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Bloom Victress Over Smoke Screen NASRC Hits Excessive Turf Taxation Reaffirms Stand On Crippling Trend TrendDiscriminatory Discriminatory Measures Effecting Race News Scored By Racing Publicists Reed ReedBy By CHARLES HATTON HATTONBOSTON BOSTON Mass June 10 The National Association of State Racing Commissioners today reaffirmed it is unalterably opposed to the crippling trend in tote tariffs heard Ogden Phipps describe The Jockey Clubs recently organized Jockey Club Foundation Home and Don Reed representing Amer ¬ icas turf publicists voice disapproval of discriminatory measures effecting racing news and other media of public relations These were the highlights of the third and one of the most businesslike days of the four comprising the NASRCs nineteenth annual convention Also during this ses ¬ sion the Horse Breeders Protective Asso ¬ ciations Robert Read deplored the spiral Complete texts of addresses by Rob ¬ ert O Read president of the Horse ¬ mens Benevolent and Protective Asso ¬ ciation and Ogden Phipps Jockey Club steward will be printed in tomorrows ling taxes and recommended a procedure of submitting conidtion books to the horse ¬ men for consideration before they are ap ¬ proved by the commissions commissionsThe The report of the Committee on State Revenues was of particular interest to the large assemblage of turf solons and repre ¬ sentatives of various other organizations within racing for the spiralling taxation has disturbing implications to those in every phase of racing and bloodstock pro ¬ duction This report was presented by Michigans James H Inglis InglisInglis Inglis began by noting that increases in the rate of taxation on parimutuel wagering are continuing in spite of warn warnContinucd Continucd on Page Four OSCAR OBREGON Member of the National Racing Commission of Mexico addressed yesterdays session of the Na ¬ tional Association of State Racing Com ¬ missioners NASRC Committee Report Hits Crippling Trend in Turf Taxes I Discriminatory Measures MeasuresEffecting Effecting Race News Scored By Racing Publicists Reed ReedContinued Continued from Page One Oneings ings from this and other turf bodies that the patience of the long suffering horse players to an excessive takeout is wearing thin thinContinuing Continuing he said saidWe We have apparently failed to get across to state legislators and other public offi ¬ cials the message that a takeout from parimutuel pools of more than 10 or 11 per cent is not only unfair to the patrons but also is unwise and detrimental to the long term health of the sport sportThe The most serious setback came this spring with the decision of Govenor Dewey and the New York legislature to restore the full amount of five per cent ODwyer bite boosting the total takeout in New York from the 14 per cent which prevailed in 1952 to 15 per cent centThe The descending escalator clause in New York ffs also abandoned and there can be no relief from the 15 per cent by just waiting for it itThere There are undoubtedly good reasons for what happened in New York involving local politics and a serious financial crisis in New York City but this isnt the place and there isnt time to analyze these factors here hereYet Yet it should be emphasized that the decision in New York has had and will con ¬ tinue to have serious effects in other states because whether we like it or not many other states look to New York for leader ¬ ship in legislation of this type typeLegislators Legislators Point to New York Florida FloridaThe The task of a racing commissioner in Michigan or Ohio to try to hold the line on horse racing tax rates is made very difficult when the revenuehungry legis ¬ lators can point to the 15 per cent takeout in New York and Florida and a 14 per cent takeout in Illinois all three being im ¬ portant racing states statesJust Just within recent weeks Michigan Ohio and Massachusetts have joined the parade paradeThe The new act in Michigan has not yet been signed but it calls for an increase in the takeout from 11 to 12 per cent for thoroughbred tracks and an increase from 11 to 13 per cent for harness meetings meetingsOhio Ohio has boosted the take out from 10 to 12 per cent and in Massachusetts the increase has been from 12 to 14 per cent centOne One of the unpleasant facts of life in the world of racing is that often the racing associations with their well financed full time lobbyists are able to sell their views to legislators more effectively than are racing commissioners and other friends of the sport sportAdd Add to this unpleasant fact another un ¬ pleasant fact to wit that too often rac ¬ ing associations for their own selfish gain have been willing to use higher parimutuel tax rates as the bait with which to secure larger track commissions or other legisla ¬ tive gains gainsAn An increase in parimutuel tax rates is usually dished up as part of a legislative package which includes gains for the rac ¬ ing associations associationsCites Cites Michigan as Example ExampleIn In Michigan for example the tax rate increase has included as part of a bill which also attempted to unload on thevtax payer more than 100000 worth of audit ¬ ing veterinary work and chemical testing which had previously been paid for by the associations The package also included a provision taking away from the racing commission the power to control price gouging by race track concessionaires concessionairesThe The game of playing Santa Glaus with other peoples money is not a new one and I regret to say that some racing associa ¬ tions have played this game in their legis ¬ lative campaigns campaignsThus Thus we get back to this familiar and disturbing fact of racing racingThis This is the fact that in the power poli ¬ tics of racing between the horsemen the organized employes the racing associations and the financially hardpressed state gov ¬ ernments every element of racing is able to force a larger slice of the pie for him ¬ self except the racing fan the allimpor ¬ tant lover and parton of the sport who in the last analysis is the man who keeps the show on the road roadThe The racetrack customers whom it Is our responsibility to look out for have been getting a smaller and smaller slice of the pie but in spite of dire warnings he has not yet revolted and stayed home in suffi ¬ cient numbers to cause the professionals any serious worry worryThe The total handle and the total tax rev enue to the various states continues to climb year after year yearSince Since 1946 for example the total han ¬ dle has climbed from 1830000000 to 2326000000 last year and state revenues have climbed from 93800000 in 1946 to 142500000 last year yearHow How Much Will Fans Stand StandIt It is hard to say how much longer the racing fans will continue to allow them ¬ selves to be imposed upon uponBut But it would appear to your committee that there is an urgent need for this organ ¬ ization to find out without too much delay the answer to the allimportant question of how much is too much and where and when should the line be drawn to stop further compromises with expediency which have resulted in haphazard and pari mutuel tax rate increases among the sev ¬ eral states statesThere There have been a number of studies made of the effect of increased tax rates on total handle handleUnfortunately Unfortunately none have been made recently and those that have been pub ¬ lished in the past have been made by groups that have been seeking to prove the justification of a position already adopted adoptedIn In conclusion your committee wishes to respectfully suggest that there is a crying need for a new and completely independent survey to establish authoritative answers to these questions 1 What is the maximum takeout that can be exacted consistent with good racing good race track management and a contin ¬ uation of the normal healthy growth of the sport 2 Having answered the first question what is an equitable split of the total take ¬ out between the state and the racing asso ¬ ciations bearing in mind the possibility of a graduated tax rate based upon the amount of thehandle For what it may be worth to the public lets gather the complete facts Revenue Report Well Received ReceivedThen Then backed by solid conclusions of fact lets put the NASRC clearly on record against the efforts of those who would gradually strangle the golden goose gooseThe The report was as you might guess very well received It followed the theme of the position assumed by the revenues commit ¬ tees in earlier conventions conventionsOgden Ogden Phipp s then described to the com ¬ missioners some of the functions of the New York Jockey Club with special refer ¬ ence to its school for racing officials and the Foundation Of the Foundation he said In furtherance of its efforts to im ¬ prove conditions generally The Jockey Club has recently organized the Jockey Club Foundation Home Inc the purpose of which is to take care of the aged and destitute people of racing who may become objects of charity and be dependent upon the cities and states for their very sub ¬ sistence sistenceAs As you may know we have been oper ¬ ating the Jockey Club Foundation for many years and have helped a great many in times of distress caused by accident ill ¬ ness or poverty but only on a temporary basis and not on the larger scale which is now planned by the Home HomeSet Set Goal at 500000 500000The The directors are representatives of nearly all groups in racing each of whom is conscious of the great need for such a project and has pledged his support to its success successA A lot of money will be needed the first year because we must establish a capital fund to acquire a suitable home in a prac ¬ tical location As the years go by we may need more than one such place because our industry extends to all parts of the United States Therefore our goal for such a pur ¬ pose has been set at 500000 500000For For the operating expenses the directors have worked out a program that should perpetuate a sufficient income over the years without distress to any person or group It is hoped that each track opera ¬ ting in the United States will contribute an amount proportionate to its business Simply for the purpose of arriving at a fair contribution it has been suggested that this amount approximate 1 cent for each pro jram sold In addition it is hoped that all ed pony fees will be donated donatedThis This last is rather newsworthy as it had not previously been noted precisely how the directors hoped to implement their eely mosenary program programPhipps Phipps noted that the Jockey Club school for officials has offered its services to all racing commissions and racing associations And that not only members of racing com ¬ missions but their chairmen as well have attended this school There are 23 officials who are alumni of the course and The Jockey Club has had occasion to send them o many localities including Florida Mary ¬ land Delaware Chicago California Mass ¬ achusetts Rhode Island Colorado and Canada Presently six of its regular offi ¬ cials are on loan in various states statesReed Reed Veteran Maryland Newspaperman NewspapermanPresident President Testa the new officers have not been installed introduced Don Reed president of the Turf Publicists of America to the commisisoners Reed is a veteran Maryland newspaperman and publicity di ¬ rector well qualified to represent those who are directly concerned with the turf sports public relations relationsReed Reed heartily denounced discriminatory interference with the dissemination of up totheminute turf news He approached the matter by drawing an analogy which is perfectly fair and points up the absurdi ¬ ties in such action actionHow How would you feel he wondered if you were watching a game during the world series and your television announcer suddenly came on in the the seventh inning and advised you that the remainder of the game would not be telecast until 30 min ¬ utes after it had been completed completedOr Or how would you feel if you were listening to a Notre DameArmy football gante on the radio and the final quarter was withheld for half an hour hourAnd And finally would you be satisfied after seeing or hearing a good fight if you couldnt get the decision decisionIll Ill take the liberty of answering these questions for you Im pretty sure none of you would be very happy about the whole thing and youd probably make a mental reservation that whoever passed regulations which so interfered with your enjoyment must be either crazy 6pr a tyrant Some rabid sports followers probably would im ¬ mediately plan a boycott of the sponsors product productOnly Only Ask Equal Treatment TreatmentYet Yet in racing we are faced with the fact that in some states there are rules and regulations which do to our sport exactly the things which we would think unbear ¬ able for other sports Why Is racing so much below baseball football and boxing in public opinion it is not entitled to the same fair treatment given these sports sportsReed Reed here pointed put that racing is now the No 1 spectator sport in America He noted that baseball is reported inning by inning football yard by yard But that in racing there are places where when a race is run it is kept a deep dark secret for 30 minutes And in other places the broadcasting of races is permitted but after a horse has won the price he paid must not be mentioned over the air Reed said We have no more use for illegal bet ¬ ting operations than you the commission commissionContinucd Continucd on Page Six G Y BOOKER Sends out his sixyear old mare Mad Hare in the Belle Isle Purse at the Detroit Race Course today NASRC Committee Report Hits Crippling Trend in Turf Taxes Discriminatory Measures Effecting Race News Scored By Racing Publicists Reed ReedContinued Continued from Page Four Fourers ers do But we feel that the rules have not accomplished what they were set up to accomplish and instead have hampered racing not only with the public but with the media most used to spread the appeal of racing racingContinuing Continuing in this vein the publicist noted We have already been confronted by a situation in which some radio stations have dropped all racing results because of an inferred hreat by a Federal commission that stations could lose their licenses if they broadcast such results Yet no sta ¬ tion ever has given up baseball fptball boxing or basketball for such a reason reasonMany Many of you commissioners are close enough to the political leaders in your area to drop a word to them whenever you see something harmful to the sport developing It is hoped that you will do just that thatHBPA HBPA President Speaks SpeaksRobert Robert O Read of the HBPA also de ¬ livered a thoughful address First of all he traced the growth and expansion of the HBPA from a membership of 100 in 1941 to its present membership of more than 13000 represented in 17 autonomous geographical divisions And he remarked that since the establishment of the HBPA it has distributed more than 1000000 from its benevolent funds approximately 110000 only last season apart from 60 000 for direct relief in areas struck by dis ¬ astrous stable fires firesRead Read views with alarm the uptrending taxation saying One of the principal problems that concerns the racing industry today is that of constantly increasing tax ¬ ation This is an area in which your mem ¬ bers can perform a real service to racing by appearing before your state legislatures and helping them to develop equitable tax structures Certainly racing should con ¬ tribute and substantially so to the cost of government but I feel that in many juris ¬ dictions conf iscatory taxes are being levied which can only lead to curtailment of its forward progress x xIncrease Increase in Purses Lags LagsI I believe your own committee on study of state revenue stated the problem con ¬ cisely when the report such committee submitted to your San Francisco meeting included in part as far as the thorough ¬ bred industry is concerned there was an increase of approximately 10 per cent in the purses as against the afdresaid 19 per cent in states revenue Meanwhile the cost of training and rearing thoroughbreds has increased greatly as well as the living expenses of the personnel attendant The national prosperity is certainly not re ¬ flected on the backstretch of the race tracks and it seems that purses must tie raised if the horse owner is going to con ¬ tinue to be a patron of the sport Under the present system it is absolutely impos ¬ sible for a stable to break even except in the most fortuitous circumstances circumstancesOur Our association recognizes that the three branches of racing the state the managements and the horsemen are en ¬ titled to a fair and equitable division of the mutuel revenues in our opinion the governmental authority has taken advan ¬ tage of the industry in fostering and en ¬ acting legislation that gives it an unfair share of the commissions and if this trend is not reversed it might well mark the be ¬ ginning of the extinction bf racing as we now know it When legislation of this type is introduced you gentlemen are given the opportunity of speaking out against it in the legislative committee hearings and in the public press I would implore you to do so for we cannot allow further inroads to be made I recognize that many times the person who honored you with your appointment is also the party who is look ¬ ing for new sources of revenue to meet his ever increasing budget but certainly now is the time to call a halt and recognize your responsibility as the guardians of racing in your states statesAsks Asks Condition Books Be Submitted SubmittedTurning Turning to the procedures by which con ¬ dition books are approved Read said An ¬ other suggestion that I would like to make to you one that is now workingquite well in several jurisdictions is that condition bboks be submitted to our purse committees for their examination and criticism before being approved by your commissions It is the contention of some racing associations that if the condition books are released reasonably in advance of the start of a meeting the horsemen are bound thereby even though they have had no opportunity 1 to examine themprior to their issuance issuanceThis This position is untenable for it gives us no opportunity to discuss changes or improvements in a contemplated distribu ¬ tion and further I am sure you will agree that the right that a racing association has to either grant or refuse stall space is a sufficient whip to force the acceptance of unsatisfactory conditions during a meet ¬ ing ingOur Our association unqualifiedly redom mends that this suggestion be adopted na ¬ tionally and we firmly believe that this procedure will be the means of avoiding some of the disputes that in the past have led to interruptions of racing racingOf Of the rising costs to horsemen and disparities between their expenditures and the purse values Read said Our associa ¬ tion has developed a rather comprehensive comparative schedule of the 54 major race tracks in the country and a study of our I findings will disclose glaring variations be ¬ tween the distributions offered We found that some associations are distributing as much as 60 to 65 per cent of their take of the mutuel handle in purses while in other instances such distribution amounted to only 30 to 31 per cent I am sure that you gentlemen would agree with me if you had benefit of the surveys and information with which we worked and you would re ¬ solve as we have resolved that such vari ¬ ations were not only unnecessary but are absolutely inequitable inequitableAffords Affords Humorous Situation SituationIt It is more than a little humorous to be called upon by racing managements as I have been to appear before legislative bodies to oppose unfavorable tax structures and to use the schedules I have mentioned and then to have the same managements fail to properly appreciate the variations in their distributions distributionsWe We all recognize that the operation of a racing stable is an extremely hazardous economic undertaking while to the best of my knowledge the ownership of share cer ¬ tificates in corporations operating the rac ¬ ing plants in many areas are 10 per cent Investments on a highly inflated value when the original purchase price thereof is considered consideredI I do want to point out however that following the lead of the New York tracks tremendous improvement in the distribu ¬ tion schedules is readily noted in the New England area Michigan and Maryland while other areas particularly New Jersey Illinois and California are lagging far be ¬ hind in what we feel is the direction point ¬ ed out by your own committee I recom ¬ mend that you obtain copies of these sta ¬ tistics from our national office we want too have you study them for we feel that such study will lead at least in part to a solution of a problem your committee so ably pointed out outThere There was a hint of the recent unpleas ¬ antness on the west coast in Reads ob ¬ servation In several instances where rac ¬ ing was interrupted threats emanated from fromContinued Continued on Page Forty NASRC Committee Report Reaffirms Opposition to Excessive Turf Taxes Discriminatory Measures Effecting Race News Scored By Racing Publicists Reed ReedContinued Continued from tags Six Sixyour your commissions that our members would have their licenses revoked if racing were not resumed post haste I sincerely rec ¬ ommend that you gentlemen endeavor to determine the merits of any such contro ¬ versy before making such public utter ¬ ances ancesBelieves Believes Percentage Formula Fairest FairestToward Toward the conclusion of his address Read reiterated that the HBP A believes a percentage formula the fairest way to pro ¬ tect the interests of the state the operators and the horsemen And he approved graduated distribution offering better purses for better horses He recommended a study he made of the suggestion that purses be divided among the first five or six horses in a race rather than the cus ¬ tomary four fourJ J A Estes also was heard during the open forum as a representative of the re ¬ activated American Thoroughbred Breeders Association Estes described the origin of the ATBA in 193i when the membership comprised 100 sportsmen and breeders Its membership now somewhat more demo ¬ cratic and less exclusive than at the be ¬ ginning presently numbers about 200 For the most part it has confined its activities to the field of study of diseases in the horse Estes commented adding that however one of the members H P Head ley suggested the 25 per cent advance iq priqe in the claiming rule ruleAdvocates Advocates Filly and Mare Races RacesEstes Estes underlined heavily George Swine broads advocacy of more filly and mare races He noted that New York where the standards of the sport are consistently of the highest offers more races for per ¬ formers of this sex than do tracks in any other state There is a definite continuity between fillies form and their stud rec ¬ ords Estes said good filly races elevate the standards of racing in any area I think probably more of them might well be substituted from some of the super ¬ abundance of claiming races we now have The number of claiming races reflect an appalling lack of resourcefulness on we Americans part when the proportion is compared with that in many other countries They tend to cheapen the sport sportBy By now the session was beginning to near its noon deadline The Association of Rac ¬ ing Chemists was to have been heard along with a report submitted by the stimulation and drugs committee but these speeches were postponed until the final session to ¬ morrow However president Testa did introduce a number of guests represent ing turf organizations in various foreign countries countriesAmong Among these were S Tupper Bigelow chairman of the Ontario Commission who in a brief address praised the film patrol Others presented were Sr Oscar Obregon of the National Racing Commission of Mexico the Jamaica Jockey Club president C C Calder Prof F D White of the Prairie State Racing and Breeders Asso ¬ ciation Sr Angelo Pasquari the official Puerta Rican chemist Sec Dr Pita of the Havana Racing Commission and the Spanish consul They were all unable to say enough for the gracious hospitality of the NASRC Puerta Rico incidentally has applied for affiliate membership in the NASRC NASRCSr Sr Obregon addressed the commissioners briefly saying among other things that no more are there boundaries in racing Through rapid transportation and com ¬ munication other countries are no longer far away Wherever you go to enjoy racing it is not uncommon to see horses jockeys trainers and owners of other lands on the program Mexico is possibly a good example of this thisI I cannot picture racing as localized or j isolated Whether or not we fully realize this point racing is international and will become more so with each passing year yearSomehow Somehow the commissioners and their guests are finding time for diversion They were present at Suffolk this afternoon for the 50000 Massachusetts Handicap And last evening Triangle Publications Inc was host to scores of the visitors at a dinner and dance in the Bradford Hotel This gathering included Hugh Mehorter Thomas Testa Walter Donovan Judge Earl Moyer Spencer Drayton Ed Coffey and in short more than a quorum of U S racings administrators and leaders Tonight they will be dinner guests of the Massachusetts tracks and commission After adjournment in a brief session Thursday morning the commissioners chemists visiting foreign racing authorities and their wives will board special busses for luncheon and dinner at Wenthworth bytheSea in New Hampshire as the guests of the New Hampshire Commission and Rockingham Park
