It was founded in 1909 as the West Coast production unit of the Centaur Film Company located in Bayonne, New Jersey.

The California weather allowed for year-round filming and the ambitious studio operated three principal divisions under its Canadian-born general manager, Al Christie.

Christie moved permanently to Southern California from the East, where he had been working with the Horsleys creating the popular silent-era Mutt and Jeff comedy shorts.

In addition to running the operation, Christie oversaw a weekly production of a one-reel Mutt and Jeff episode.

The Horsley brothers remained in New Jersey, where their laboratory and offices handled the Hollywood studio's film processing and distribution.