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Stockholders Okay Sale Of MRA Physical Assets Also Sanction by Same 96 Pet. Majority Other Features in Plan DETROIT RACE COURSE, Livonia, Mich., June 21. — Stockholders of the Michigan Racing Association, Inc., in a special meeting today approved the sale of the physical assets of the corporation to Irving Golden Associates. Holders of approximately 96 per cent of the stock approved the sale, with most of the remaining 4 per cent not represented and not voting. The stockholders also approved by the same majority all other features of the plan submitted to them, including: j a The MRA will continue to operate the Detroit Race Course exactly as heretofore, with complete control. b The property will be leased by the MRA from Irving Golden Associates for 20 years, with an option to renew until 1998. Annual rent will be 15 per cent of the purchase price. c "All or a substantial portion of the preferred stock and accumulated dividends will be retired :„nd .paid. d The purchase price to be paid by Irving Golden Associates for the real assets will approximate ,600,000. Directors of the MRA, in a meeting prior to that of the stockholders, unanimously approved the new plan for submission to the stockholders. No objection of any kind was voiced during the discussion period of the stockholder meeting. William T. Markey resigned as a voting trustee and as a member of the board of directors. The vacancy on the board was not filled but H. Allen Campbell of Detroit was elected to replace Markey as voting trustee. Directors of the Michigan Racing Association also approved the following expenditures: a Authorized expenditure of approximately 00,000 to modernize the seven barns which were moved from the Fair Grounds; to make them safer from fire; and to replace the facilities lost during the recent fire. The exact nature of the building plans will be determined later by track management. b Authorized 0,000 in case it is needed to keep the purse for the 1954 Michingan Mile at 0,000. Recent adjustments in purses were made to keep total purses at 48 per cent of the tracks share of the mutuel handle, and in connection with those adjustments 0,000 was reduced for formula purposes from the Michigan Mile. If the final daily mucuel average is 75,000 or less, the 0,000 outside the formula will be added to the Michigan Mile by the MRA. If the handle is above 75,000, the "extra" money will be added to the extent not covered by the regular 48 per cent formula. c Approved the reduction of minimum purses for any race from ,000 to ,800, with the 00 difference to be added to purses for better-grade horses. That the MRA was considering the sale of its physical properties first was disclosed back on June 11, when president Dale Shaffer called the meeting of shareholders, which was held today. The meeting was announced for the express purpose of considering the proposals made by Golden and his associates. One week later, on June 18, Michigan State Racing commissioner James H. Ing-lis took issue with the proposed sale, declaring "There are a number of important questions raised. . . . affecting the future of racing in Michigan, which have not* yet been answered." In a letter to George Haggarty, vice-president of the MRA, Inglis particularly stressed the question of how the MRAs capital improvement program would be affected by the sale, asking: "Is it not likely that, as a tenant, the MRA would be less interested in spending for physical im-provvements than as the owner of the property?" Inglis also cited the fact that a fixed rental charge to be paid by the MRA through the years might adversely affect horsemen and employes in the event of a drop in business in future years. The commissioner added that the proposed buyers had not shown any interest in racing as a sport, whereas most of the current MRA stockholders "have a genuine interest in breeding or horse racing." Haggarty and Shaffer answered Inglis by declaring the MRA would continue to act in good faith and in consideration with proper authorities.
