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REDUCE SCHUTTES BOND LOUISVILLE, Ky., May 16.— His bond reduced from ,000 to 00 when friends threatened to seek his release under habeas corpus action, Herman Schutte, jockey, was released late yesterday by Frankfort, Ky., authorities, but returns there Thursday for preliminary examination on a charge in connection with the death of jockey Howard Pennington, from injuries received while riding in a car driven by Schutte. Schutte claims Pennington suffered the fatal injuries when his head struck a windshield clamp as Schuttes car was forced off the road by a truck. Schuttes bond was signed by Edward Hayward, trainer of the Peconic Stable. Penningtons body was shipped from Frankfort to Cincinnati, with services at the chapel of Henry Gildehaus company, 1410 Vine street, Wednesday, at 2 p. m.