California Racing Board Holding Puente Hearings: Santa Anita Comptroller Gives Evidence on Effect of Revenue, Daily Racing Form, 1948-06-03


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California Racing Board Holding Puente Hearings HearingsSanta Santa Anita Comptroller Gives Evidence on Effect of Revenue RevenueLOS LOS ANGELES Calif June 2 The California Horse Racing Board convened at its downtown offices today to continue the hearing on the question of whether a li ¬ cense should be issued the group wishin to build a major race track at PuentL Chairman Lloyd Wright and commissioners Dwight Murphy and Nion R Tucker were in attendance and the states attorney gen erals office was represented by Kenneth Lynch assistant attorney general generalDuring During the morning session there was but one witness Robert E King comptrol ¬ ler of the Los Angeles Turf Club operators of Santa Anita race track King introduced evidence in a long statement disclosing the probable effects of a third major race track in Southern California on the operation of the other two tracks and upon all person ¬ nel connected with racing and of the effect on revenue accruing to the state of Cali ¬ fornia forniaKing King stated that a reduced schedule would result in a reduction of purses a probable reduction in wage scales paid em ¬ ployes a probable shortening of the period of employment and because of the way the state collects its share of the parimutuel handle the state would stand to lose 300 000 a year at the same rate of business Kings statement was based on the fact that the state collects 4 per cent on the first 10000000 5 per cent on the second 10000000 and 6 per cent on all over 20 000000 Based oh current handles this would cost the state 30000 30000King King went on further to point out that the state now gets all the breakage over 27000000 Under a setup of three tracks instead of two the loss in breakage to the state again based on current business would amount to 200000 Thus between the tax loss of 300000 and the breakage loss of 200000 the state would stand to lose a half million dollars in revenue revenueAttorney Attorney Victor Ford Collins of the Los Angeles Turf Club who introduced King and his evidence was then crossexamined by Fred J Ahearn San Francisco attorney representing the petitioner Ahearn intro ¬ duced some mathematical computations which were stipulated to by Collins name ¬ ly that an additional 8400000 in pari mutuel receipts would be necessary to over ¬ come the halfmillion loss to the state in revenue revenueThe The meeting then got into a discussion of prof its made by the Los Angeles Turf Club since its inception and it was brought out that for an original investment of 1000000 the club has paid 3600000 cash dividends 4000000 in stock dividends and has a surplus of 4272327 It was summed up that for the original million dollar in ¬ vestment the club has jumped to 12 272327 The meeting was then adjourned untiT afternoon

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