In 1896, they joined with theatre operators Al Hayman, Charles Frohman, Samuel F. Nixon, and Fred Zimmerman to form the Theatrical Syndicate.

The operations of Klaw & Erlanger produced dozens of Broadway shows during the first three decades of the 20th century, including Dracula, Ben-Hur, and The Jazz Singer.

The enraged Shubert brothers Lee and Jacob began an all out campaign to wrestle power in the industry away from the Theatrical Syndicate.

[11] In 1919, after he dismissed out of hand the demands of the Actors' Equity Association, the labor union launched a strike that eventually shut down all the theatres in New York City, Chicago, and Boston.

The strike spelled the demise of his once powerful organization and the partnership of Klaw & Erlanger produced their last Broadway show in 1919 (The Velvet Lady).