Business & Finance: Fair Business

Most uncertain of businesses is the show business. Most uncertain of show businesses are world's fairs because 1) they require huge investment, 2) they require huger ballyhoo, 3) their impresarios are generally businessmen, not trained showmen. Last week Chicago closed its second venture in this dangerous business—supposed to close Oct. 31 but prolonged through twelve chill and unprofitable November days—and began to take stock.

Like opera, world's fairs are not expected to be selfsupporting. Rich men make up opera deficits for the sake of social prestige or love of music. Mer chants make up world's fair deficits because world's fairs bring them business. Of first importance therefore is: how many people does a fair draw? A Century of Progress collected 22,320,000 paid admissions in its 170 days of operation by comparison with 21,480,000 for Chicago's famed Columbian Exposition (179 days in 1893). To estimate drawing power of the two fairs: weigh the growth of U. S. population from 62,000,000 to 122,000,000 against the relative severity of Depression in 1893 and in 1933.

Of gravest concern to Chief Impresario Rufus Dawes last week was the final profit and loss standing of his enterprise. Estimated total amount spent on the show was $32,529,000, but a considerable part of this was spent by exhibitors and concessionaires. When the Fair opened, its total liabilities were $13,202,000 of which $9,750,000 represented a bond issue subscribed by Chicagoans. Three days before closing, revenue from admissions was $8,913,000, from concessions $3,055,000. Expenses were $4,913,000. With adjustments for lesser items net operating profit was $7,454,000. Remaining liabilities: $4,867,000.

Concessionaires. The profits of the 887 concessionaires and subconcessionaires have not been made public. Some of them leased their concessions at a flat rate but most of them were on a royalty basis so that their gross take was known: $27,000,000. Receipts of concessions at the southern end of the three-and-a-half mile long fair grounds were a disappointment although they improved as the summer wore on. Down there, "Mexico" and "Wings of a Century" became good attractions. The latter lost $20,000 a week at first, made money by midsummer, played to capacity crowds by Aug. 1.

Public tastes changed as the seasons changed. The notorious "Streets of Paris" which drew the biggest crowd at first, later played second fiddle to the Belgian Village, although it made better profits for the entire period. Only "Wings of a Century" and Ripley's "Believe It Or Not" Odditorium were able to maintain a 40¢ admission charge. Exclusive of admissions, average expenditure per visitor was $1.17.

Gross receipts of some concessionaires through Oct. 31:

Crown Foods, Inc. (40 sandwich stands & six grills) $1,685,000 Greyhound Bus Corp 1,577,000 Streets of Paris $1,465,000 Century News Inc. (guide books & souvenirs) 1,332,000 Eitel. Inc. (Old Heidelberg, Rotisserie, etc.) 1,138,000 College Inn Management, Inc. (Pabst Blue Ribbon Casino) 879,000 Sky ride 757,000 Pay Toilets 728,000 Belgian Village 637,000 Walgreen Co. (2 drug stores) 671,000* Ripley's "Believe It Or Not" 538,000