Volume I: Narrative History

Chapter 9: 1916 The Alliance with Pathé

During the end of June and all of July there was very little news about Thanhouser printed in the trade publications. Suddenly a steady, long-term advertiser dropped from view, and scarcely a mention was made of it.

On August 1, 1916 an article in Exhibitors Herald related that Mutual was reorganizing and planned to upgrade its program. John R. Freuler was said to be deep in conferences. "While Mutual is expanding it is also consolidating. When all of this work of reorganization is complete, we may now expect to see something new and remarkable in the way of master companies." Mutual was to improve its service and give buyers a better value.

Then the account related: "Thanhouser is out, it is said. Edwin Thanhouser will no longer release his pictures on the Mutual program. How long the promised Classics will come upon the market is not yet stated; rumor has it that the New Rochelle company is negotiating with Paramount. Or Thanhouser may release the pictures separately on a states rights basis. 'The Wizard of New Rochelle' himself is busy with conferences. Like most of the other big men who are busy with meetings and conferences for the greater part of each day he 'has no statement to make at the moment.'"

In late August more news appeared in various trade journals and newspapers. The following account from The Motion Picture Mail, July 22, 1916, is typical:

The Thanhouser Film Corporation, one of the pioneers of the motion picture industry, announces that arrangements have been made with Pathé for the release of two five-reel features per month on Pathé's greater program of Gold Rooster plays, beginning in August. The contract was signed Wednesday, July 12, by J.A. Berst, vice president and general manager of Pathé Exchange, Inc., and Edwin Thanhouser, president of the Thanhouser Film Corporation.

This announcement sets at rest many rumors which have been circulated since Thanhouser announced it would no longer release on the Mutual program. Note That Pathé had secured the pictures of this great producing company came as a distinct surprise. "I take great pleasure in announcing an alliance with Pathé," Mr. Thanhouser said to an interviewer in his home in New Rochelle. "Our decision was based on a careful investigation of the motion picture field. I am familiar with his [Berst's] plans for the expansion of Pathé's activities in America, and I am glad that we have been able to make arrangements to release our output through a concern with such an enviable reputation."

Thanhouser's new policy will be one-fourth the number of reels and four times the quality. Thanhouser has the resources and the ability to carry out these plans. Edwin Thanhouser is a producing genius; W.E. Shallenberger is one of the creative minds of the industry; and Crawford Livingston is the well-known banker to whom is due credit for some of the greatest developments in the motion picture industry.

Mr. Berst was equally enthusiastic about having gained the Thanhouser product for the Pathé program. He made the following statement: "Thanhouser pictures have been known and admired by exhibitors and public alike for years. The Thanhouser Film Corporation achieved success in the early days of the industry. Each year it has made its success still greater. The Thanhouser people know the picture business from the ground up. The first features they have made for release through Pathé are excellent. Mr. Thanhouser and his associates are broad-minded and able men with whom it is a pleasure to be associated in a business way.

"Our combination with Thanhouser gives us more productions for the greater Pathé program. With Arrow, Astra, Balboa, Blaché, and Thanhouser, with contracts for picture rights to the stage successes of Al H. Woods and Henry W. Savage, and with a staff which includes some of America's best playwrights, we guarantee future releases up to the standard of At Bay, Via Wireless, Madame X, The Woman's Law, and New York, which rank among the greatest features ever produced. Pathé feature releases compare with Pathé serials and Pathé News."

Negotiations looking toward the alliance between Thanhouser and Pathé were begun some time ago between Mr. Berst and Mr. Shallenberger, president of the Arrow Film Corporation, which releases its features and the Who's Guilty? series through Pathé. Mr. Shallenberger is the largest individual stockholder in the Thanhouser Film Corporation.

On August 19th The Motion Picture Mail commented: "With four companies at work on new features and with a number of the big productions already completed, the Thanhouser Film Corporation is splendidly prepared to keep its contract with the Pathé Exchange to release two first-class pictures a month.... Mr. Thanhouser is perfectly supervising every feature that he releases through Pathé, and is so far ahead in production that he never need rush to catch a release date. Every feature, therefore, is made perfect in every detail before it is released." The idea of producing films at leisure so as to assure quality was implemented by others in the industry, including by William A. Brady, who built a 1917 advertising campaign for the World Film Corporation upon this theme.