B. Seebohm Rowntree

By John Hawke

Growth of Betting

The most disquieting feature in the consideration of the state of the country with regard to this habit is its spread among the wage-earning classes. By them it was little practised when it first became systematic in connection with horse-racing among people of better means. Groups of the latter class lost money and fortunes long before the fashion took any general hold of very considerable numbers of the aristocratic and wealthy classes. Betting took place principally at the race meetings. There were grand-stands upon some of the race-courses many years before the close of the eighteenth century, probably the largest being the one at Doncaster, erected in 1779 at a cost of £7000. It was not until ten years later that a regular market for credit betting was established by the institution of Tattersall’s Subscription Rooms; and, that the original purpose of the grand-stand was only for viewing the races, is made clear by the contemporary records. At Ascot Heath, a separate wooden shed had to be used by those who wished to bet. Even as late as 1833, although the Epsom stand was the largest in Europe, the betting market was kept away elsewhere, upon the hill. Six years later, complaints having been made of the betting market being held in the grand-stand at Doncaster, to the annoyance of the spectators, especially ladies, arrangements were decided upon for the future to form an enclosure for betting outside the stand. Similar precautions had previously been taken at Goodwood. Betting was transacted at Newmarket at betting posts, where rings were formed on the heath. Betting was also carried on away from the courses at premises belonging to Tattersall’s in London (which, however, in 1839 consisted merely of a small apartment, with only 300 members on the books), and in the vicinity of the course at the Newmarket Subscription Rooms, where there were only 57 members, other than those belonging to the Jockey Club. There were also special rooms hired at Doncaster, York, and Liverpool for members of either of the above clubs to bet in. A chronicle informs us, in the reign of William the Fourth, that although the number of spectators at Newmarket seldom exceeded 500, mostly of the highest classes, the majority on horseback, the turf was becoming more popular in 1836 and the attendances larger.

It will thus be understood that the general public, for a long time entirely excluded from the privileged betting circle, could only take part in the business by the connivance of some of the professional men having the entrÉe. In 1849, however, the Newmarket authorities, seeing the feasibility of largely adding to their funds, arranged that a small subscription should confer temporary membership of the Newmarket Rooms. This caused many complaints by the old habituÉs, and it was found necessary, in view of the dubious standing of some of the new-comers, to modify the credit system, and to insist upon daily settlements. The cash gaming of the race-course indulged in by the great bulk of race-goers was not betting, but was carried on by means of roulette-tables, lotteries, sweepstakes, and other adjuncts of the gambling-booth. The Select Committee of the House of Commons (1844), in reporting against the miscellaneous race-course gambling, clearly did not anticipate that the grand-stands and enclosures would take the place of these other methods, and become sources of great profit as places used for gambling by betting, and that the abolition of booths would merely result in the transfer of the gamblers to the enclosures or rings, as may be seen by the following paragraph from their report:—

Your Committee cannot consider the establishment of gambling-booths on race-courses as in any way an essential accompaniment to racing, and they feel that they cannot too strongly express their opinion that all such practices ought to be entirely and universally discontinued. If there is in any place a real demand for races, money enough is sure to be subscribed for plates and stakes to be run for, and if at any place sufficient sums for these purposes cannot be raised without the aid of gambling-booth rents, the races at such places had much better be left off.

Sixty years have gone by, and race-course proprietors acknowledge that the loss of the present gambling-ring rents, or entrance fees, would put a stop to three-fourths of the race meetings in the kingdom.

Legislative enactments followed the Parliamentary Reports, and to a great extent swept away the miscellaneous gambling, which was only to make way, unhappily, for the more subtle form of turf betting. For years before the middle of the nineteenth century, many of the proprietors of public-houses (or persons in collusion with them), and of specially hired offices in the great towns, had been in the habit of using their premises for the purpose of accepting betting money, and, after a time, relations were established between them and some of the credit-betting professionals belonging to the clubs and subscription rooms. This was how betting by those away from the race-course continued, and even increased in volume, notwithstanding the effect of the Betting House Act in 1853, which, immediate as it was with regard to these betting offices, was partially neutralised by the change of location brought about when the new railways were beginning to convey large numbers at a moderate expense to the course, and by the laying on of the telegraph offering the means to others of rapid communication with the betting men at the race meetings, for gambling purposes, by those unable to make the journey.

The time was one of transition, and legislators appear to have overlooked the fact that the miscellaneous booth gambling having been previously suppressed, their enactment putting an end to ready-money betting establishments, then chiefly in towns, would only result in their virtual transfer to every race-course and so-called club. There had been a great deal of irregular and surreptitious cash betting upon the race-course, but it was not a generally recognised system. It was one that had gradually grown. The bookmaker with a satchel taking money in advance and giving tickets, was unknown on our race-courses in the forties. Later on it was particularly recorded that at the Chester Cup race of 1852, one large bookmaker took a great many £5 notes, and the practice was then coming into fashion. It was, however, to laxity in applying the law that the ready-money, or deposit, system owed its subsequent continuation and increase in volume, for there is no doubt whatever that the Act of 1853 was considered at that time to apply to the evil in race-course enclosures as elsewhere. A recognised contemporary authority wrote: “The fatal facility induced by the open deposit system is nipped in the bud”; and another, “Cash betting stopped upon the passing of the Act.” The temptation, however, to race managers to wink at wholesale infraction of the law was very great. Entrance fees to the enclosures promised to become their financial backbone, and to enable them to add enormously to the value of the stakes and cups. And it was found that to permit ready-money betting was to turn a few score of entrance fees to the rings into thousands. That the practice was even many years afterwards considered illegitimate is shown by the Jockey Club notice in the Racing Calendar of July 23, 1874, and the official notice at Goodwood by the Duke of Richmond, “No ready-money betting will be allowed upon any part of the course or park,” in the Calendar of the same date.

An Account of the Present Increase

Betting

It is not necessary to follow in any detail, beyond this period, the growth of horse-racing, and the practice of betting connected with it which had now become a national foible. The foregoing sketch was desirable for the understanding of the subject, owing to the absence of any other authentic continuous record, and by the fact that the masses of the nation had not become a gambling people as compared with foreign populations, either in other ways or in this, until long after the introduction of the sport. The above review of the past takes us up to the year mentioned (1874), when the failure of a prosecution, owing to the interest or prejudice of the Newmarket magistrates, for permitting ready-money betting in the rings, finally opened the flood-gates of the system, which now, aided by railway, telegraph, and press, spread over the country in an ever-increasing volume, and from tens of thousands of sources in city, town, and village drew its main increment from the money-making and wage-earning classes. Hardly any portion of the country, any section of the population, was free from the blight. The bookmakers multiplied. The wealthy and the idle squandered fortunes on them; the toilers brought their sovereigns and half-crowns in myriads. A large portion of the press battened upon the advertisements of prosperous betting men. Servants of the state in high legal positions, devotees of the race-course, and others of subordinate station, gave decisions as to the construction of the law so framed as to put no check upon the spread of professional betting; and horse-racing became a trade instead of a sport. The enormous money interests honeycombed it with dishonesty. Sometimes owners, and more often trainers, jockeys, touts, and betting men, arranged which horse should win, according to the exigencies of the betting market; and, not unfrequently, poison played its part when it was necessary, from the trade point of view, to prevent an animal from first passing the winning-post. The very atmosphere of the turf was pestiferous; it corrupted everything of it and connected with it. The pretence that it was any longer a noble sport was only countenanced by the fashion of titled people patronising it. The ancient plea as to its improving the breed of horses became a byword as the number of yearling races increased and the length of the courses was reduced. The pregnant sentence in the Report of the old Committee (1844) of the House of Lords was forgotten: “The Committee would consider the advantages of horse-racing more than problematical if they were to be unavoidably purchased by excessive gambling and the vice and misery which it entails.” The streams of small bets swelled into rivers, and the rivers filled an ocean swamping the land. The twenty or so bookmakers of the beginning of the century grew into an army of twenty thousand. Many made fortunes; nearly all made a living. Those who confined their operations to the race-courses might be said to do less harm than those who offered facilities away from the course, only that they usually acted in relation to these latter as the wholesale dealer does for the retailer. One of these retail men who was not given to boasting (Chambers’s Journal, 1898) admitted that his business had a turnover of £250,000. It must be remembered that the individuals in the streets are merely the journeymen of well-to-do bookmakers. During last year, amongst the many thousands of fines for the offence, evidence was given—and there are scores of similar cases—that a lad of 16 was one of several servants of a master bookmaker, who mapped out the district amongst his subordinates.

From unofficial but perfectly reliable sources, hundreds of items of information quite as striking as the above could be given, but they are unnecessary in view of the statements of officials and others made before the Select Committee of the House of Lords (1901-2). Briefly summarised, the evidence showed that the practice of betting had grown to such an extent amongst the working classes that it was quite commonly carried on in factories and workshops by agents of the bookmakers, and outside of them by the street betting men. In speaking of the former method, one of many testimonies was given by the Lord Provost of Glasgow, who said that betting was carried on to an enormous extent in the great workshops there; while an idea of the latter can be obtained from Police Superintendent Shannon’s statement that in Lambeth alone 441 persons had been proceeded against in the previous year, the fines amounting to £2000. The evidence proved also that it was not confined to men, but had spread to women and children; that it caused the neglect of wives and children, disregard for parents, and carelessness and indifference in their occupations, frequently resulting in embezzlement from their employers; that this professional betting was largely responsible for corrupting the police, for turning athletic sports into a trade, and for a general neglect of duty amongst those who indulged in it; that all efforts to cope with it under the existing law had failed to restrict it to any extent, including those of the trade unions, some of which exclude from official positions any one known to be given to betting. Excepting those witnesses who in some way, direct or indirect, were interested in the professional betting business, there was a volume of convincing testimony as to its baneful effects. A former prison chaplain, through whose hands in ten years a hundred thousand persons had passed, said that in one jail a whole wing had been set aside for prisoners in connection with betting, which was now increasing more than ever. Several years subsequently to this a carefully kept unofficial register for Great Britain (which is probably a very imperfect one in the sense of much understating the numbers from the difficulty of compiling a comprehensive list by private effort) showed that in the previous five and a half years no less than 80 cases of suicide, 321 embezzlements, and 191 bankruptcies had appeared upon the records of the Courts owing to professional betting, and it must be pointed out that probably not nearly all the embezzlements resulted in prosecution. The Mayor of Salford, for instance, told an influential meeting at Manchester that he was responsible for the conduct of a large business in which several cases of embezzlements had been discovered, but that in no instance had a prosecution taken place. A continuation of these statistics for the three following years, as quoted by the Archbishop of Canterbury in the House of Lords on May 3, 1904, adds to the significance of the figures by revealing that not only has the evil gone on, but that the embezzlements have increased at the rate of 40 per cent. With regard to the allegation that betting was often pleaded as an untruthful excuse in the Police Courts, the senior Metropolitan Magistrate, who spoke with twenty-five years’ experience, and others averred that this statement had been investigated, and proved to have very little foundation; in the very great majority of cases the magistrates having come to the conclusion that betting was at the root of embezzlements.

Evil consequences, unfortunately, are by no means confined to these immediate victims. Testimony as to the corruption of the police, rendered possible by the large profits of the bookmakers, and the great proportion of defaulting Post Office employees owing their ruin to the betting system, seriously supplemented the main evidence. And the inquiries since set on foot at New Scotland Yard with regard to the Metropolitan Police give a pointed significance to the revelations made. The gigantic monetary interest of the Post Office in the betting system appears in one item of the evidence of Mr. Lamb, the secretary, who said that in the previous September the department had sent 82 telegraphists to the Doncaster race meeting, who dealt with 30,000 private telegrams of persons attending the races, besides 184,000 words of racing news for the press.

Betting used to be chiefly confined to the large centres of population, but almost every town and village is now infected. A Chairman of Committees of the House of Commons, in joining the society organised to deal with the evil, stated that his doing so was owing to finding that it had penetrated to the rustic neighbourhood adjoining his Devonshire home. The strange increase in village telegrams on race days has become very noticeable, and charges of tampering with messages to cheat bookmakers are becoming quite common. Such facts, and others, incline those who have studied the subject to consider that the estimate adopted by Sir Robert Giffen at the last meeting of the British Association, in the Economic Science Section, during a discussion on the nation’s wealth, of £5,000,000 per annum as going into the pockets of bookmakers, is a very conservative one.

As to the condition of the race-courses themselves, from the ruffianism of the professional betting men and their hangers-on, interesting revelations were made before the close of the nineteenth century by the efforts of one of the great London daily newspapers. It is not needful to quote the comments drawn forth by the journals friendly to reform, as those in favour of the institution of the Turf are sufficiently pungent. A few of these will suffice. Thus The Field, August 20, 1898:—

The meeting at Epsom is then criticised, but we must devote our little space to the following, also from The Field:—

Here is an extract from one of the letters which appeared at the time:—

There were scores of such public communications. One racing correspondent of a large provincial paper stated that he should never think of going to the course without a revolver in his pocket. Of course the so-called sporting and publicans’ papers tried to make out that these letters were not genuine, or were exaggerated, but without exception they bear on their face evidence of their reality. The writer of these lines, however, ascertained the fact of their genuineness from the editor who published them in one of the largest and oldest of our daily newspapers, which has been by no means otherwise conspicuous in this phase of social reform. We may be allowed to quote the following reflections, which witness to the existence of this ruffianly condition of the Turf, from Mr. George Gissing’s Private Papers of Henry Rycroft (1903), pp. 43-44:—

For a good insight from a bookmaker’s point of view of the “sport of kings” the reader is referred to Sixty Years on the Turf, by George Hodgman.

Bad as all this is, the continued permission of existence to these scores of peripatetic gambling hells would be an isolated evil were it not inextricably mixed up indirectly with the daily life of the masses of the population, who very seldom or never visit the courses. But these baneful institutions and the gambling clubs are fed by the life-blood of the people, whose hard-earned money flows by the thousand retail conduits of street and factory bookmakers to these gambling marts and clearing houses. It is not only where working men and women gather in numbers, but in the home, amongst domestic servants of both sexes, in the shop, the office, on the journey, in educational establishments, even in the Sunday school and the juvenile social club and class, that betting is discovered. A lady who devotes her life to the young, and lives among them in a poor part of London, says that she has very little difficulty about drink amongst the youths, but hardly dare attack the betting systematically for fear of losing her protÉgÉs. She found one lad actually receiving telegrams from France during the Continental racing season.

An alarming development, for those who travel by rail (and who does not?), is disclosed in several cases of signalmen having been found gambling and carrying on bookmakers’ businesses. Any one who, like the writer, has been in a railway collision, will vividly appreciate this. The crunch of the carriages, the awful succeeding moment between life and death, are among the ills that mortality is heir to in modern times, and are borne with more or less philosophy, to some extent perhaps depending upon the preventibility of the cause. But it will be well for railway directors, many of whom provide special facilities for the race-course gamesters all through the summer, to the inconvenience of the ordinary traffic, and wink at the gambling which goes on in their carriages however illegal, to draw the line at signal-boxes being made places under the Act and their signalmen being bookmakers. The conviction recently of a signalman for bookmaking at Knaresborough is by no means a solitary instance. In reporting to the Board of Trade on the North British Railway collision at Lochmill siding, Major Pringle states that just before it occurred there were five persons in the signal-box playing games. There are reasons to fear that there are bookmakers’ agents in many of the large railway stations, carrying on their regular nefarious business with the staffs, and affecting the comfort and safety of the public. As to the race-course ruffians, whose patronage is so carefully nursed, they have been known to descend from race trains and relieve refreshment rooms of the provisions without payment, so that it is now the practice in some places to clear them of their contents before the advent of these traffic-cherished caravans.

There could be no greater mistake than to suppose that such cases as that of the clerk through whom the bookmakers robbed the Liverpool Bank of £170,000 (1901), or of the man who began life as a ready-money bookmaker, married into a titled family, was presented at Court, made a member of fashionable clubs, owned the best race-horse of the year, and ended his society career in his cross-examination in the High Court (1904), are exceptional beyond the fact of their striking notoriety. All sections of society are more or less corrupted by the gambling habits prevalent, and particularly by the professional betting system. It would be interesting to trace how many of the unhappy people figuring in the Divorce Court have been connected with the Turf.

In the Civil Service the evil has spread most seriously in the Post Office and Police departments, but is not confined to them. Information having been sent to the writer of this paper that a clerk in a Government office was using the public stationery and other conveniences to issue betting lists from that office, personal application was made to the principal of the establishment, who investigated the matter, found the allegation to be correct, and promptly put a stop to the proceeding. Upon another occasion it was discovered that two clerks were hired to spend their two-day holiday from Civil Service work by the betting men financially interested in a race meeting, who employed them in taking the entrance money to the rings. Having lost a good deal by dishonest janitors, these shrewd speculators had secured the services of individuals who dared run no risk.

The published opinions of such men as Field-Marshal Sir George White, General Wavell, Lord Charles Beresford, Admiral Rawson, and others bear eloquent testimony to the fact that the militant Services are suffering from the immunity obtained by professional gamesters, owing to the lax application of our existing laws and the need for others. The soldiers returning from South Africa were systematically induced by gamblers to part with their savings; and is it not probable that some of the regrettable incidents during the South African campaign, which the nation had to deplore, arose in part from the time of our officers in peace, if not in war, having been occupied more with betting and gambling than in the study of their profession? Many items of information, both of a private and public nature, are alarmingly suggestive of such considerations. A single instance of the latter may be found space for. One of the witnesses before the Select Committee of the House of Lords was an officer commanding a battalion of the Scots Guards, and he gave evidence of the fact that he was a sort of chairman of a betting committee, the go-between of the Jockey Club and Tattersall’s, upon which he spent a considerable portion of his time, the principal duty apparently being to settle betting squabbles between members of the betting clubs and the professional betting men. If this is not considered infra dig. for the colonel of a crack regiment, what is to be expected of the rank and file? His colleagues upon this important tribunal included, he said, a representative of the Ring and two well-known commission agents, the trade alias for bookmakers. We have no hesitation in saying that the Navy is as badly tainted, not only upon the evidence of officers whom we have mentioned and others, but on information from different sources. It was the painful duty of one in authority some time ago to court-martial a young comrade who had got into the hands of bookmakers, and took £200 to pay his debts from funds which, as orderly officer of the mess, he was able to lay hands upon. He was dismissed the Service and suffered a year’s imprisonment. In 1904 Rear-Admiral Henderson, Superintendent of Devonport Dockyard, discovered that betting was being systematically carried on, and published an order notifying the discharge of a skilled labourer of nineteen years’ service.

Professional betting is not confined to horse-racing. Lists are habitually issued in connection with other sports, particularly football. It is gambling which causes the rush for the football editions of the halfpenny journals, and, notwithstanding the efforts made by some of its principal patrons, leading officials of the football world have been found taking part in the disreputable gambling arrangements of sporting newspapers. There are numerous instances in athletics, such as foot-racing, of the proceedings being reduced to a farce by the bookmakers, who controlled the runners; and more than one serious accident on the cycle track has been caused by the efforts of one or more competitors to obey the roping orders from their masters in the ring without arousing the suspicions of the public spectators.

Gambling

Cards

In miscellaneous gambling, cards, harmless in themselves, are still prominent. The game of Bridge amongst the wealthier classes is responsible for reproducing many of the vicious situations we read of in the chronicles of our forefathers. While Queen Victoria was lying dead, one very prominent female society leader could not be got to abstain from this form of gambling even for a brief space. At the aristocratic mansion over which she presides guests must play. One young man of moderate income suggested that his means were quite unequal to such hazards as the hostess and her friends were accustomed to, but he was given to understand that he could play or leave. He unhappily chose the former alternative, and in a few hours lost half-a-year’s income. There are hundreds of smaller imitators of this woman, whose husband ranks high in the political world. The disgusting position is frequently created of young girls, not discouraged from gambling by their parents, losing money which they have difficulty in paying to men with whom they are not otherwise well acquainted. In speaking to a young lady who moves in society circles, and on inquiring with due diffidence as to her knowledge of gambling among the friends of her family, she said, without the slightest hesitation, “Oh, every one we know gambles.” One of the speakers at the council meeting of a ladies’ association, of which Lady Trevelyan is president, said that a society lady, on a friend observing that £150 a year seemed a small allowance for her daughter, replied that the latter was such a good Bridge player that she easily made £1000 a year.

Amongst the poor, where horse-race betting does not prevail, cards, to which juveniles are largely taking, as well as automatic machine gambling, are often made the vehicle for disposing of their small means.

The Stock and Produce Exchanges

A very large proportion of the business done upon the Stock Exchange is nothing else than gambling. No stock passes. It is merely gambling in the rise or fall for differences. Here, as elsewhere, neglect, for which the whole nation is to blame, has allowed matters to get into a groove, and great difficulty will be found in getting out of it. In another chapter suggestions are made, and if the proposed remedy is necessarily a serious one for those whose business is to a great extent founded upon an illegitimate basis, some of them at least feel that the present system is indefensible, and the following pathetic extracts from a letter written by a member of a leading Stock Exchange firm merely express the conscientious misgivings of the best class of men there—misgivings which are more or less shared by all but the hardened gamblers of the establishment:—

The above remarks also apply to the produce and metal exchanges. The misery caused in Lancashire and elsewhere by American gamblers cornering the cotton market is calling the attention of merchants to this branch of the subject, and with a little goodwill on the part of the Governments concerned there should be no insuperable difficulty in framing regulations which will greatly hamper, if not destroy, the possibility in future of such proceedings.

Condition of the Country

Thus in England, at the commencement of the twentieth century, the world of society, commerce, finance, and athletic sport is saturated with gambling, more or less veiled or entirely open. Individual and family ruin from it in all classes is frequent; and there are thousands of cases stopping short of this, but entailing, besides material loss and suffering, the lowering of the moral and mental nature, thus affecting the intellectual and religious fibre of the people. But the evil to the nation does not stop here. Until lately, at all events, the highest Courts of Law, as well as the lower ones, did not escape the indirect taint, and even now politicians and office-holders, who would be ostracised in Japan, continue to allow themselves, and very often their households, to be deeply involved in gambling transactions in their homes, their clubs, and with low practitioners of the race-course ring, their children in numberless cases copying the evil habit. A young heir to a peerage, a candidate for a seat in Parliament, whose father is considered to be a great political light and would wish it to be supposed that he is not without reforming zeal, although fencing with the question of the betting ring, boasted to a companion of his sudden acquisition of £2000, laughing at the idea of having worked for it, and explained that it came from the bookmakers at one meeting. The public services are corrupted, particularly the Police and the Post Office, the latter institution rendering many unnecessary services to the gambling system, in the profits of which it largely shares, and not making the special efforts which we see in the United States and elsewhere to hamper professional gambling. The nation as a whole is, it may be hoped, too healthy in a moral sense to allow a further continuance of this social plague without a great effort to grapple with it; but the bitter experience of the nineteenth century demonstrates how futile it would be to rely solely, or even to any great extent, upon the unaided attempts of educational persuasion to root it out. These, indeed, must not be relaxed, they must be increased and multiplied, and should be supplemented by more extensive and systematic endeavours, aiming at improved conditions of life for the poor, and further amelioration of health, and opportunities for recreation; but betting and gambling should also be made, as they can be made, by amended and better applied legal regulations, far less profitable, and more difficult, dangerous, and disgraceful, whether for the rich or the needy. There need be no real interference with the liberty of the subject; for that liberty, regarded in a true light, should not confer any licence to trade upon the ignorance, weakness, or folly of others, which is the characteristic of all gamesters, and not least of those belonging to the professional betting system.