Except for a brief period in about 1953, when Ruby managed the Ervay Theater, a motion picture house,[A16-259] the operation of nightclubs and dancehalls was his primary source of income, and his basic interest in life during the 16 years he spent in Dallas prior to shooting Lee Oswald. When Ruby first arrived in Dallas in 1947, he and Eva Grant jointly managed the Singapore Supper Club.[A16-260] Shortly thereafter, she returned to the west coast. Except for sporadic trips to Dallas, she remained there until 1959, leaving Ruby a power of attorney.[A16-261] Ruby, who had received $14,000 from the sale of his interest in Earl Products,[A16-262] invested a substantial amount in the club, which Mrs. Grant described as “too nice a club for that part of town.”[A16-263] Ruby changed the Singapore’s name to the Silver Spur Club. It was operated primarily as a dancehall, serving beer to its patrons.[A16-264] In about 1952, Ruby borrowed $3,700 from a friend, Ralph Paul, to purchase the Bob Wills Ranch House[A16-265] with Martin Gimpel, a former associate in the Spartan Novelty Co.[A16-266] The Ranch House was run as a western-type nightclub.[A16-267]
With two establishments to run, Ruby experienced substantial financial reversals in 1952. He abandoned his interest in the Ranch House and, on July 1, 1952, transferred the Silver Spur to Gimpel and Willie Epstein, who assumed some of its debts.[A16-268] Disappointed by these setbacks, Ruby stated that he had a “mental breakdown,” and “hibernated” in the Cotton Bowl Hotel in Dallas for 3 or 4 months, declining to see his friends.[A16-269] Still depressed, he then returned to Chicago, apparently intending to remain there permanently.[A16-270] However, he stayed only 6 weeks. Gimpel and Epstein were anxious to be rid of the Silver Spur and Ruby once again became its owner.[A16-271]
In 1953, Ruby obtained an interest in the Vegas Club, which he operated with Joe Bonds until September 1953.[A16-272] At that time he informed Irving Alkana, who had retained a prior ownership interest, that he was unable to meet his obligations with respect to the club. Alkana then assumed management of the Vegas until June 19, 1954, when, following numerous disagreements with him, he sold Ruby his interest.[A16-273]
Ruby still owned the Vegas Club at the time of his arrest on November 24, 1963. However, when Eva Grant returned from San Francisco in 1959, she assumed management of the club, receiving a salary but no ownership interest.[A16-274] The Vegas, which occasionally featured striptease acts,[A16-275] employed a dance band and served beer, wine, soft drinks, and some prepared foods.[A16-276]
In 1954, Ruby’s Vegas associate, Joe Bonds, was convicted of sodomy and sent to a Texas penitentiary to serve an 8-year sentence.[A16-277] In 1955, Ruby sold the Silver Spur to Roscoe “Rocky” Robinson; however, Robinson could not obtain a license to operate the club and it was subsequently closed.[A16-278] For a few months during this period, Ruby also operated Hernando’s Hideaway, but this venture proved unsuccessful.[A16-279]
Sam Ruby testified that shortly after he sold his interest in Earl Products in mid-1955 and moved to Dallas, he loaned Jack $5,500 to enable him to pay Federal excise taxes on the Vegas. As security for the loan, Sam required Jack to execute a bill of sale of the Vegas. Upon Jack’s default in payment, Sam instituted suit, claiming that he owned the Vegas and that Jack had breached his promise to repurchase it. The case was ultimately settled, with Jack retaining his ownership interest in the club.[A16-280]
In late 1959, Jack Ruby became a partner of Joe Slatin in establishing the Sovereign Club, a private club that was apparently permitted by Texas law to sell liquor to members.[A16-281] Since Slatin was troubled about Dallas news stories describing police raids on a private club that permitted gambling, he felt he needed more capital.[A16-282] Ruby invested about $6,000 which he borrowed from his brother Earl and perhaps some of his own money.[A16-283]
The Sovereign was described as a “plush” and exclusive club, and Ruby was apparently very anxious to attract a wealthy “carriage” trade.[A16-284] The venture was not successful, however. The two men could not work together, and Slatin withdrew in early 1960.[A16-285] Ruby turned for new capital to Ralph Paul,[A16-286] who had operated a Dallas club with Joe Bonds.[A16-287] Ruby still owed Paul $1,200 of the $3,700 loan made in connection with the Bob Wills Ranch House, but Paul advanced him another $2,200, which allowed him to pay the Sovereign’s rent for 4 months. Subsequently, Ruby spontaneously gave Paul a stock certificate representing 50 percent of the equity of the corporation owning the club. Ruby told Paul that if the venture failed, the Sovereign’s fixtures and other physical property would belong to Paul.[A16-288]
Experiencing difficulty in recruiting sufficient members, Ruby soon found himself again unable to pay the Sovereign’s monthly rent of $550. Again he turned to Paul, who loaned him $1,650 on the condition that he change the club’s method of operation. Paul insisted that Ruby discontinue club memberships, even though this would prevent the sale of liquor, and offer striptease shows as a substitute attraction. Ruby agreed, and the Sovereign’s name was changed to the Carousel Club.[A16-289] It became one of three downtown Dallas burlesque clubs[A16-290] and served champagne, beer, “setups” and pizza, its only food.[A16-291] The Carousel generally employed four strippers, a master of ceremonies, an assistant manager, a band, three or four waitresses, and a porter or handyman.[A16-292] Net receipts averaged about $5,000 per month,[A16-293] most of which was allocated to the club’s payroll.[A16-294] Late in 1963, Ruby began to distribute “permanent passes” to the Carousel;[A16-295] however, the cards were apparently designed solely for publicity and did not affect the club’s legal status.