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Hokitika Guardian, 29 June 1927, Page 2

Tin-: Slate authorities in New South Wales with a view to popularising the tutalisalor, the revenue of which s 1 1 (>.'• - eil a decreasing tendency, framctl new rules, which were introduced in May. The chief amendment to the regulations provided that wherever possible all dividends .shall be calculated so a.s to assure that each investor on a placed horse will receive a return of not less than the unit of investment on which the totalisator is operated, thus ensuring that backers of placed horses will at least receive their money back. Another amendment provided that there shall bo two dividends if there are not less than four, and not more than seven starters, and three dividends if eight or . more starters. The rate of division for a three-dividend race of the amount available for distribution is fixed at 50 per cent, for the first horse, 30 per cent, for the second, and 20 per cent, -for the third. The ratios lor one and two dividend races remained unaltered. The effect of the chief amendment, securing to the investors the return of not loss than the unit of investment, looked attractive on the face ot it. but experience is showing that the scheme is not working out satisfactorily. There was a suggestion to apply the scheme to Now Zealand, and a loading metropolitan club had taken the matter up and was sounding tile other clubs with a view to having the totalisator rules revised in New Zealand. The idea of the altered division of the amount was (n make the money go further, thus ensuring an on"larged turn over. Any investor on a dividend paying horse would not receive less than the pound or ten .shillings invested on ihe machine as before dividing up the amount available from the totalisator. The sum invested on the first and second horses was to he deducted as the nucleus of the dividend to be paid. It- has been found however, that this process cuts down the dividends very substantially and the incentive to speculation is reduced greatly. The scheme which on the face of it promised so well, therefore, appears doomed to failure. The experience of New South Wales is not likely to convert- the New- Zealand Clubs to the system, and the present vogue of totalisator dividends is likel.\ to .stand. All the same, some relief is needed to assist- the Clubs with t.'-e totalisator taxation, which is such a drain on the resources of the investing public. There continues a marked drop in the investments all over Xcw Zealand, and the pressure of the taxation is a contributing cause. The Government proposals are not revealed as yet. but a private measure is being brought forward to afford some re" lief, and its passage through the House will be awaited with interest hv those most directly concerned.