Evening star., 1955-02-02
State Leaders Study
Plan for Merger Of
4 New York Tracks
Special oispateh 10 The Ssar

Special Dispaieh 10 The S,ar
ALBANY. N. Y. Feb. "A
new plan to revitalize horse rae
ing in New York, involving the
merger Of four racing associa-
tions into a single. nonprof1t
operation with improved facili-
ties. has been sent to Gov. Har-
riman and State legislative lead
erS.
Presented by Harry F. Gug-
genheim. a member of The JOG
key Club committee studying the
problem, the plan is markedly
different from the one made
public by the club last Septem-
ber. Guggenheim warned that
unless the program is approved
at the current legislative session,
"the grossly inadequate facilities
at the New York race tracks will
get worse and public patronage
will suffer accordingly"
The new proposal calls for i'm
provements at either Aqueduct
or Jamaica. The old plan pro-
vided for abandonment Of ia
maica. Under the new proposal
$25 million to $50 million would
be spent to modernize three
tracks. whereas the old plan con-
sidered spending only $18 million
for two-Belmont and Saratoga.
Authorization Requested.
Guggenheim's letter requested
authorization by the Legislature
for the move, something the
Jockey Club previously had said
was not needed. 1t further
would require that the State and
units of local government in
volved give the new superasso-
citation the first S. million of
their pari-mutuel revenue. No
such concession was mentioned
before.
In it's prospectus the Jockey
Club emphasized that the State
and local tax share of the pari-
mutuel pool, II per cent, would
not be reduced in order to in
crease the tracks share Of per
cent. Several racing groups had
urged that the tracks take" be
increased to 6 per cent to pro-
vide enough revenue to finance
better facilities for patrons and
perhaps even to build a new
supertrack.
The Jockey Club, a private
group of Sc sportsmen who, for
all practical purposes. regulate
racing throughout the country.
stressed a prediction that the
program ultimately would bene-
fit the State by providing in
creased revenue beyond the
present $50 million a year.
Guggenheim informed Gov.
Hartman that club members
had obtained or had been prom
iSed enough options on the stock
Of Belmont, Saratoga, Aqueduct
and Jamaica to make them con-
fident that a merger of the four
racing associations could be ac-
complished by April l..
The legislation setting up the
new association would authorize
1t to borrow about $50 million
with which to buy out the exist
ing stock of the associations con-
trolling the four tracks. Interest
and amortization of this debt
would be the first charge on all
association income.
An important financial institu-
ton, Guggenheim's letter stated.
has undertaken to take the lead
in lending the money to carry
out the Greater New York Rae
ing Associations financial re-
quirements. providing adequate
legislation is enacted.
Many improvements Due.
The board of trustees of the
new association would hold all
the stock in it, but there would
be no dividends. If the associa-
tions license should expire, title
to all its property would pass
to one or more charitable insti-
tutions designated by the Gov
ernor. Trustees would receive no
salaries, fees or commissions,
except perhaps, the usual di-
rectors' fees" according to the
letter. All revenue of the new
association after expenses, taxes,
debt service and reserves would
be paid to the State as an addi-
tional license fee.
Among the new features that
would be built into the tracks,
primarily at Belmont, would be
broad, overhead shelters without
obstructing posts, more comfort
able seats, a paddock where fans
could see the horses between
races, and more betting windows.
Other Improvements would in
clude paved and drained parking
lots, train service directly to
grandstands. better Jockeys
quarters, escalators and heated
sections of stands.