Volume I: Narrative History

Chapter 7 (1914): Edwin Thanhouser's Plans

Variety reported on November 21, 1914:

Up in New Rochelle, where the Thanhouser Corporation has its studio, it is said that Edwin Thanhouser, who founded the corporation now bearing his name and who sold out nearly three years ago, is about to return to the picture industry in America. By the terms of the sale the once well-known stock company producer and manager disposed of his moving picture holdings for a sum said to be $300,000 and a specific understanding that he was to embark in no other film venture for a period of three years. This time limit expires next April, when it is generally understood Thanhouser will once more assume the management of a large picture producing company. There is no mention in the rumor of his allying himself with the corporation which now bears his name.

In the meantime, the former motion picture entrepreneur attracted the attention of several communities which were willing to provide financial support if he would locate a new studio there. An article in The New Rochelle Pioneer, December 12th, took up the same subject:

Edwin Thanhouser, a resident of Rochelle Heights for a number of years and organizer of the local motion picture corporation which still bears his name, is back in the field again and is seeking a site to establish a studio and office in Mount Vernon for the production of films.

Mr. Thanhouser, who now resides at 435 Riverside Drive, New York City, who sold out his local interests when it was agreed that he should not return to the producing field until the expiration of a certain number of years, has already broached the subject to Mayor Edwin W. Fiske, of Mount Vernon, who is using his efforts to interest real estate owners of that place in the proposition.

For the last two years Mr. Thanhouser has been in Europe, where he has been a close observer of the methods of the cinematograph studios. Recently he returned from abroad with the intention of forming a new company and resuming the manufacture of films. He is restrained from beginning the actual work until April 6, 1915, the date when his agreement with the Thanhouser Corporation expires, but in the meantime he has been looking around for a site. Mount Vernon attracted his attention, as did several places in New Jersey, but at a recent conference between Mr. Thanhouser and Mayor Fiske, the mayor was informed that the moving picture man has decided to locate there permanently if somebody can be found who will build a factory on which he will take a lease for a long term of years.

What is needed is a plot of ground from one to two acres in area at a place where adjacent land can be acquired when the company branches out in the future. The site will have to be easily accessible to modes of transit; that is, convenient to stations. The studio and office building required to meet the wants of Mr. Thanhouser will cost between $20,000 and $25,000. He would take a long lease which would warrant the construction of such a plant.

The entire matter of obtaining an investor to build the studio has been placed in Mayor Fiske's charge by Mr. Thanhouser. All the transactions will be done through the mayor, who is acting in the matter simply as chief executive of the city and not as a real estate dealer. He will receive no remuneration for his work, except the satisfaction of knowing that he is doing something for the betterment of Mount Vernon. If Mr. Thanhouser receives any propositions direct from Mount Vernon real estate owners or prospective investors these will be referred to Mayor Fiske.

The New Rochelle Pioneer told more on December 19, 1914:

In spite of the fact that he is being approached by prospective investors from Mount Vernon and Pelham, Edwin Thanhouser, the motion picture magnate who sold out his interests to the late Charles J. Hite, of the corporation which still retains the former's name, feels very favorable towards New Rochelle as regards the establishment of his new studios, and at a conference in the office of the New Rochelle Association Monday morning he told a representative group of men of this city that if the necessary details could be arranged he would be glad to come back to this city and resume business here.

At the conference, which was attended by former comptroller Jere Milleman, president of the Association; Walter Drey, chairman of the Development Department; George M. Wood, chairman of the Real Estate Exchange; Harry Scott, vice-president of the Council; City Treasurer J. Albert Mahlstedt, Henry M. Lester, president of the National City Bank, and Alfred Schachat, secretary of the Association, Mr. Thanhouser spoke very freely about his plans. He said that his contract with the present corporation, restraining him from entering actual work again, would not expire until next April, when he could go back into business; that he had already made arrangements to market the films and would at the beginning resume business on at least as large a scale as when he sold out. With the plans in view his salary roll would not be below $2,500 a week and undoubtedly would be many times that figure.

After Mr. Thanhouser left, the committee which met with him held a short conference to consider several matters. The question of available land was easily settled, and it is currently rumored that negotiations are under way for the Bonnie Brae property on the Boston Post Road. There are several other sites available which would answer the purpose as Mr. Thanhouser will only need about two or three acres of land which need not be centrally located. The building he will require will cost in the neighborhood of about $20,000 for erection, so the problem now is to find some site whose owner will go to this expense and lease it to Mr. Thanhouser, or some group of men who would be willing to invest that amount of money and receive a legitimate return on their investment, for the reliability of the magnate is beyond question. A group of men could go into the proposition from purely a business standpoint, leaving out of consideration any question of indirect benefit resulting from the salary roll which the company would bring here and the general advantages which would accrue to the city, such as rental of vacant houses, employment to many local people, advertisement for the city, increased sales for the merchants, etc.

As it will only confuse matters if too many people take up the proposition, Mr. Thanhouser expressed a preference to have all offers sent to the office of the New Rochelle Association, 224 Main Street, where anyone interested in the matter may receive further information. If he is to come here New Rochelleans will have to act quickly for in order to deliver his first releases on time Mr. Thanhouser must sign a lease without further delay, and as a last resort he may be forced to accept any of the several propositions which have been made to him from Mount Vernon and other cities.

The motion picture trade was informed of the situation in an article in The New York Dramatic Mirror, December 23, 1914:

THANHOUSER RETURNING? Edwin Thanhouser's period of absence from the picture game, following his sale of control of the Thanhouser Corporation to the late Charles J. Hite and associates, is apparently nearing its end. The founder of the Thanhouser Corporation, who was a leader in the rank of the Independents until his retirement a few years ago, is now looking around for a studio and factory site, and from all indications will probably settle down near his old stamping grounds, New Rochelle.

Mr. Thanhouser returned from Europe at the outbreak of the war, but no intimation was given then of his attention to return to the game. On last Thursday he is said to have had a conference with Mayor Fiske, of Mount Vernon, over the possibilities of finding a suitable site in that city. That the plans have been maturing for some time is evident from the fact that propositions have been made to Mr. Thanhouser to locate in Pelham, Eastchester, and Tuckahoe.

New Rochelle's interest in Edwin Thanhouser's new company was reiterated in The New Rochelle Pioneer, December 26:

New Rochelle has a chance to secure the new factory Edwin Thanhouser is desirous of establishing, provided someone is willing to make an investment. Mr. Thanhouser wants no concessions in the way of tax exemptions or bonuses; all he wants is a suitable building, and we should have someone who is prepared to make a profitable investment for himself and prove at the same time a public benefactor. It is seldom that such an opportunity presents itself, and it is one that we cannot afford to neglect."Mr. Thanhouser asks that a building be provided, but he does not ask free rent. He is willing to sign a long lease and thus insure the investor some profit on the money expended. This seems like such a good opportunity that we shall be greatly surprised, and as equally disappointed, if the matter is not arranged speedily. Merchants especially will be interested in the success of this enterprise. It will mean a great deal to the retail business circles of the city to have another big industrial concern located here. It is also of importance to owners of rentable property to have new industries come here. Altogether it is of vast importance to the whole city to secure such additions to our present industries. We hope the efforts initiated so energetically by the New Rochelle Association will be crowned with success immediately.

For the preceding half year, conditions had been difficult in the motion picture industry, due to uncertainties arising from the war in Europe. Most studios on the continent were shuttered, and in America there was an air of caution. A number of studios announced layoffs, and in general there was a mood of pessimism. At the Thanhouser Film Corporation studio in New Rochelle this was exacerbated by the continuing problems under the management of Dr. W. Edgar Shallenberger and Dr. Addison E. Jones. Key employees continued to defect. Note