(Testimony of Ralph Paul)
Mr. Hubert.
Then, did you ever have any financial interest in the Vegas?
Mr. Paul.
No, sir.
Mr. Hubert.
You don't now and never have had any?
Mr. Paul.
No.
Mr. Hubert.
Do you have any, or have you ever had any financial interest in the Sovereign Club?
Mr. Paul.
Actually--no--not interest at that time, but when I loaned him money on the Sovereign Club, that was after he went out with his partner. He and his partner couldn't get along--Slayton.
Mr. Hubert.
That was Joe Slayton?
Mr. Paul.
Yes.
Mr. Hubert.
They had started the Sovereign Club and they couldn't get along and Jack needed some money?
Mr. Paul.
Yes.
Mr. Hubert.
You loaned him some money, then, did you?
Mr. Paul.
Yes.
Mr. Hubert.
How much?
Mr. Paul.
Well, I think I loaned him for 3 months' rent or 4 months' rent--$550 a month, because that was the time he couldn't pay the rent.
Mr. Hubert.
You loaned that in cash?
Mr. Paul.
No; I give him a check--not in cash.
Mr. Hubert.
You gave him a check?
Mr. Paul.
A check--I gave him a check.
Mr. Hubert.
Did he give you any evidence of indebtedness?
Mr. Paul.
No; the following year he gave me 50 percent of the club, telling me that if the thing don't go, the fixtures and everything should represent my money.
Mr. Hubert.
You had no note about it?
Mr. Paul.
No; he gave it to me I knew about it.
Mr. Hubert.
No; but did he give you a note?
Mr. Paul.
No.
Mr. Hubert.
Was there any kind of written agreement?
Mr. Paul.
It was a stock receipt.
Mr. Hubert.
That was a corporation?
Mr. Paul.
Yes.
Mr. Hubert.
And he gave you a stock certificate?
Mr. Paul.
That's right.
Mr. Hubert.
Do you remember how many shares it was for?
Mr. Paul.
Five hundred.
Mr. Hubert.
Was that half of the corporation?
Mr. Paul.
Half of the place.
Mr. Hubert.
And he endorsed that over to you?
Mr. Paul.
Yes, yes; I think he did--he and Slayton--I think did.
Mr. Hubert.
And what was the consideration, that is to say, what money did you pay for that?
Mr. Paul.
To open up the Carousel----
Mr. Hubert.
No; I'm talking about the Sovereign.
Mr. Paul.
The Sovereign was no consideration--just the stock deal, that if anything happens to the club I should get some money out of it for the fixtures.
Mr. Hubert.
Well, as a matter of fact you had actually loaned him 4 months' rent at $550, whatever that is?
Mr. Paul.
About $2,200.
Mr. Hubert.
Yes; $2,200, so, was it considered that that loan or that indebtedness was the consideration for the stock?
Mr. Paul.
That's right.
Mr. Hubert.
Or, was the stock merely to secure it?
Mr. Paul.
That's the security of that money--the stock was the security of the money.
Mr. Hubert.
In other words, if he had paid the money back to you, he was entitled to the stock?
Mr. Paul.
That's right. In fact, he took the stock certificate one time; he thought he would be able to sell the club.
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