Part II - The Syndicate
While these early circuits brought some organization to the often chaotic process of theaters across the country trying to book a season of shows, they generally did not work together, and there was no coordinated ability to tie the nation’s theaters together in any way.
So in 1896, leaders of six of the most important circuits and producing organizations in the nation got together and organized the Theatrical Syndicate. Al Hayman, Charles Frohman, Nixon & Zimmerman, and Klaw & Erlanger combined forces and created what was to become the largest and most powerful theatrical organization that had ever existed. The Syndicate agreements provided that the owners of the theater chains would work together in booking their theaters. The Syndicate organization itself never owned any theaters or produced any shows -- but its partners did. Once established, the Syndicate also arranged to book independent theaters and small circuits far beyond those controlled by the six partners. It provided a service to the owners and managers of theaters, and to the producers of shows. The Syndicate’s income came from both sides, the theater and the show. It provided shows to theaters, and took as its fee a percentage of the show's share of ticket sales; and it provided theaters for shows, and took as its fee a percentage of the theatre's share of receipts. With hundreds of shows on tour to thousands of theaters, this centralization was not just inevitable, it was good business.
The Syndicate grew from 53 theaters in 1897 to 83 in 1903. These theaters were leased, owned or operated by the Syndicate. But more importantly, the Syndicate also booked over 500 theaters at the same time. The group seems to have peaked at around 700 theaters, although some reports said they were responsible for 1,000 theaters. The number of theaters any circuit reported was always in flux and theaters constantly came and went from its control.
However, as is sometimes the case, centralized control eventually leads to monopoly control. The Syndicate eventually booked so many theaters that if a show did not agree to its terms, the Syndicate could block it from any other important theater to perform in, and if a theater did not agree to its terms, it could not get any popular show to perform there. As a result, more and more theaters and shows had to join up, or they would be squeezed out of business.
The system generally worked exceptionally well. Business was terrific. In the early years of the 20th century the road show was king. The road tour evolved over the years, but it was not just the major cities that attracted shows, it was also the smaller towns between the big cities. In 1913, there were a reported 5,000 theaters in 3,500 cities and towns. There were theaters everywhere. Every town had one. Or more than one.
The efficiencies brought by the Syndicate were enormously beneficial to the industry. One may argue how much credit the Syndicate should get, but the numbers are clear. According to the New York Dramatic Mirror, before the opening of the 1900-1901 season, there were 408 companies in production. They included 224 dramas, 88 comedies, 19 comic opera and musical comedy, 31 vaudeville, burlesque and extravaganzas, 15 minstrels, 24 stock, and 7 miscellaneous shows.
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While 408 shows presenting at one time seems enormous, when one considers that there were thousands of theaters, what filled those other halls must have been lesser productions, or stock, or locally produced shows.
What made the road tour possible and profitable was a good route. The big theater in the big city was where most of the money could be made, but to avoid having railroad costs cut too deeply into the receipts, the jumps between the cities had to be broken into one or two-night stands in the small towns between them. In this way, the railroad fares would not increase substantially, but the potential box office receipts would help significantly defray the costs.
But the fact was that as many as 70% of these small-town theaters were inadequate for the presentation of first-class productions. Many of them escaped the grip of the Syndicate because they were mostly small one-night theaters that were not important to the Syndicate.