1968-Voice Of The Tennessee Walking Horse 1968 January Voice RS | Page 102

(Continued from page 80)
“One reason for the reluctance to sell a syndicated
horse may be the difficulty of getting a large group
of shareholders to admit that they all were wrong in
assessing his stud potential. As Mr. Doherty phrases
it: 'There is a slight financial disadvantage to syndi­
cation in that, if the horse is a lemon, you will have
difficulty in disposing of the shares.'
"In the case of a privately owned horse that fails
at stud, he can be dropped into an auction and allow­
ed to bring whatever he will, and the loss can be
"But a syndicated stallion, depending on the spe­
cific provisions of the syndicate agreement, can gen­
erally be auctioned only with the consent of a heavy
majority, or perhaps all, of the members. Individual
shares are usually auctioned only in the case of a
complete dispersal.
"To some extent this financial disadvantage of syn­
dication is offset by financial advantages, as Mr.
Doherty also points out: ’It entitles a man to make an
investment in a share or shares, and to depreciate on
that investment. Of course, stud fees are also deduct­
ible. But a share in a horse that becomes successful
may also appreciate in value. I’ve sold single seasons
to HOMAN for as much as a share originally cost.
There is an untax able appreciation that the man
doesn’t have to take until he wants to. There is that
gambling element to syndication.'
"Moreover, should a syndicated horse prove a suc­
cessful sire, the shareholder is protected against the
higher stud fe