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1 | i I j « I i , i Reach Agreement In One Pet/ Case Work Out Solution When Commission Modifies Its Stand on Allowable Taxes BALTIMORE, Md.. April 12.— At a meeting held at Pimlico prior to the first race between members of the Maryland State Racing Commission and representatives of this states four major tracks, an amicable solution was worked out to the stand on the 1 per cent "affair" taken yesterday by the commission and which for a time today threatened to bring a stoppage to racing here. Post time for the first race was held up an hour. The commission modified its stand regarding disposition of the one per cent by the associations to permit taking into account possible federal taxation on money accruing from this deduction from the pari-mutuel pools. Under the commissions amended decision "allowance taxes" will be taken into consideration. The commission had ruled that all of the one per cent be deposited into a pool or fund. The commission will have jurisdiction over all money in this pool. The tracks objected to the original ruling. Final Decision Up to Treasury Department A final decision on the tax phase awaits a ruling by the U. S. Treasury Department. This- turn of affairs is agreeable to track operators, according to Henry A. Parr III., president of the Maryland Jockey Club, which is managing this joint undertaking. He announced that the meeting would continue as scheduled. Present at todays meeting were commission members chairman Frank Small, Jr., George P. Mahoney and H. Courtenay Jenifer, while on behalf of the tracks those on hand were Parr and Matt L. Daiger, secretary of the Maryland Jockey Club; Joseph A. Farrell, Alton S. Jump and Harold Boyle, officials of Bowie in the capacity of general manager, treasurer and legal counsel; James Ross, Sr., and Herbert Levy, representing Havre de Grace; Goss L. Stryker, president of the Maryland State Fair, Inc.. operators of Laurel Park, and Maryland states attorney-general. William C. Walsh. BALTIMORE. Md., April 11.— While revoking the one per cent privilege as it originally was granted in 1938, the Maryland Racing Commission late yesterday announced the privilege would be allowed to continue in another form, as a trust fund to be expended for "improvements of racing" under commission supervision. When first instituted the one per cent, a deduction allowed from wagering pools, was supposedly to be used at the discretion of the tracks for its intended purpose. The commission early in February this year asked the tracks for an accounting of the funds so accrued during the years, a sum in excess of ,000,000. Following reports submitted by all four tracks explaining the usage of monies involved, the commission yesterday met to decide whether the associations should be penalized, congratulated or suffer loss of the privilege. The decision to discontinue the franchise in one form and allow it to continue in another, was reached following a conference between the commission and attorney gen-[ eral William C. Walsh. Commission chairman Frank Small, Jr., stated after the meeting, "all of the one per cent additional take shall be kept in a separate fund by each track association as trustee for the Maryland Racing Commission and the commission will later issue specific instructions as to the further disposition of such funds. The disposition of such funds shall be designated by the commission."
