The Nation: Heavy Handicap

Almost every race horse carries into each race the hopes and dreams of an ephemeral fan club: the men and women who placed bets on him just moments before. But Knight Counter, a highly successful five-year-old, has a permanent cheering squad—the 12,000 depositors of the defunct Prudential Building & Loan Association in Louisville.

A local judge ruled last month that Robert Huffman, a former auditor of the bankrupt association, could pay off the $28,555.65 he owed with the winnings of Knight Counter, his most visible asset. After the ruling went into effect, Knight Counter won two second-place purses at Liberty Bell in...

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