Mr. Hubert.

I see.

Mr. Paul.

He thought he would be able to sell the club, so I give him the stock certificates; you know--you deal with people in money, that's true, and you are very careful, but sometimes friendship overshadows a lot of things.

Mr. Hubert.

I gather from what you say there that therefore there was a close friendship between you and Jack. Did you continue during that time on a friendly basis; that is to say, visiting at the Vegas or Sovereign Club?

Mr. Paul.

Yes; we were always friends.

Mr. Hubert.

You think you saw him two or three times a week during that time?

Mr. Paul.

Yes.

Mr. Hubert.

That would be from 1958 on?

Mr. Paul.

No; prior to that I saw him a lot of times before.

Mr. Hubert.

Jack was never married, was he?

Mr. Paul.

No, sir.

Mr. Hubert.

Where was the Sovereign located? Was it the same place as the Carousel?

Mr. Paul.

That's right.

Mr. Hubert.

Do you know anything about the changeover from the Sovereign to the Carousel?

Mr. Paul.

Oh, yes; I forced him to change that over.

Mr. Hubert.

All right; tell us about that, if you can tell us the dates and times, as close as you can.

Mr. Paul.

And, he needed money; the Sovereign Club was dead, as far as he was concerned. Either he closed it or either he closes it or he does something else with it. So, I told him to change it to a burlesque house and I will give him $1,650 to pay more rent on the place so he could go on, so I loaned him $1,650 more to turn it over to a burlesque. That's when he changed it from the Sovereign Club, a private club, to a burlesque house, which was an open place.

Mr. Hubert.

In other words, with the Sovereign Club you had to belong to the club?

Mr. Paul.

That's right.

Mr. Hubert.

Sort Of a bottle club, as required by the laws of Texas?

Mr. Paul.

That's right; he had a bottle club.

Mr. Hubert.

If you belonged to the club, you could buy liquor in the club, and if you didn't you couldn't, and it was your thought that the thing could be a success if its nature were changed?

Mr. Paul.

Yes; well, it's an open place.

Mr. Hubert.

It's an open place, a burlesque house, but, of course, you couldn't sell hard liquor?

Mr. Paul.

No.

Mr. Hubert.

But it would set beer?

Mr. Paul.

That's right.

Mr. Hubert.

But your proposition to him was that you would advance $1,650 in the new venture to at least pay the rent for some time?

Mr. Paul.

Yes.

Mr. Hubert.

Do you know anything about the incorporation of the S. & R, Inc.?

Mr. Paul.

Yes; the S. & R. started the thing. That was the first deal; S. & R. is Slayton and Ruby.

Mr. Hubert.

When you say "the first deal," are you speaking of the corporation that existed with reference to the Sovereign Club?

Mr. Paul.

Yes, sir.

Mr. Hubert.

Are you aware that there was a corporation called Sovereign, Inc., that owned the Sovereign Club?

Mr. Paul.

Yes.

Mr. Hubert.

I think you told me that he endorsed over as security 500 of the shares?

Mr. Paul.

Yes.

Mr. Hubert.

That was not the S. & R. shares with the stock certificates, was it?

Mr. Paul.

The S. & R. was the Sovereign Club. The original Sovereign Club