the business license hearing until 11 a.m.

Friday. In other business. commissioners awarded a $1,253 Bowers Mansion roofing contract to E. Brownwell and received a letter recommending a county smoke ordinance from Nevada State Health Engineer Wallace White. No action was taken on the smoke control ordinance.

Commissioners Ray Peterson and Raymond Capurro were present. Commissioner Ernest Kleppe is ill and is hospitalized. Clark Slayer Is Ruled Sane VACATIONISTS CAUSE STIR British actress Vivien Leigh, right, wearing sun glasses and shorts, strolls through street in San Vigilio, Italy, with her first husband, Leigh Holman, and their daughter Suzanne, 23, during their current vacation together. Mrs. Jean Mann, a lady member of British Parliament from Scotland, called it a "terrible example" that Miss Leigh was vacationwith her former husband, while her present husband, Sir Laurence Olivier, was holidaying in Scotland.

(AP wirephoto) He Carried Tools Surgeon Forgot SACRAMENTO. (P)-A 000 suit has been filed in superior court by a man who contends surgical forceps were left in his abdominal cavity during an operation. Defendants in the action, brought by Albert C. Smith of Sacramento, are the Sutter Community Hospitals, the Mercy Hospital and the estates of the late Dr. Hugh Carmichael and Dr.

Dudley Sealtzer. Smith said the six-inch forceps were left behind during one of several operations during 1947, 1948 and 1949. He said they were found and removed when he was hospitalized by automobile accident injuries in August, 1956. Balloon Reaches 118,000 Feet! CHEROKEE, Iowa, Aug. 20.

(P) Two informal monitors who picked up Maj. David Simons' broadcasts said today they heard him say he had reached an altitude of about 118,000 feet. This would a be beyond the 102,000 goal set for the big balloon and far above the previous mark for manned balloons. Frank Buckingham, managing editor of the Cherokee Times, said he and Lawrence Westphal, manlager of the Cherokee municipal airport, heard Simons say between 9:30 and 10 a.m. (CST): "Well, we're at-let's see, at about 118,000 now and that's about the best we'll do as far as I'm concerned.

I'm ready to start down anytime you're ready." FLY TO THE SOUTH AND POINTS EAST 8 AVA Directions to Ft. Worth- -Dallas Houston New Orleans Fly Bonanza Air Lines to Phoenix. Fast plane connections there speed you on your way to the South and East on American Airlines smooth Flagships! Yes, it's as easy as that. Start anytime. In Reno, call Bonanza Air Lines, FAirview 9-0001.

One Reservation takes you all the way! 8 Bonanza Air Lines AVA AMERICAN AIRLINES LAS VEGAS A psychiatric examination has showed certain "character defects" in admitted killer Robert C. Gonzales, 18, District Attorney George Dickerson said today but the youth knew "right from wrong" in the knife slaying of casino shill Peter Saluk, 67. Gonzales, a former marine from San Antonio, was examined by Dr. Genevieve Shannon, of California's Patton State Hospital and by Robert Lenz, a member of the hospital staff, according to Dickerson. The report of the examiners showed the youth was "criminally responsible" for the June 16 slaying.

The examination had been made at the request of Defense Attorney Harry Claiborne who petitioned the court that there were certain irregularities in the mental makeup of the youth. READ THIS STARTLING FACT 5 out of 10 Smaller Cars wear a Pontiac Price Tag -yet none gives you Any of Pontiac's Advantages PONTIAC GIVES YOU UP TO 8.9% MORE SOLID CAR PER DOLLAR. Not one of the smaller cars can give you the heavy-duty construction, the road-hugging heft and solid security of America's Number One Road Car! PONTIAC GIVES YOU 4 TO 7 INCHES MORE WHEELBASE. Here's extra length where it countsto bracket the bumps instead of riding them! And this extra length shows up inside, too, with plenty of stretch-out room for six-footers! PONTIAC'S PERFORMANCE TOPS THE BEST THE SMALL CARS CAN OFFER BY A WIDE MARGIN. Your Pontiac dealer can give you a complete facts-and-figures comparison and an on-the-road test to prove that Pontiac performance stands head and shoulders above anything in the low-price field! AND PONTIAC HAS ALWAYS BEEN FAMOUS AS ONE OF AMERICA'S TOP TRADE-INS! So why not look and feel like a million -instead of a million others? Trading's Terrific RIGHT NOW! NOW! If you want the ultimate Tri-power Carburetion is models! It's America's newest in both economy and available at extra cost on even power advance and exclusively extraordinary performance, new the lowest priced Pontiac Pontiac's at so low a cost! SEE AUTHORIZED YOUR Pontiac DEALER.

About Reno Gazette-Journal Archive

Pages Available:
2,590,925
Years Available:
1876-2025
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