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§ 283

Corporations for Breeding Horses L. 1909, ch. 40

running race meetings in each year, and to hold, maintain and conduct trotting or running races at such meetings. At such trotting or running race meetings the corporation, or the owners of horses engaged in such races, or others who are not participants in the race, may contribute purses, prizes, premiums or stakes to be contested for, but no person or persons other than the owner or owners of a horse or horses contesting in a race shall have any pecuniary interest in a purse, prize, premium or stake contested for in such race, or be entitled to or receive any portion thereof after such race is finished, and the whole of such purse, prize, premium or stake shall be allotted in accordance with the terms and conditions of such race. Such meetings shall not be held except during the period extending from the fifteenth day of April to the fifteenth day of November, inclusive, in each year, nor upon any running course for more than forty days, nor upon any trotting course for more than fifteen days, nor upon any steeplechase course for more than five days, within such period. No races are authorized or shall be permitted except during such period nor except between sunrise and sunset.

This section was derived from L. 1895, ch. 570, § 3, as amended by L. 1897, ch. 446, § 1.

Fraudulent entries and practices in contests of speed: see PENAL LAW, 88 1081, 1082.

What constitutes “pecuniary interest” in a prize.- In an action on a contract by the terms of which the plaintiff agreed to train certain horses belonging to the defendant, and to prepare and fit them to be entered in running races to be held in various places under authority of the law, and for such services to receive from the defendant the sum of $100 a month, together with the necessary expenses and costs of the training and maintenance of the horses, and in addition thereto, “ ten per centum of all sums of money or purses which might be won or earned ” by such horses during the continuance of the contract, it was held that the agreement did not violate L. 1897, ch. 446, section 3, from which this section is derived, as it should be construed to the effect that “a part of the plaintiff's compensation was to be a sum of money equal to ten per centum of the prizes earned and received, without, however, conferring any right to or interest in the prizes themselves.” Brien v. Stone, (1903) 82 App. Div. 450, 81 N. Y. S. 597.

§ 283. Certificate of payment of stock. Except as provided in this article, no corporation or association hereafter organized under this article or heretofore organized in pursuance of law for any purpose authorized by this article, shall have any of the powers conferred by section two hundred and eighty-two hereof until it shall have filed in the office or offices where its certificate of incorporation was filed, a further certificate stating that its

L. 1909, cha 40

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capital stock has been fully paid in in cash, and if claiming the right to conduct running race meetings, that it actually maintains a race track of not less than one mile in length or circumference, the location of which shall be specified in such certificate. If such corporation or association was organized after the first day of February, nineteen hundred and two, and it claims the right to conduct running race meetings, the certificate must also have indorsed thereon, or annexed thereto, the approval of the state racing commission. Such certificate shall be executed and acknowledged by its president or vice-president and its treasurer or secretary, and verified by them to the effect that the statements contained in it are true. In the case of racing courses to be used for running races or steeplechases, a license from the state racing commission must also be obtained in the manner hereinafter provided, and such license be filed with such certificate.

This section was derived from L. 1895, ch. 570, § 4, as amended by L. 1902, ch. 257, § 2.

§ 284. Additional certificates by existing corporations. Any corporation heretofore or hereafter formed under the laws of this state for raising, breeding or improving the breed of horses, or formed or entitled to the benefits or privileges of an act, entitled "An act for the incorporation of associations for the improvement of the breed of horses and to regulate the same and to establish a state racing commission," upon filing a certificate that its capital stock has been fully paid in in cash or property in accordance with the provisions of the law in force at the time of issuance thereof, shall be deemed to have complied with the requirement of any statute or statutes of this state, providing for the filing of a certificate that the capital stock of such corporation has been fully paid in in cash, or requiring the filing of such certificate as one of the conditions upon which any rights or privileges may be obtained under or pursuant to such statute or statutes.

2. Such corporation, its officers, directors and trustees, shall be subject to all other provisions of such statute or statutes, and, subject to the conditions and restrictions thereof, shall be entitled to obtain and enjoy all the benefits and privileges thereof with the same force and effect as if such corporation were created by or pursuant to the provisions of such statute or statutes.

This section was derived from L. 1895, ch. 573, 88 1, 2.

§ 285

Corporations for Breeding Horses

L. 1909, ch. 40

§ 285. State racing commission. There shall hereafter be a state racing commission, consisting of three persons, to be appointed by the governor, and who shall hold office for the term of five years, no two of whom shall be members of the same racing association. They shall receive no compensation for their services but shall be paid their necessary traveling and other expenses. Such commission shall appoint a secretary, who shall serve during their pleasure, whose duty it shall be to keep a full and faithful record of the proceedings of such commission, preserve at the general office of such commission all books, maps, documents and papers intrusted to his care, prepare for service such papers and notices as may be required of him by the commission, and perform such other duties as the commission may prescribe. He shall have the power, under the direction of the commission, to issue subpoenas for witnesses and to administer oaths in all cases pertaining to the duties of his office. The total annual expenses of the state racing commission, including the salary of the secretary, shall not exceed the sum of five thousand dollars. Such expenses shall be paid by the several racing or steeplechase corporations or associations, owning or operating such race tracks, to be apportioned by the comptroller, who shall, on or before the first day of December in each year, assess upon each of such corporations or associations its just proportion of such expenses, and such assessment shall be collected in the manner provided by law for the collection of taxes upon corporations. Such commission shall annually make a full report to the legislature of its proceedings for the year ending with the first day of the preceding December, and such suggestions and recommendations as it shall deem desirable.

This section was derived from L. 1895, ch. 570, § 5, as amended by L. 1896, ch. 380, § 1.

Purpose of section.— Speaking of the purpose of L. 1895, ch. 573, authorizing the incorporation of associations for improving the breed of horses, Woodward, J., said: “ Its primary object was not to form associations for the improvement of the breed of horses in the sense that that term would be ordinarily employed, but was to permit of forming associations for the purpose of conducting race meetings under the provisions of section 3 and those following it, it being assumed that the interest thus maintained in finely bred horses would produce the contemplated improvement in the breed of horses. It was not to organize breeding associations - these could have been formed under the general laws quite as well — but it was to promote the creation of racing associations, for the indirect encouragement of high breeding, and it is not to be presumed that an act of legislation, exciting the discussion which this measure brought forth in the public press at the tima,

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was designed to be inoperative at the caprice of three commissioners, or that it was intended to vest in such commissioners an arbitrary power to promote or ruin any of these creations in the State.” People v. State Racing Com., (1907) 120 App. Div. 484, 105 N. Y. S. 528, affirmed (1907) 190 N. Y. 31, 82 N. E. 723. “ It is the purpose and policy of the State to control and regulate the business of racing and to invest the association which shall so engage therein with quasi public functions, the State exercising control and supervision by means of a commission, and in certain respects through other officers of the State." Grannan v. Westchester Racing Ass'n, (1897) 16 App: Div. 8, 44 N. Y. S. 790, reversed on other grounds (1897) 153 N. Y. 449, 47 N. E. 896.

§ 286. License for running races and steeplechases. Any corporation or association desiring to obtain the benefits of the provisions of section two hundred and eighty-two of this article, if proposing to conduct a race-course or race meeting for running races or steeplechases, may annually apply to the state racing commission for a license to conduct running races and race meetings or steeplechases and steeplechase meetings, as the case may be. If, in the judgment of such commission a proper case for the issuance of such license is shown, it may grant such license, for a term of one year. Every such license shall contain a condition that all running races or race meetings conducted thereunder shall be subject to the reasonable rules and regulations, from time to time prescribed by the Jockey club, a corporation organized under the laws of the state of New York, and that all steeplechase meetings or steeplechases shall be subject to the reasonable rules and regulations from time to time prescribed by the National steeplechase association, a corporation organized under the laws of the state of New York. Any rule or regulation of such Jockey club or National steeplechase association may be modified or abrogated by the state racing commission, on giving such Jockey club or National steeplechase association an opportunity to be heard.

This section was derived from L. 1895, ch. 570, 8 6.

Purpose of section.—“ The object of the statute vesting authority in the commission, was to insure that racing in this state was properly and honestly conducted, not to prevent competition between the several racing associations, nor to secure any special pecuniary benefit to any of them. There is no provision in the statute authorizing the commission to allot particular dates on which races on the various tracks may be run, but merely to grant or refuse a license to hold races.” People v. State Racing Com., (1907) 190 N. Y. 31, 82 N. E. 723, affirming 120 App. Div. 484, 105 N. Y. S. 528.

Mandamus to compel issuance of license.- Mandamus will lie to compel the state racing commission to issue a license to conduct races, when the refusal to grant such license was on grounds which must be considered capricious and arbitrary. People v. State Racing Com., (1907) 190 N. Y. 31, 82 N. E. 723, affirming 120 App. Div. 484, 105 N. Y. S. 528.

88 287, 288

Corporations for Breeding Horses

L. 1909, cha 40

Power to enforce obedience to rules. The decision of the Jockey Club ruling a person off the turf for his disobedience of its reasonable rules and regulations, justified the Westchester Racing Association, a corporation organized under this article, in excluding him from its grounds when races open to the public generally were being held, although he at tim endered compliance with and expressed a willingness in the future to conform to the rules and regulations of the association, including those of the jockey club. Grannan v. Westchester Racing Ass'n, (1897). 153 N. Y. 449, 47 N. E. 896, reversing 16 App. Div. 8, 44 N. Y. S. 790.

Legality of sweepstakes.- In Dudley v. Flushing Jockey Club, (1895) 14 Misc. 58, 35 N. Y. S. 245, Bischoff, J., speaking of L. 1895, ch. 570, said, “that this statute, in so far as it authorizes and allows a recovery for 'sweepstakes' won upon a horse race, contravenes the constitutional inhibition against the authorization of any kind of gambling' is self-evident.”

§ 287. Revocation of licenses. If any corporation or association to which a license shall be granted shall fail or refuse to comply with the provisions of this article, or with the terms and conditions of its license, or if for any other reason the continuance of such license shall not be deemed conducive to the interests of legitimate racing, the said commission, upon the complaint of the said Jockey club, in the case of race-courses to be used for running races, or upon the complaint of the said National steeplechase association, in the case of race-courses to be used for steeplechases, shall have the power to cancel and revoke such license. Written notice of such complaint shall be given to such corporation or association by said state racing commission within five days after receiving such complaint, which notice shall specify a time and place of hearing thereon. If the commission cancels and revokes such license all powers exercised under section two hundred and eighty-two of this article by the corporation or association to which such license was granted shall cease and determine.

This section was derived from L. 1895, ch. 570, $ 7.

Nature of power to revoke license.— By this section “the power to revoke a license is carefully limited, and the statute clearly contemplates a quasijudicial trial, after a complaint on the part of the jockey club or the steeplechase association, before the corporation may be deprived of its rights under ” section 282. People v. State Racing Coin., (1907) 120 App. Div. 484, 105 N. Y. S. 528, affirmed (1907) 190 N. Y. 31, 82 N. E. 723.

Meaning of term “legitimate.”—“ The term legitimate' here is evidently used in its broad, not technical sense, and means 'good' or 'proper' and not merely 'lawful.'People v. State Racing Com., (1908) 57 Misc. 331, 103 N. Y. S. 955.

§ 288. Trotting and fair associations, when entitled to privileges. Any trotting association, incorporated under the laws

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