Volume I: Narrative History

Chapter 9: 1916 The Pathé Exchange, Inc.

In the summer of 1916 the Pathé Exchange, Inc. maintained offices at 25 West 45th Street, New York City. The firm distributed films made by various production companies. But, there was no guarantee that any given Thanhouser film would be handled by Pathé. Rather, Edwin Thanhouser was put in the position of producing a film on speculation for review by a Pathé committee, which would then decide whether the Pathé Exchange would handle the distribution. Gone were the days of comfort and security when the Thanhouser Film Corporation could produce anything and it would be automatically distributed through the Mutual Film Corporation exchanges.

Pathé, a pioneer French film maker, had established an American branch when J.A. Berst arrived in New York from Paris on July 18, 1904. Note The first office was in cramped quarters on 23rd Street. The enterprise grew under Berst's management, and by 1917 there were fine offices on 45th Street occupying two floors of a modern office building, 30 branch offices in the United States, a factory at Bound Brook, New Jersey, and studios in Jersey City. Note

Variety, July 21, 1916, carried specific details of the new arrangement: "The Thanhouser-Pathé deal by which the producer of New Rochelle agrees to deliver 24 negatives a year to the Pathé Exchange is on the basis of a division of the gross at the rate of 65-35. Pathé agrees to use from 40 to 50 prints."

More information was found in an extract from an interview with Edwin Thanhouser printed in the July 29, 1916 issue of The New Rochelle Pioneer:

It is known that an important factor in Mr. Thanhouser's decision was the Pathé accounting system. The accounting system makes impossible much of the waste and inefficiency so common in many companies. It is known that Mr. Thanhouser was also influenced by the fact that every exhibitor in the United States is visited at least once a month by a salesman from one of the 30 Pathé exchanges.

"It is because of all these things that Pathé has been able to build up one of the most successful organizations in the industry," Mr. Thanhouser said. "Pathé knows how to market high class features as well as serials, and I know that the class of pictures we will bring to their program will assure even greater success. With our splendid facilities in our New Rochelle and Jacksonville studios we could turn out eight features a month. Instead we will concentrate on two productions every month. Three of these features have already been made. We have under contract excellent stars, authors and directors."...

The July 29th issue of The Moving Picture World featured a full page Thanhouser advertisement unimaginatively set in regular type. Perhaps former publicity director Leon J. Rubenstein's absence was being felt. The text noted: "Thanhouser Film Corporation announces that it has concentrated its powerful organization wholly upon the making of SUPERIOR FEATURE PLAYS with stars and stories of unquestioned excellence and drawing ability. Thanhouser photoplays, perfect in production, consistent in every detail, will set a new standard. The new Thanhouser feature productions are to be distributed through the Pathé Exchanges."

In the same issue a two-page advertisement by the Pathé Exchange, Inc. stated that beginning in August the Thanhouser Film Corporation would release through the Pathé Exchange.

Thanhouser will release two five-reel features each month on Pathé's greater program of Gold Rooster Plays. For a time Thanhouser produced about 40 reels per week. Some time ago they adopted the new policy of one-fourth the number of reels and four times the quality. We have seen the first six of these master features. They are great!

Edwin W. Thanhouser, genius of production, W.E. Shallenberger, one of the creative minds of the industry, Crawford Livingston, the famous banker, who has made possible some of the greatest achievements of the industry - These three men guarantee the super-excellence of Thanhouser productions. With the unrivaled facilities of their New Rochelle and Jacksonville studios, and their great financial resources, Thanhouser is now making features as great as it is possible to make them....

An article in the same issue gave details of the alliance with Pathé which had taken place since Thanhouser "withdrew" from the Mutual program.

A full-page advertisement in the August 12, 1916 issue of The Moving Picture World announced: "The Thanhouser Film Corporation's directors received these orders: 'Overlook no opportunity to make your picture perfect in every detail. Expense is secondary. Never call a scene finished until it is flawless in acting, direction, and setting.'

"At the Thanhouser studios there is no demoralizing scramble to catch a release date. So complete is the Thanhouser organization that it is always far ahead in production. Thanhouser takes infinite pains. That is why Thanhouser features have set a new standard of excellence." The advertisement noted that Thanhouser was located at New Rochelle and Jacksonville, with a branch office in London. Note

In the August 19, 1916 issue of The Moving Picture World an advertisement told more:

Any other producing company would be thoroughly satisfied with any feature that equaled Thanhouser quality. "Theirs is a standard good enough for anybody," they would say. Only an organization with the high ideals and splendid resources of the Thanhouser Film Corporation can make good what it declares: "Our latest picture is fine! But the next will be even better!"

Featured in this notice were the pictures of five Thanhouser players: Florence LaBadie, Frederick Warde, Gladys Hulette, Valkyrien, and Marie Shotwell, the last-named an actress who worked only briefly with the firm. Only Florence LaBadie had any claim to long tenure with the studio. Year in and year out she remained loyal to the Thanhouser banner while scores of other players came and went. In the same issue an article noted that Jeanne Eagels, a stage actress with a growing reputation, had been signed by Edwin Thanhouser to star in a special production to be called The World and the Woman. Eagels would go on to achieve fame and notoriety in other connections during the next decade.

In the meantime the Mutual program without Thanhouser was rather lame, although the Mutual Film Corporation was enjoying great success with its Chaplin films, which were released separately. The public continued to be confused concerning the comedian, for Essanay, for whom Chaplin had worked earlier, continued to advertise his earlier films heavily.

The August 26th issue of The Moving Picture World revealed that four production companies were busy making feature films under Edwin Thanhouser's personal supervision. Not mentioned was the drift away from stock players. Increasingly, actors and actresses were hired on a project basis for specific films. Much of the New Rochelle studio space was vacant, and the Jacksonville studio remained unused and served as a storage place for assorted props and equipment.