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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (March 14, 1963)
X n THURSDAY, MARCH 14, 1963 MEDFORD MAIL TRIBUNE, MEDFORD, OREGON Night Spot Hires Camera Bunny to Pad Expense Mi 1 - u IHni iiliirtfifcini ii i mmmmmm mn i n iwiiiimniinwiM Mw m ENJOY NEW FEATURE John Blewald (L) vice president of the Chicago- Tabulating Service, and Ronald Muellner, assistant pro duction manager of the same organization, enjoys the added service offered by Lynne ' Larson. She is taking pictures at the 71 Club to be used for verification of expense ac count entertaining as called for in new rule of the Internal Revenue Service. (UPI) By GERALD S. SNYDER United PrM International A cafe in Chicago has three tape recorders- on- hand 'to take down the conversation of , its customers, if requested. ' Another restaurant in - the windy city is thinking abo .t hiring a shorthand steno grapher for the same purpose. And in New York, a posh night Fpot boasts a "camera bunny'" to take "you-were-thcre" pictures. The reason? Taxes! Last November, the Inter nal Revenue . service . laid down a strict new expense ac count rule calling for. a iull accounting of the time, the place,- the purpose and the business relationship on all expenso account . deductions. Not since the days of World War II, when the federal gov ernment slapped a 20 per cent tax on all amusement spend ing, has the food-and-drink in dustry complained so bitter ly. Since January 1, when the new regulation went into ef fect, the reaction could be summed up In the words of one cater owner in Washing ton, D. C. .. fc '.'It's a .stinking law! . Jn'clly after, city, hotels, night clubs, restaurants and almost every type of busi ness involved in entertain ment claim the new regula tion is cutting business by as much as IS to 30 per cent. From the corner of a nicht club on Hollywood's Sunset strip: "The little guy is afraid to use his credit card now." A restaurant manager in the nation's capital says: "The regulations have scared cu tomcrs. They are agraid to go out and cat." "It will have a serious ef fect' on" conventions," says a New Orleans hotel man. "Those men who took large I suites for 'itcrtaining, just won't do it any more." The IRS, which promises a more complete interpretation of the regulation later this month, says it is out to elim inate chiseling by doing away with deductions on the basis of mere approximate .1 - as had been done in the past for business travel, entertainment and gifts. "We want to see the ele ments of an expenditure," ex plained one IRS official. Many business executives are turning to the credit card to satisfy this requirement. The diner's club, the largest of the credit card companies, has revised its forms to make them available for IRS ac counting. The club claims re quests for new membership are up 40 per cent over the same period last, year - ap parently because of the in- creased need for expense spending documentation. In six key areas checked in a UPI survey, this was the general feeling . Los Angeles - Hollywood area-"The cure is worse than the disease,", said Ccne Nor man, owner of the Crescendo and Interlude club on the Sunset Strip and president of the 70 - member Associated Night Clubs of America. "The expense account sit uation has vitally affected our business. The government will lose more money in cab. arct and concomitant taxes such as employe income taxes than it will gain by the rul ing. - "It is my considered opin ion, however, that people will acclimate themselves to the ruling. It's a temporary prob lem. People are not going to stop going out forever. They will start going out again in a few months. ' The Cocoanur. Grove in the Ambassador hotel said it was hurting. "There is a resent ment on the part of the pub lic," said one of the execu tives. "It's been hurting busi ness for at least six months ever since the president be gan talking about what he was going to do. I don't think the bottom dropped out of things in January just be cause of this regulation." New Orleans - "This thine is worrying a lot of people," said a top public relations man. "If we take a man and his wife out, we don't think we can claim his wife's meal or our wives' meals. We must talk business to claim i' and you don't usually want to talk business on such an oc casion, . . 7 You're sure of Tvom rezauers wno feature known brands ,rT it ArKJf. m ... - h. iu4 TrV. Retailnhi' krioV you're iur of Mti-' faction with known brand because you'll get the quality yeu evct.- Brand Names are built on your con fidence. You and yourneighboradicrate the standard! a Brand Name product mutt meet to consistently dfbver the. value and service you want. A roapectcd Brand Name . is a . roanui , facturer'a moat valuable asset and ha pares noeffort to protect it by constant ly testing and bettering his product. A Brand Name is the maker' guarantee of satisfaction doubly tndorscd by the retailer who sells it. For dependable quality and consistent satisfaction you will do better with the brands you know; Ret to know those you see advertised in this newspaper. To get the most for your money buy by Brand Name and be sun! CONFIDENCE BRAND NAMES SATI S IFACTlONy A Brand Name is a maker's reputation BRAND NAMES FOUNDATION. INC, OI.nrTH AVtNUR, KEW.YOIIK IS, N V, 'We have to list their names, title, relationship to us, the business benefit we derive. It's a real problem." A hotel manager added: "We don't need as many wait ers in our entertainment rooms. It's added to our book keeping expense, too. The only thing we can do is plead with Caplin (IRS commis sioner Mortimer M.) to put a little more liberal interpre tation in the law." Chicago-Most major hotels and restaurants polled felt the new deduction rules were Account Report having some effect on their business. Lawrence C. Buckmastcr, executive director of the Chi cago and Illinois F.estaurant Association, estimated that alarm over the new rules cost Chicago area dining . and drinking spots over SI million in January and cut restaurant business throughout the state by 10 per cent. A spokesman for the Hilton Hotels Corp., however, said: "Frankly, we've noticed little difference so far." But he added "It's really too early to tell." New York - "Business here is off 25 to 30 per cent," said Stork Club Owner Sherman Billingsley. "The bett places are all way off ex cept for those places where you can eat for $1. Everyone is disturbed and upset. "I think that management is going to absorb the differ ence. Prices will go up a little or the quality of the food will go down. Instead of filet mignon and sweet breads, they'll go into pork chops, Irish stew and spaghet ti. That's what you'll see on the menu in all first class and medium class restaurants." In -general, Billingsley claimed, restaurants ar" night clubs did their worst sinesS in 30 years in January. Said Victor Lownes 111, president of the New York Playboy Club: "A lot of peo ple, it seems are not fa liliar with the fact that they are allowed to spend up to $25 and deduct the expense on the same basis as they have in the past - without a de tailed explanation." An executive for a chain of restaurants in New York, New Jersey and Connecticut said: "It's not the IRS enter tainment deduction rules themselves that have had an effect on business - it's that people don't know what the rules are." Florida - This stale is en Joying what might be its most lucrative tourist season de spite the new IRS regulations. The general feeling seems to be that the "crackdown" will pinch some, but not much. II MEDFORD'S FINEST MEATS SINCE 1940 I ram IN THE " ' iifl'flayo-shape (8 to 9 lbs.) 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