1934

After Nevada legalized gambling in 1931, a faction opposed to the industry fought to have it eradicated.

“A group of Nevada citizens felt there was a growing protest against the injury being done our state by gambling — not only because of the evil done in depriving needy citizens of their depressed earnings without compensation but because our state was being exploited politically and socially and its good name was being smirched by this evil,” reported the Nevada State Journal (July 4, 1934).

With a 24-to-6 vote, the 1933 legislature rejected a proposed anti-gambling law, thereby leaving a vote on the issue to the electorate. The antis generated a petition that, with valid signatures of 10 percent of the population, would get a referendum to repeal the gambling law on the November 1934 general election ballot. Whereas 2,952 names were needed, volunteers from around the state captured 3,027.

Revealing Results

Formal submission of the petition spurred a contingency of businessmen on the other side of the issue to take action, too. They were T.M. Carol, E.W. Craigen, Eugene Ward, Richard Rochl, Will Beckley, Arthur Brick and R.W. Thomas — of Las Vegas — and Ben Rotholtz, Ed O’Brien, J.N. Pedersen, A.C. Pedersen, and Frank Corsiglia — of Reno.

They claimed to represent all those who approved of gambling due to the revenue it generated for the state and argued that legally banning it simply would drive it underground.

They hired attorneys Lester D. Summerfield and Harlan Heward to represent them and investigate the petition’s validity.

Examination of the names revealed that 266 were fake, 47 were duplicates and 13 were illegible. In a number of instances, various signatures bore the same handwriting, and “Mr. and Mrs.” signatures were signed by only one of the two people. These illegitimate entries dropped the total below what was required.

Claiming fraud, Summerfield filed for an injunction in June to stop Nevada Secretary of State William Greathouse from submitting the proposed anti-gambling law to voters. The judge scheduled the trial for late July.

Conceding The Round

A few weeks later though, the anti-gambling faction announced it was standing down but would launch a new effort. It believed it was best to use its funds to circulate a new petition, one that would withstand scrutiny, rather than try to verify the challenged names.

“Opponents of gambling make it clear that they have not abandoned their fight and they express the utmost confidence that the people of Nevada would outlaw gambling if they were able to get the issue before them,” reported the Nevada State Journal (July 4, 1934).

Contrary to what they purported, the next legislative session came and went without the anti-gambling contingent circulating another petition. Today, more than 80 years later, those opposed to gambling in Nevada have failed to overturn the law.

Sources

1953

Theodore “Ted” Donaldson, 31, bought six slot machines from Joe Larango of Pyramid Securities Inc., a company with the devices in several Reno, Nevada locations, including the Oak Room casino. Donaldson paid the $1,825 cost (about $17,000 today) with a check. Each slot was valued at about $900 ($8,000 today).

Larango soon discovered the check was invalid as the account it was written against didn’t exist. Next, he learned that Donaldson had sold three of those purchased gambling machines to a local novelty store owner for $300 ($3,000 today).

Not Having It

Larango pressed charges against Donaldson, who already had a complaint filed against him. That one was for writing a bad $20 check ($185 today) to Lee Miner, owner of Reno’s Midway bar, two months earlier. Bail was set at $2,500 ($23,000 today).

Police officers believed Donaldson had issued at least six fraudulent checks in Reno and Sparks.

On the Larango case, Donaldson was charged with acquiring merchandise under false pretenses, obtaining money via false means and issuing fictitious checks. The judge set bail at $1,300 ($12,000 today).

Strange Proceedings

At the preliminary hearing, Donaldson claimed he thought he’d had enough money in the bank to cover the check to Larango when it was cashed. Yet an employee of his financial institution, the First National Bank, testified at the hearing that Donaldson had opened a checking account with $300 ($3,000 today) several weeks prior to him buying the slots, but the bank manager had closed it when funds had gotten overdrawn.

Donaldson requested a jury trial, which was unusual in that bad check cases rarely advanced to that stage, but one was scheduled.

Then he changed his mind, which was allowed, pleaded guilty and asked for probation. When the state probation officer filed a report on Donaldson for the judge, Harold O. Taber, “the jurist wasn’t impressed with what he saw,” reported the Reno Evening Gazette (Dec. 16, 1953). The document detailed prior arrests and searches for Donaldson and contradicted “his version of his family affairs.”

Denying Donaldson’s request, Taber sentenced him to one to five years in Nevada State Prison.

He was paroled in March 1955 after serving 15 months.

As for the other three slot machines Donaldson had acquired from Larango, he at some point had returned them to the seller, whether voluntarily or by order is unknown.

Sources