“Saxe Reported in New Dickers for Hook-Up”

Headline: “Saxe Reported in New Dickers for Hook-Up”

Subhead: “U” Held Negotiating in Move to End Chains' Opposition

Washington—With the proposed deal with Northwest Theaters (Finkelstein & Ruben) off, for the time being at least. Saxe Enterprises are reported flirting with other circuits in a move to sell or affiliate the chain.

Prominently mentioned in connection with these deliberations is Universal, and the recent visit of- Dan Michalove to the Middle West is declared to have been prompted by reported hitch in closing the F. & R.-Saxe deal, which became public after it had been generally believed the deal was practically set, lends strength to the report of a possible Saxe and Universal hook-up.

Saxe and Universal are waging a lively acquisition campaign throughout this territory. A proposed tie-up would eliminate this situation, which is emphasized here in Milwaukee where the circuits are at trips in both downtown and suburban fields.

Saxe occupies a strong position in the first run field, with Universal practically the only opposition. With its one downtown house, the Alhambra, Universal is making a bid for first honors downtown against the larger and newer Wisconsin, ace house of the several in the loop operated by Saxe. In the outskirts. Universal has more houses. The suburbs, in fact, are proving stiff comi)etition for the downtown district, through strong programs. Universal is building at Racine, Kenosha and Sheboygan, and is understood to be planning other houses most of which will be in direct opposition to Saxe.

Saxe some time ago was dickering with Publix, which had practically closed for a 25 per cent interest in the chain. Under the deal, Publix was to step in and operate the Milwaukee negotiations between the two firms. Michalove’s visit and the Milwaukee houses, while Saxe would retain control out-of-town. This deal, however, also developed a last minute hitch and deliberations since have been dropped.

Third factor in the situation throughout the state is Fischer’s Paramount Theaters, which has announced a building program for principal cities of the slate, a majority of which would line up against Saxe. The two firms have waged a spirited opposition in overseated Fond du Lac. Saxe is building against Fischer at Madison, while Fischer is entering Oshkosh.