Jack Ruby’s pockets and the trunk of his car served as his bank. With a few exceptions, Ruby and his clubs rarely employed bank accounts.[A16-330] Instead, Ruby carried his cash with him, paying the bulk of his expenses and debts directly out of club receipts.[A16-331]
During the latter half of 1963, the Carousel, the Vegas, and Ruby each maintained checking accounts at the Merchants State Bank in Dallas. Balances of the latter two accounts never exceeded $275. In July 1963, the Carousel’s account had more than $500; after August 8, its maximum balance was less than $300. Between May 31 and November 24, 1963, 53 checks were drawn on the three accounts; with the exception of one check for $129.47, all were for less than $100.[A16-332] He generally purchased cashier’s checks at the Merchants State Bank to pay his monthly rental of $550 for the Carousel and $500 for the Vegas.[A16-333] He also purchased cashier’s checks during the 3 months prior to the assassination to pay about $1,500 to the Texas State treasurer, $110 to Temple Shearith Israel, apparently for Jewish high holy day tickets, and $60 to the American Society of Authors and Publishers.[A16-334]
Records of the more than 50 banking institutions checked during the investigation of Ruby’s financial affairs[A16-335] revealed that he had three other dormant accounts, all with small balances.[A16-336] Two safety deposit boxes belonging to Ruby, opened by Texas officials pursuant to search warrants, were empty and unused for more than a year prior to the assassination.[A16-337] Although Ruby negotiated several loans at the Merchants State Bank,[A16-338] there is no evidence that he was the maker or co-maker of other loans,[A16-339] and, after investigation, the Dallas Police Department found no record that Ruby cosigned the note of any policeman at any time.[A16-340]
Ruby’s financial records were chaotic. One accountant abandoned efforts to prepare income tax returns and other financial statements because of the hopeless disarray of Ruby’s data.[A16-341] The record indicates that Ruby was frequently weeks, if not months, late in filing Federal tax forms and that he held numerous conferences with Internal Revenue agents who attempted to obtain the delinquent statements.[A16-342]
Ruby encountered serious difficulties with respect to State franchise and Federal excise and income taxes. The Texas charter of the corporation controlling the Sovereign and Carousel clubs was canceled in 1961, because Ruby failed to pay Texas franchise taxes.[A16-343] And, only after numerous conferences, did Ruby and representatives of the Internal Revenue Service reach agreements on installment payments of various Federal tax liabilities, to which Ruby more or less adhered.[A16-344]
Ruby’s primary difficulty concerned Federal excise taxes. Advised by an attorney that the Vegas Club, a dance hall providing food, was not subject to Federal excise taxes because it was not a “cabaret,” Ruby charged Vegas patrons on the assumption that no excise taxes were due. However, his attorney reported, when Federal courts ruled that dance halls providing “incidental” food were subject to excise taxes as “cabarets,”[A16-345] Ruby became liable to the Federal Government for more than 6 years of taxes, amounting, with interest, to almost exactly $40,000.[A16-346]
Ruby also fell behind on his personal income tax payments. At the time of his arrest he owed more than $4,400 for 1959 and 1960.[A16-347] Remittances accompanied his 1961 and 1962 tax forms, the latter received by the office of the Dallas District Director on September 18, 1963.[A16-348] The following table summarizes amounts which Ruby reported as gross and net income from the Vegas Club from 1956 to 1962; and the taxes due:[A16-349]
| Year | Gross income | Net income | Tax |
|---|---|---|---|
| 1962 | $41,462.77 | $5,619.65 | [F]$1,217.75 |
| 1961 | 40,411.00 | 6,255.29 | [F]1,200.00 |
| 1960 | 44,482.41 | 9,703.90 | 2,221.39 |
| 1959 | 50,981.95 | 14,060.86 | 3,778.17 |
| 1958 | 37,755.65 | 3,274.64 | 586.52 |
| 1957 | 33,671.60 | 2,619.52 | 438.41 |
| 1956 | 30,695.27 | 7,437.01 | 1,527.10 |
[F] Estimated
On his income tax forms, Ruby did not itemize personal deductions and claimed only his own exemption. For 1962, Ruby reported salary income of $650 from the corporation controlling the Carousel, and $900 for 1961.[A16-350]