16 AUGUST 1946, Page 13

FOOTBALL POOLS' FINANCE

SIR,—In defending the above your correspondent, J. Dwyer, makes an assumption that has for far too long been unchallenged, viz., that a 5 per cent, clear profit for the promoter is "surely a reasonable figure." It is true that in the early days of this ramp a Commission recommended this cost-plus system, but it was surely an ill-judged solution. Clearly the brokerage is excessive. For the promoter it amounts to a gilt-edged security bearing 5 per cent, interest without even the capital being invested, in return for nothing at ail, such " services " as might be claimed being covered by "expenses," which are thereby encouraged to be as lavish as possible on advertisement, office and any other expenses he can think of. gven then, a genuine gilt-edged security only carries a 21- per cent. interest.

I suggest, Sir, that were the 5 per cent: gross this would have the desired effect of limiting the lavish advertising and grandiose extravagance

now employed.—! am, Sir, yours faithfully, F. D. 1VIERRALLS. Lynchmere Green, Haslemere.