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Frank Warton, Illinois Board Member, Voices Opposition to Any Tax Increase Asks Gov. Stevenson to Veto* Bill That Would Up Take 7 Per Cent at State Tracks Frank R. Warton, member of the Illinois Racing Board, yesterday made public a letter he had written to Gov. Adlai E. Stevenson, urging the governor to veto a bill he has on his desk calling for an increase of 1 per cent in the mutuel tax at Illinois tracks. Warton said that if the bill becomes law, he feels sure that the "result will be a decline in revenue to the state and the money derived from this source is of great importance to the state." Under terms of the bill, which passed both branches of the legislature, the total mutuel take at Chicago area tracks will be 14 per cent and in counties where the population is less than 250,000 Fairmount Park, 15 per cent. The board member in his letter to Stevenson said, "It is my belief that the present take is too high and if these bills H. B. 1105 and 1106 should pass, the result will be a reduction of revenue to the state of Illinois and will eventually lower our high standards of thoroughbred racing." Stuyvesant Peabody, chairman of the Illinois Racing Board, last week voiced similar sentiments against the bills and urged their defeat. Wartons letter to Governor Stevenson follows : "Dear Governor Stevenson: "As your appointee, I feel deeply responsible to you as a member of the Illinois Racing Board, particularly as I have always been vitally interested in the support and improvement of the highest possible racing standards. "I, therefore, feel that I should call to your attention the important provisions of H. B. 1105 and H. B. 1106 now before your legislature. These bills increase the take by 1 per cent on all monies wagered at race tracks in Illinois. It is my belief that the present "take" is too high, and if these bills should pass, the result will be a reduction of revenue to the State of Illinois and will eventually lower our high standards of thoroughbred racing. "The breeders and the important race horse owners, as well as the leading race courses, feel strongly that any tax above 10 per cent is dangerous to the sport. Further, that 12 per cent should be the maximum take, without causing a serious drop in revenue. "Take, for example, the effect in New York State when a bill was passed in the year 1946 which increased the mutuel take from 10 per cent to 15 per cent. The mutuel handle in New York declined 31 per cent when compared to the average of other leading tracks throughout the United States. This decline continued to a point which showed a decline of 43 per cent, while other tracks decreased a maximum of 18 per cent. This had the effect of increasing the wagering through book makers. Finally a bill was passed by the New York legislature reducing the 15 per cent take at a rate of 1 per cent per annum for five years, thus restoring it to the original take of 10 per cent. I "In the year 1946 the Illinois legislature [increased the take from 10 per cent to 13 per cent. The following figures indicate clearly the result of this action; viz., Total handle in 1946 — 98 million. Following the increase, the handle dropped to 66 million. In 1949 it continued to drop to a figure of 19 million, with the result that the revenue for the State of Illinois declined from a figure of 1 million in 1947 to million in 1949. "Take the case of the State of Kentucky. Churchill Downs and Dade Park increased the take to 14% per cent, the Keeneland race track remained at 11% per cent. The betting at the two first named tracks declined 28 per cent whereas Keeneland declined but 7 per cent. This covers the period from 1945 to 1949. "These facts and my own knowledge of the racing peoples sentiment prompts me to believe that the revenue of the State of Illinois will have a further decline if the "take" is increased from the present 13 per cent to 14 per cent. As you know, the State also participates in the breaks, so that the total "take" would be increased to 15% per cent — a very excessive amount. "The records indicate that present revenues from racing are more than sufficient to finance the undertakings now being requested in the new bills. Over 4 million has been contributed by our race tracks to the Agriculture Premium Fund of the State of Illinois, this fund being used for the, support of County Fairs. The contribution in 1950 to this fund was ,400,000 and this should be duplicated in the current year. "At the end of 1948 there was a balance of million unused in this fund, so that part of the fund was used for General Revenues. For example, in 1934 00,000 was transferred to the General Revenues Fund, | and again in 1937 00,000 was transferred to Blind Relief. In 1949 million was l paid into the General Revenues Fund. In spite of these liberal payments, there was a balance of over ,300,000 in the fund on May 31, 1951. "While this money was used chiefly for Continued on Page Forty Warton, Illinois Board Member, Opposes Racing Tax Increase Continued from Page Five downstate county fairs, the average expenditure for which from the General Fund has been 25,000 per annum since the year 1928, in addition disbursements were made therefrom in an amount of million for permanent improvements to the Illinois State Fairgrounds at Springfield. These improvements, you understand, are nonrecurring items, so it is ap- • parent there would be more than sufficient ■ money with which to support not only the downstate county fairs but also the pro- ■ posed exposition in Chicago. "As you know, a large share of the state revenue from racing goes to pay the Sol- 1 diers Bonus, and this is a most important contribution. Everything, therefore, should • be done for the benefit of safeguarding this 1 revenue. Racing, more than any other i sport enterprise, has made greater contributions out of its own funds, to worthy charities and other civic activities. 1 "The proposed increased take consti- 1 tutes a serious menace. Eventually it will I result in an inferior grade of operation. 1 "I assure you that the Racing Commis- . sion of the State of Illinois is doing its utmost to preserve the fine tradition of the sport and to make it a credit to our great I • ■ ■ 1 • 1 i 1 1 I 1 . I state. I therefore recommend strongly that H. B. 1105 and H. B. 1106 should not be negotiated into a law in the State of Illinois. "Respectively yours, "FRANK R. WARTON. FRWrECS "P. S. I have the necessary documents to substantiate all of the statistical informa-, tion contained in my letter and it is avail- able for your office at any time. "May I also emphasize a point previ- ously made. One of this tax bills greatest benefits would be to illegal bookmakers! It would drive many patrons away froiq the legalized tracks into off-track, illegal betting. In the light of your fight against, such illegal operations, I hope you seriously consider the State of Illinois condoning this effect of H. B. 1105, and H. B. 1106."
