Evening star., 1953-02-05
D. {. Tax Office
Begins Probe
0fBottIeCIubs
Action Seen as Part
Of Concerted Drive
Against VioIotors
By Chorles 6. Brooks

BY Charles 6. Brooks
The District tax Office today
launched an investigation into
taxes paid by all after-hours
clubs and their operators, as de-
partment after department fell
in line with the campaign to
close down clubs violating local
laws.
Guy w. Pearson, District col
lector Of taxes. said his Office is
reviewing the entire bottle club
tax situation.
The action is viewed to be the
result of the high-level confer
ence United States Attorney
Charles M. Irelan held early this
week with various local officials,
when a concerted effort was
launched to force the illegal
clubs out of business.
Two Suits Filed.
Immediately afterward, As
sistant United States Attorney
Hugh j. MCGEE filed suits against
the Downtown Club, COG E street
NV, and the Picadilly Social
Club, 1901 Fourteenth street
NV. The actions are aimed at
keeping the Downtown Club
from operating here under its
Virginia charter and to revoke
the District charter of the Pic
cadilly Club.
Meanwhile, the Board Of Di-
rectorS of the Restaurant Bever-
age Association yesterday voted
unanimously to commend Mr..
Irelan and Mr.. MCGEE for their
fortnight action in dealing
with the after-h hours club situa-
tion here"
The commendation was fol-
lowed by a three-point resolu-
ton, which called for new legis-
lation with teeth" in it to en-
able the Metropolitan Police De-
partment, the corporation coun-
sells Office and the United States
attorneys Office to deal more ef-
fective blows at the clubs.s
Extension of Hours.
It also asked that Saturday
closing hours for class c and D
restaurant licensees be moved
from midnight to 2 am. The as
sociation further suggests more
policemen and higher pay for the
force.
In the announcement from the
tax Office. Mr.. Pearson pointed
out that his staff often can do
more than the police are allowed
to do under law. if any tax law
violations are involved.
He pointed out that after
hours clubs are usually subject
to personal property taxes, sales
taxes and often income taxes.
Most of the clubs. according
to their. charters, contend they
operate for charitable purposes
or on a non-profit basis for the
enjoyment of their membership.
However, Mr.. MCGEE says many
of them use their charters as
shams and Subterfuges for the
personal profit of the operators.
who "run actual commercial es-
adjustments"
Mr.. Pearson today recalled
that the tax Office was instru-
mental in closing the old Stage
crafters' Club, 433 Third street
NV, and others in 1851.
Certain Clubs Target.
Meanwhile, Mr.. Irelan point
ed out that the co-ordinated at
tack on after-hours clubs ap-
plies only to those clubs believed
to be violating District laws and
encouraging the breeding of
crime.
He said that Of some 100
bottle clubs in Washington.
there are about Is he believes
to be serious violators of local
liquor laws. He emphasized there
are many fraternal clubs and es-
tabliShments that conform
strictly to the law.
''We have no quarrel with
these legitimate places" he de-
clared.
The breakdown on local bottle
clubs is similar to the Districts
war on a dozen clubs two years
ago. However, many Of them re-
opened after their charters were
revoked and returned to busi-
ness under different names.