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TANFORAN OPTION SYSTEM Explanation of How Speculation Is Carried on at California Track. Dels Made on Horse, Not Where Racer may Finis!: Pay Off on Basis of 80 and 20 Per Cent of Pool. Because of the confusion relative to the method of wagering now being used at Tan-foran the following explanation is presented: You do not play a horse to win, place or show, as you do in the pari-mutuels. You simply bet on a horse. If that horse finishes first you receive your share of 80 per cent of the pool. If that horse finishes second you receive your share of 20 per cent of the pool. That is the end of the transaction. There is no share for the third horse. For-example Only options are sold. Suppose Golden Prince wins and Ervast finishes second and supppse 6,000 "options," at 5 each, had been taken. This would be equivalent to a pool of 0,000. Suppose 0,000 of the 0,000 in "options" had been taken on Golden Prince and ,000 on Ervast, the remainder being taken on the other horses in the race. Suppose The tracks commission is put at 10 per cent. Then The first transaction would be the deduction of the commission from the gross, or ,000 from 0,000, leaving 7,000. The second transaction would be the setting aside of the original 0,000 to be returned to the holders of the 2,000 "options" on Golden Prince, and the original ,000 to the holders of the 400 "options" on Ervast, leaving a remainder in the "pool" of 5,000. The third transaction would be the computation of SO per cent of the 5,000, or 2,-000, which is added to the original 0,000, and the gross of 2,000 divided equally between the holders of the 2,000 "options" on Golden Prince. Thus each Golden Prince "option" brings back a gross of 1. Of this is profit. The result is equivalent, therefore, to a winning bet at odds of G to 5. The fourth transaction would be the computation of 20 per cent of the 5,000, or ,000, which is added to the original ,000, and the gross of ,000 divided equally between the holders of the 400 "options" on Ervast. Thus each Ervast "option" brings back a gross of 2.50. Of this .50 is profit. The result is equivalent, therefore, to a winning bet at odds of 3 to 2. On the Tanforan programs the following instructions to the patrons are offered: "Any person in good standing upon turf may buy an option to claim, pursuant to the claiming rules of the association, any horse at the price for which it is entered which price is printed upon the official program. "The only obligation incurred by the association by the sale of such options is to deliver the horse claimed in accordance with the rules of the association." The price on the winner of the first race was listed at ,000, also the second and third were for the same amount. In the fourth, the feature, the price was made ,000. As the owners entered the paddock with their horses each one signed a register. This made them members of the Pacific Coast Breeders Association. The purpose of this was to place the horses under the control of the management for the following race.
