New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-05
STATE HAS LOST
THOUSANDS IN
BOXING TAXES
Controllers Investigation
Shows Discrepancies in
Clubs Returns.
BOXERS ALSO ARE
BIG SUFFERERS
Vanderbilt, Olympic, Broadway,
Claremont and Garden Clubs
Found at Fault.

Boxers who participate for a per-
centage Of the receipts Of bouts con-
Quoted by boxing clubs licensed by the
State Athletic Commission have not ie.
ceived all the money they were entitled
20, and the state also has had less than
its lawful proportion of the gross reve-
nues
These facts are disclosed in a state
ment issued to-day by State Controller
Eugene NJ. Travis, in which he reviews
the results of an investigation which
he has conducted for some time in New
York City under the direction OF Depu-
ty Controller William Boardman.
The investigation began a few dAys
after the McFarland-Gibbon contest
before the Ocean Athletic Club 40
Brighton Beach on September IL, when
the state received its tax upon an at
tendance Of 26.o92 persons, although
the newspapers estimated the attend.
snce at from $4,000 TO $4,000 and a
count OF the seats made by a repre-
sentative Of the Controller on Septem-
Der 10 showed capacity of 44.s99.
Throughout the month OF October"
says the Controller In his statement.
IAN examiner, usually accompanied by
five assistants, went to various boxing
clubs where bouts were advertised and,
seated az advantageous points in the
halls, used pocket counters on the audi
ence 10 ascertain the attendance.
Az the same time they kept watch
on the employees of the club. who, work.
ing on the floor, were making exchanges
FOR cash from the lower priced seats
20 those of higher price.
The profit TO a dishonest club is not
only the 7ie per cent tax on the value
OF tickets held out, but profit is made
on the boxers as well. IL was apparent
that abuses exist regarding press and
complimentary tickets. Press tickets
were found on sale In the streets In
one instance club with a seating ca
pacity OF 500 and receiving only a few
lines OF notice in the newspapers re-
ported having issued 1923 press tickets"
While the Controllers investigators
were not able 20 trace the proceeds OF
the sales OF such tickets into the treas
ury OF the club, IL Is plain that these
were not all bona fde press tickets,
since the average number of press
tickets issued by the same club prior
to the visit OF the Controllers men was
Twenty-Five to each bout.
According to the examiners report,
the state was underpaid in the month
% October at the bouts which were in
vestigated the sum OF S374.Sl. This
was on 713 per cent basis. As the
percentages Of the boxers usually run
80 per cent 20 the winner and 20 per
cent 10 the loser, their loss was many
times that of the state.
Estimating from this basis. the state
has undoubtedly lost thousands Of dol
lars in taxes. The only watch which
the Athletic Commission has had upon
the revenues has been 20 have an un.
paid inspector at the bouts. who also
was required 90 weigh in the contes-
tants in the back of the hall at the
same time when he should have been
keeping watch on the door.
The aggregate tax paid the state
since the law went into effect, July 26,
1911, up to October l Of this year, was
S144, 1886.
The clubs in New York visited by
tne Investigators were inc NeW roo
Athletic Association, City Athletic
Club, Vanderbilt Athletic Club, Olym-
pic Athletic Club. Broadway Sporting
Club. Astoria Boxing Club. Claremont
Athletic Club. Fsirmont Athletic Club
and the Show Corporation. the latter
conducting the contests at Madison
Square Garden. Two of these, the City
Athletic Club and the Fairmont hth-
letic Club, showed no discrepancies
Frederick A. Wenck, chairman OF the
State Athletic Commission, when asked
to comment on the findings Of the Con-
troller. said:
ave have had an eighty-hve-psgc re
port in the commission for some time,
and ii is no surprise to us-in fact,
for several days I personally worked
with the investigators. Some OF the
recommendation made are good, some
inspired by the commission itself,
while with others we are not in accord.
The commission will consider the en-
tire report when IL meets and take
what action il deems best"
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