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.278 For a few months during this period, Ruby also operated Hernando's Hideaway, but this venture proved unsuccessful. 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.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.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.282 Ruby invested about $6,000 which he borrowed from his brother Earl and perhaps some of his own money.283
The Sovereign was described as a "plush" and exclusive club, and Ruby was apparently very anxious to attract a wealthy "carriage" trade.284 The venture was not successful, however. The two men could not work together, and Slatin withdrew in early 1960.285 Ruby turned for new capital to Ralph Paul,286 who had operated a Dallas club with Joe Bonds.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. 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.289 It became one of three downtown Dallas burlesque clubs and served champagne, beer, "setups" and pizza, its only food.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.292 Net receipts averaged about $5,000 per month 293 most of which was allocated to the club's payroll.294 Late in 1963, Ruby began to distribute "permanent passes" to the Carousel; 295 however, the cards were apparently designed solely for publicity and did not affect the club's legal status.
