X n THURSDAY, MARCH 14, 1963 MEDFORD MAIL TRIBUNE, MEDFORD, OREGON
Night Spot Hires Camera Bunny to Pad Expense
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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.)
Vi or Whole
If I I I I 111
We Are Happy To
Introduce This
All New BONELESS
FULLY COOKED HAM
- ABSOLUTELY NO WASTE - FULLY COOKED
BUT STILL HAS THE GOOD OLD FASHIONED
SMOKE FLAVOR.
SAMPLE IT - YOU WILL AGREE IT IS THE
SUPERB HAM. -
CORNED BEEF
Our Own Delicious
Cure
"CHOICE" BONELESS
BRISKETS
Extra Lean-Well
Trimmed of Excess Fat
WE BRAG ABOUT OUR OWN PURE
Pork 49 V 2
lrilllrtrlR Seasoned to
pounds
Please Most
)
FANCY CHOICE EASTERN CORN-FED
BONELESS PORK LOIN ROAST
AND
ALL CENTER LEAN CUT
PORK CHOPS
Sorry We Sold Out So Early
Last Week - We Will Try To !
Have Enouejh This Week
PORK TENDERS . .. . 98c lb.
(J vr
MEDFORD'S FINEST
GROUND BEEF
$
1
iyBG
375
A REAL
TREATII
"Swift's Premium"
CORNISH
HENS
(For Baking
or Broiling)
J m i-ib.
m Each
WE WILL GLADLY MAKE FANCY ,j
CROWN PORK ROASTS ON SPECIAL ORDER U
EXTRA FANCY "CHOICE" AGED
HINfil nilADTFR RFFP(Cutand
...... X wnu Ukhl i
free!
apothecary
IAD when you buy 8 1
Jnl bath size
jj. CAMAY I
ST SHRIMP W
GORTON'S FROZEN
FISH STICKS
GORTON'S FROZEN
BREADED SCALLOPS t . 49c
ii
DASH
ii
DETERGENT
For Automatics
Jumbo Homa laundry Six
Value
4!
DR. ROSS
CAT FOOD
Kidney & Meat
or
liver & Meat
8 a 5a
BETTY CROCKER'S NEW
MACARONI and CHEESE
BETTY CROCKER'S NEW
NOODLES ITALIANO ....
BETTY CROCKER'S NEW
FUDGE-MINT BROWNIE MIX
BETTY CROCKER'S NEW
Butterscotch Squares Mix
"Kraft" or
"Miracle"
Wrapped)
2 rt 89
2 89
2 77
KRAFT'S CRACKER BARREL
CHEDDAR CHEESE
Mild 13tt-ox. Wedge 59c
Sharp l 13'2-or. Wedge 69c
Extra Sharp 13'2-oz. Wedge 79c
2 k 77i
French Dressings 2l49
"-Whole Chicken?:.'" 98
Folgers Coffee 49 97
) v wwi v v " av M i in m M t
Folgers Instant 6o, J,r89(
Sw
Prem
dSMOGADOS
(MANDARIN n. 0
ORANGES H Tin. 2JsC
sbp!e DRINK 1 460, Ii1
P GRAPEFRUIT (f Tins fj
PIECES & STEMS
MUSHROOMS 4 98c
VERMONT MAID
SYRUP (67cValle) 55C
IE: cookies 3,. S1
EXTRA FANCY
MEDIUM SIZE
SWEET JUICY
Fresh Bunches
(Not Cello
Packages)
Green CELERY 2i binThw 2 9
Field
Grown
RHUBARB 3m
ff No. 1 Fancy
Dananas
3 1C
Jj bunches jl
. II t
GOLDEN
VIGORO
WIU NOT BURN
35lb $-595
BAG P
FREE DELIVERY
OF COURSE!
DELIVERY
Phone 773-7444
o o CIH2G& o o
,0
222 West Main Street
NEXT TO POWER COMPANY
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