New York State Commission to Study, Examine and Investigate State Agencies in Relation to Pari-mutuel Harness Racing

This Commission was created by Executive Order on October 10, 1953 to investigate the operations and management of New York harness racing associations, corporations, and tracks and of the New York State Harness Racing Commission.

The investigation was prompted by the August 28, 1953 murder of Thomas F. Lewis, President of Local 32-E, Building Service Employees International Union, A.F. of L. This union claimed jurisdiction over several hundred employees at Yonkers Raceway. Questionable hiring and other practices were revealed at Yonkers Raceway following Lewis' murder. This, combined with a Nassau County Grand Jury investigation into alleged racketeering and coercive practices of officials of unions claiming jurisdiction over Roosevelt Raceway employees, led Governor Thomas E. Dewey to promulgate the Executive Order appointing this Commission under Section 6 of the Executive Law (Moreland Act).

The Executive Order specifically charged the Commission to study a number of issues including: ownership, concessions, and other financial interests in associations and corporations holding licenses to conduct harness racing meets at which pari-mutuel betting was conducted; whether any existing ownership was not revealed by the books of such associations and corporations; whether any public officer or other person held stock or other interest in such an association, corporation, or track for which he paid no or inadequate consideration; unlawful practices, kickbacks, extortion, or coercion relating to hiring practices at tracks; adequacy of existing laws, practices, and procedures and recommendations for new ones for the supervision of harness tracks; and distribution of pari-mutuel revenues to determine if the share taken by harness racing associations and corporations was excessive.

The Commission sent questionnaires to harness racing licensees, lessors, their officers, directors, and stockholders, and other individuals and corporations with concessions at any harness racing tracks. The questionnaires required detailed, notarized information on the subjects' financial interests in harness racing. The Commission also subpoenaed and examined personal, corporate, banking, and State Harness Racing Commission records; consulted informants and experts; examined witnesses at over 230 executive sessions; examined 86 witnesses during 12 days of public hearings beginning March 1, 1954; and studied harness racing laws and procedures in other states.

In order to secure needed legislation before the 1954 harness racing season began, the Commission made legislative recommendations during the course of its investigation. It also outlined its recommendations in its final report to Governor Dewey on April 30, 1954. Among the numerous recommendations adopted were: placing the State Harness Racing Commission under a single, salaried director instead of three unsalaried commissioners; and increasing the state's share of the split between the state and harness racing tracks of the retained 15% of pari-mutuel revenue.

This Commission was created by Executive Order on October 10, 1953 to investigate the operations and management of New York harness racing associations, corporations, and tracks and of the New York State Harness Racing Commission.

The investigation was prompted by the August 28, 1953 murder of Thomas F. Lewis, President of Local 32-E, Building Service Employees International Union, A.F. of L. This union claimed jurisdiction over several hundred employees at Yonkers Raceway. Questionable hiring and other practices were revealed at Yonkers Raceway following Lewis' murder. This, combined with a Nassau County Grand Jury investigation into alleged racketeering and coercive practices of officials of unions claiming jurisdiction over Roosevelt Raceway employees, led Governor Thomas E. Dewey to promulgate the Executive Order appointing this Commission under Section 6 of the Executive Law (Moreland Act).

The Executive Order specifically charged the Commission to study a number of issues including: ownership, concessions, and other financial interests in associations and corporations holding licenses to conduct harness racing meets at which pari-mutuel betting was conducted; whether any existing ownership was not revealed by the books of such associations and corporations; whether any public officer or other person held stock or other interest in such an association, corporation, or track for which he paid no or inadequate consideration; unlawful practices, kickbacks, extortion, or coercion relating to hiring practices at tracks; adequacy of existing laws, practices, and procedures and recommendations for new ones for the supervision of harness tracks; and distribution of pari-mutuel revenues to determine if the share taken by harness racing associations and corporations was excessive.

The Commission sent questionnaires to harness racing licensees, lessors, their officers, directors, and stockholders, and other individuals and corporations with concessions at any harness racing tracks. The questionnaires required detailed, notarized information on the subjects' financial interests in harness racing. The Commission also subpoenaed and examined personal, corporate, banking, and State Harness Racing Commission records; consulted informants and experts; examined witnesses at over 230 executive sessions; examined 86 witnesses during 12 days of public hearings beginning March 1, 1954; and studied harness racing laws and procedures in other states.

In order to secure needed legislation before the 1954 harness racing season began, the Commission made legislative recommendations during the course of its investigation. It also outlined its recommendations in its final report to Governor Dewey on April 30, 1954. Among the numerous recommendations adopted were: placing the State Harness Racing Commission under a single, salaried director instead of three unsalaried commissioners; and increasing the state's share of the split between the state and harness racing tracks of the retained 15% of pari-mutuel revenue.