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% 2. Attorney Keleher discussed the status of the litigation with the U.S. Government over the Post Office Ruling, pointing out that the Government was appealing the case and that there would be further litigation. We have since been advised by Mr* keleher that the Federal Court Judge has set a pretrial conference in the matter for September 7, 1965 at 3:00 EM. Mr. Keleher writes under date of May 24: "It is obvious that the Government is going to prosecute this matter to the fullest extent and speaking professionally, they are going about it in the proper manner. In other words, they are attempting to build as much of a record as they can for an eventual appeal. I am confident of the results, but, of course, I personally don't feel this matter should be treated lightly". 3. The financial situation of the Tournament was discussed and is capsuled briefly in the attached statement. There is also attached a list of the expenses for the balance of 1965 for your study. Based on these figures, we request that each hotel advance $2,000; check made pay- able to "International Gin Rummy Tournament", and mailed to the above address. 4. The Tournament Director brought up the matter of prize money, passing on several statments that he had received from players to the effect that they believed all of the entrance fees, less the money actually going to charity, should be given back in cash prizes; and that the hotels should bear the cost of the Tournaments, inasmuch as the players felt the hotels reaped the benefit of greater business brought into the town by the project. It was decided, however, that the present practice of taking some small part of the entrance fees for opera- tional expenses was justified, and this was left for further discussion. 5. The status of the Bank Note was discussed and the present balance disclosed to be $60,088.49. For the record, on this bank note, which was $200,000 principal at 6% interest and due February 16, 1968, we have paid to date $198,455.68 towards the principal and $59,545.73 in interest, for a total of $258,001.41. It was again brought up that the first purpose of the Tournaments should be to pay off the balance of this note