Evening star., 1951-02-17
.bettors Describe
System 10 Cut
Odds
'Come-Bock Money
Operators Testify in
Senate Crime Probe

WO U III y e COilc-UdCk
money" operators described to the
Senate Crime Committee today
how they placed bets at Mary
land and other race tracks to
beat down odds on possible long
shot winners.
The testimony came from Rich
ard Remer of Miami and Fred
Cogan of New Orleans, who said
they placed the bets on orders
of and with money supplied by
Louis Rosenbaum of Cincinnati.
The committee Immediately
called Rosenbaum to the stand
to fill in the gaps on the ac-
tivities OF big time gamblers
and bookmakers in comeback
money" operations, but ran into
some difficulty in getting details
from the witness.
Five. Phones Obtained.
Rosenbaum acknowledged that
he operated as a betting commits
sioner, but he professed to be
ignorant of how five telephones
were obtained for his place Of
operations in Newport, KY, across
the river from Cincinnati, under
the name of the Northern Ken
lucky disqualification Insurance
Agency.
Committee Counsel Downey Rice
brought out that the telephones
were contracted for by a brother
in-law of Rosenbaum shortly after
operations were begun at Newport
last April or May.
You were conducting gambling
operations there?" Senator Tobey,
Republican, of New Hampshire
asked.
Yes" the witness replied. and
then added:
II don't know no hospitaliza-
ton service"
Senator Tobey. describing Ro-
senbaum as one of the country's
"kingpin" gamblers, said he would
know soon since it was a crime
to obtain telephones for gambling
purposes in the name of a char
liable organization.
. Story of Operations.
From the two witnesses. Remer
and Cogan. the committee devel-
oped a fairly complete story Of
some of Rosenbaufn's operations
from the point of view of the
comeback money" Mr.. Rice said
this was a device of bookmakers
and gamblers to depress odds and
balance their books" against pos
sible losses. If the system oper-
ates properly, the counsel ex-
planned, bookmakers come out
ahead regardless of what horse
wins in a race.
Both Remer and Cogan testi-
fled that they were employed by
Rosenbaun to operate at diff
ferent tracks throughout the
country.
Funds Left With Cashier.
Remer testified he received
salary of 500 a week and expenses
which ran from $3.50 to 5000 q
week. Cogan said his pay was
$3.50 a week plus expenses.
Remer was served with the
committees subpoena while op-
Grating at the Bowie (Md0 race
track.
Under questioning by Mr.. Rice.
he acknowledged that at Bowie he
was using the telephone in the
office of the tracw superintendent
to receive orders from Rosenbaum
in Newport. He also testified that
for his betting operations he had
left with the Bowie cashier a fairly
large sum of money, sometimes
ranging from $4,000 to $4,000.
He said he did this so that he
would not have to carry a large
sum with him and run the risk
of being held up.
Senator Tobey demanded to
know if there had been any pay
off-any "greasing of palms"-for
the favors he received at the Bowie
track.
Little Gifts" for Favors.
Remer replied that he made
little gifts" to hose granting him
favorS.
How much did you pay them?"
Senator Tobey asked.
Maybe $20," Remer replied.
Remer said he had worked for
Rosenbaum for two years and had
operated at six tracks, including
(See CRIME, Page A-3)