Records of the more than 50 banking institutions checked during the investigation of Ruby's financial affairs 335 revealed that he had three other dormant accounts, all with small balances.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.337 Although Ruby negotiated several loans at the Merchants State Bank,338 there is no evidence that he was the maker or co-maker of other loans,339 and, after investigation, the Dallas Police Department found no record that Ruby cosigned the note of any policeman at any time.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.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.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.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.344

Ruby's primary difficulty concerned Federal excise axes. 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," 345 Ruby became liable to the Federal Government for more than 6 years of taxes, amounting, with interest, to almost exactly $40,000.346

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 1960.347 Remittances accompanied his 1961 and 1962 tax forms, the latter received by the office of the Dallas District Director on September 18, 1963.348 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: 349

Year Gross income Net income Tax
1962 $41,462.77 $5, 619. 65 1 $1, 217. 75
1961 40, 411. 00 6, 255. 29 1 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
1 Estimated.