The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1924-10-23
Election Bets

Of the Presidential election has be-
come recognized and established in
stitution in Wall Street, and indica-
tions are that this year it will exceed
all records.
Betting commissioners report that
2,0O0, 900 already has been wagered on
the result and that the total probably
will reach $1O,OO0,OO0 before election
night. About 80 per cent of the bets
placed in New York originate in the
metropolitan area, the remainder being
scattered throughout the country.
Inasmuch as members of the various
stock and commodity exchanges are
forbidden to place bets, the bulk of the
business is handled through three OF
four Outside houses" These firms do
not wager their own money, but mere
ly act as Stockholders and bring the
betters together, the charge for their
services being 5 per cent Of the win
nings. a'seEs'sp
So far as is known, the legality of
the practice never has been questioned
and no complaints have ever been reg
istered against these firms. They re-
quire all clients to submit cash, certi-
fed checks or money orders with their
bets except in last minute transactions
with firms or individuals that are we'll
known to them, when the business is
usually done over the telephone.
When the bet has been placed, the
commissioner gives the bettor con-
tract reading somewhat as follows:
"In the event that John Doe is
elected President Of the United States
we promise to pay you $4,000, less
commissions"
This would represent the long end
of bet of $4,000 to $1,000. In the
event that the bettor's candidate won,
he would receive check for $1,000,
which would represent his original de-
posit of $4,000 and his winnings Of
$1,000, minus the per cent commits
sion of his winnings.
The loser in this case would have re-
ceived contract reading, as follows:
"In. the event that John Doe is
not elected President of the United
States we promise to pay you $4,000,
less commissions"
If John Doe has been defeated, the
recipient of this contract would have
received a check for $3.50, which
would have represented the return of
his original deposit Of $1,000 and his
winnings of $4,000, minus the per
cent commission.
Betting commissioners report that
some of the large wagers frequently
represent something more than a gam
bic on the markers political judgment.
Many of them represent hedges against
a speculative position in the stock or
commodity markets that is likely to be
affected by the election. Thus. If a
trader is long of several thousand
shares end there is q possibility Of an
adverse" candidate being elected and
the quoted value of his securities i'm
paired, he will take the short end of a
bet on the adverse candidate in order
to limit his probable losses in the
stock market in the event the candi-
date is elected.
It is tradition in Wall Street that
no candidate wha was ever quoted at
odds of better than 2 to / on the eve
of an election has been defeated. In
fact, rarely has the fayorite in betting
been defeated. In 1916 Charles E.
Hughes was 2 to favorite over
Woodrow Wilson until just before
election day, when the odds shortened
to to on Hughes, the only Presi-
Dental favorite who has failed Of cleo
ton in the last 80 years. In 1920 the
odds on Harding ranged from 2 1-2 to
/, after his nomination. to 10 TO 1 On
the eve of election day.
Betting this year is as complicated
as it was in 1912 when there was a
keen three-corner contest for the Presi-
dency. The commissioners report that
many large wagers are being withheld
pending further indications of the drift
of political sentiment. There was prac-
tically no betting on the outcome of
the Republican National convention
this year, because the nomination Of
President Coolidge was practically a
certainty, the few wagers placed re-
iating to the contest for the vice-presi-
dency. Wagers on the outcome Of the
Democratic National convention were
estimated as high as $4,000, 900, most