The Waterbury Democrat., 1939-08-17

AAAC4At JAoC UAOC6lAU dSoAlloI
 Annenberg, according to insiders, has been getting bigger income than any living being walking on two legs - excepting possibly John D. Rockefeller, ST., during the lush days before the income tax law was passed. Most of this comes from selling racetrack news.
 And before the Annenberg case is finished @ lot of other inter- esting angles may develop. One will be the tremendous profits made by the American Telephone and Telegraph company indirectly from the racetrack business.
 But most important by far will be the inside story of the spread of the racetrack business, now one of the major industries of U. s. A. Moe Annenberg's primary purpose may not have been to nurture this mushroom industry, but 1t remains a fact that without his news service it would not be so easy for the hundreds and thou sands of bookies located far from the racetracks to operate.
 THE HORSES ARE OUT
 To understand the Annenberg racing empire let's get a detailed picture of how it operates.
 Assume the Saratoga track is in full swing. An Annenberg en- ploye watches each race, dictate ing running story to a telegraph operator. Far away in the .2,000 bookie establishments of Chicago and in the 1,500 of New Orleans, and in thousands of others in Detroit, New York, Los Angeles, racetrack fans are watching the Annenberg news service.
 "The horses are out!" comes the flash from Saratoga. It is carried over . telephone circuit simultaneously to the boolkies in all the different cities. A special telephone circuit links the Chi cago bookmaking establishments together, all the Philadelphia bookies together, and 50 on. Annenberg has his own private Opedators, his own switchboard, and runs . private telephone empire.
 $16O,0O0 WEEKLY
 Through this service, the bookie knows the result and track odds or each race as soon as 1t hap pens. He pays from $50 to $l50 weekly for it. The sum is fixed by Annenberg, and the bookie has nothing to say about 1t. An An- nenbeTg agent sits in his establish ment for a few days, estimatts the amount of business coming in, and fixes the rate accordingly. The bookmaker can't protest be- cause Annenberg has a monopoly, and without Annenberg's service, the bookie would have a hard time keeping up with his business.
 Some idea of the size of Annen- berg,s income can be gathered from the fact that Chicago's g. 900 bookies pay an average of $80 weekly. This would make Noes weekly take $l60, 0,000-from the city of chicago alone. Multiply this by all the other cities where racing is a major industry and you can see why Internal Revenue agents have been watching Moe for four years.
 RACE-FIxING
 No charge is made that Annen- berg fixes races. In fact, he re- frains from betting. However, 1t is true that races are fixed today to an extent beyond the public's imagination, and the fast deliv- cry of racing information improves the technique.
 Owners Of racing stables are divided into two classes: those who run their horses to win; and those who run on the money". The former group in- cludes such men as Colonel Bradley and Alfred Vanderbilt, who instruct their trainers al. ways to enter a horse to win. Their betting is on the level.
 The second group. much larger. is known in the bookie world as "the burglars. They run their horses to win when the race is fixed. and when the odds are such that 1t Is profitable for the horse to win.
 Every big bookie knows that
 when three or more of the burglars" have entered horses in . race, the race N fixed. And the horne selected Co win is the horse which psys the biggest money.
 If the fIxers of this race went