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In 1944, compensation for "Miss America" switched from "furs and movie contracts" to college scholarships, an idea generally credited to Jean Bartel, Miss America 1943. In 1940, the title officially became "The Miss America Pageant" and the pageant was held in Atlantic City's Convention Hall. By 1938, a talent section was added to the competition, and contestants were required to have a chaperone. In 1935, Lenora Slaughter was hired to "re-invent" the pageant and served for 32 years as its Director.
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The pageant continued consistently over the next eight decades except for the years 1928–1932, when it was temporarily shut down due to financial problems associated with the Great Depression and suggestions that it promoted "loose morals." With its revival in 1933, 15-year-old Marian Bergeron won, prompting future contestants to be between the ages of 18 and 26. The 16-year-old winner from Washington, D.C., Margaret Gorman, was crowned the "Golden Mermaid" and won $100.
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A conflict ensued when the judges disqualified 22-year-old Lee at the last minute because she was deemed to be a professional rather than an amateur like the other contestants due to the fact that she was 1) a working actress, 2) married, and 3) a friend of the competition's chief judge. Out of the nine contestants, the two frontrunners were Virginia Lee and Margaret Gorman. If the local newspaper would pay for the winner's wardrobe, the Atlantic City Businessmen's League would pay for the contestant's travel to compete in the Inter-City Beauty Contest." Herb Test, a "newspaperman", coined the term for the winner: "Miss America." On September 8, 1921, 100,000 people gathered at the Boardwalk to watch the contestants from Washington, D.C., Pittsburgh, Harrisburg, Ocean City, Camden, Newark, New York City, and Philadelphia. The winners would participate in the Atlantic City contest. Thus, "newspapers as far west as Pittsburgh and as far south as Washington, D.C., were asked to sponsor local beauty contests. The event was scheduled to take place the week-end following Labor Day, to encourage summer visitors to stay in Atlantic City. The event was so successful that The Businessmen's League planned to repeat it the following year as a beauty pageant or a "bather's revue" (to capitalize on the popularity of newspaper-based beauty contests that used photo submissions). However, the main attractions were the young 'maidens' who sat in the rolling chairs, headed by a Miss Ernestine Cremona, who was dressed in a flowing white robe and represented 'Peace.'"
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Three hundred and fifty men pushed the chairs. This event was designed to bring business to the Boardwalk: "three hundred and fifty gaily decorated rolling wicker chairs were pushed along the parade route. Rather, the origins of the "Miss America Pageant" lie in an event entitled The Fall Frolic which was held on September 25, 1920, in Atlantic City. The winner, Edith Hyde Robbins Macartney, was called "Miss America." Neither the title nor this pageant were related to the current "Miss America Pageant" which would develop a year later in Atlantic City, New Jersey. On February 1, 1919, there was a beauty pageant held in the Chu Chin Chow Ball at the Hotel des Artistes in New York City.