Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-14

into a Calumet club when she
was somewhat broke.
She said her contract called
for a salary of $125 a week but
when she got to the "21 Club"
she was told she would be paid
only $50 a week and had to
mix with the customers.
The subcommittee went over
her payroll slips and noted no
deduction for social security or
Withholding taxes. Chairman
Mcclellan noted that on a pay
roll slip from the Bandbox Club
in Hurley, Wis. the words
withholding tax" were crossed
out and the 10 per cent for her
agent was inserted.
1.-The agent got his money"
Senator Mcclellan remarked.
Miss Gainsley, VINO answered
in monosyllables, was asked If
the club tried to force her into
prostitution.
yes" she replied.
WAS it the customary prac-
tice," asked Subcommittee
yes"
Senator Mcclellan brought
IOut that when Miss Gainsley
who was also a member of two
theatrical unions, worked I'M
der contract for the other
unions all the proper taxes were
deducted.
Common Practice
She said that she worked in
a number of clubs with AGVA
contracts and in all of them 1t
was part of the house rules for
the girls to mix with the Gus
toners and hustle drinks.
She said she knew that the
union was aware of what went
on in the clubs because she had
overheard conversation between
AGVA business agents and club
managers in which the man
ayers described how the girls
got some of the customers to
spend their money.
Like Mrs. Stein, Miss Gain
sley testified that in Calumet
City the back rooms of the club
were used for prostitution.
The subcommittee heard a
description of how the clubs
cheat the Government out of
taxes from Donald Lear, now
a private accountant who for
merly was an Internal Revenue
Service supervisor in Chicago.
Mr.. Lear testified that in
April, 1859, he investigated the
night clubs in Calumet City
and found that almost all
business was done on a cash
basis. There were no tapes
in the cash registers to record
the sales, he testified, and the
profits from prostitution and
drinks hustled by the girls were
not rung UP on the cash reg
listers.
He said the club managers
explained that they did rot
withhold from the girls sal
aries for taxes or fill out Fed
eral employment forms because
the girls were independent
contractors"
He testified that the book
keepers hired by the clubs to
fill out their tax forms took
the figures that were given
them and could verify nothing.
Since most of the clubs had
union contracts, he said, he
had an agent call Martin
Cavanaugh, the Chicago branch
manager of AGVA, who told
the agent he had nothing to
do with the clubs and thought
it was a big joke" that he
had been called.
Police Chief Linkiewicz, who
was accompanied by Mai.
Joseph w. Nowak of Calumet
City. testified that he had
served as acting chief under
an earlier administration, but
the Mayor removed him on
the grounds that ST was using
Marine tactics to raid these
clubs"
Before Mayor Nowak took
office in May, 1861, and again
appointed him chief, he was
assigned to a parking meter
detail. In the heyday of the
clubs, from 1850 to 1859, he
testified, at least 20 to Is clubs
were operating in Calumet
City. AS of today, he said, only
three clubs remain with exotic
dancers, and they are operating
without liquor licenses.
He said there was no ques-
ton in his mind that proStitu-
ton was going on in the clubs
and that the girls were forced
to mix, to solicit drinks and to
sell sex.
Mayor Nowak, agreeing with