“Last-Minute Hitches Block Pooling of F. & R. and Saxe”

Headline: “Last-Minute Hitches Block Pooling of F. & R. and Saxe”

Minneapolis — Last minute hitches have caused postponement and possibly abandonment of proposed pooling of the Northwest Theaters (Finkelstein & Ruben) Minneapolis, and Saxe Enterprises, Milwaukee, circuits. Now other large circuits again are said to be angling for the F. & R. chain of around theaters in Minnesota, North and South Dakota and Wisconsin. There are approximately 45 houses in the Saxe chain, which is confined to Wisconsin.

John Saxe is declared to have balked at several angles of the proposed pool, which would have given F. & R. at least operating control of the combined firm, in what was declared to be the forerunner of a move to bring both circuits into the West Coast chain.

Publix and Universal, which are declared to have made overtures in the past, are said to be again active in seeking a deal with F. & R.

While those “in the know” declared that all negotiations were off, it was, nevertheless, significant that John Saxe was in Minneapolis several days the past week and although he stated that his visit here was in the interest of other business, he was said to have been in several lengthy conferences with officials of the F. & R. circuits. “Greater Amusements” says in commenting on the situation.

“Publix would, of course, welcome some kind of working arrangement with F. & R. to offset any loss that may be sustained by the Paramount distributing organization in the Northwest due to the erection of the new Publix house in Minneapolis, which will eventually cause a break between the Minneapolis firm and Paramount in the booking of the latter’s product in other F. & R. strongholds throughout the Northwest,” the publication states. “It is said that Paramount has already felt the sting of F. & R.’s resentment throughout the territory in retaliation for the invasion of Minneapolis, by Publix.

“Universal would naturally hold out the olive branch of both F. & R. and Saxe as a tie-in would materially strengthen that company’s theater position in the Middle West territory. In Wisconsin, Universal is operating in direct opposition to the Saxe circuit in nearly every spot in which it has a theater. An arrangement in the F. & R. field would also assure Universal more product than it now enjoys.

“It is possible that the real reason for the calling of? of the meeting said to have been scheduled for New York City last Monday was caused by the decision of the Federal Trade Commission, which would naturally cause a slowing up of any proposed theater pools. While the decision was rendered in the case against Paramount, it consequently affects all companies in a similar manner.”