The White Rats attempted to combat the monopolistic practices of the United Booking Office (UBO) and the Vaudeville Managers Association (VMA), groups formed by vaudeville theater managers to keep performers' wages low and control when and where performers were allowed to work.

It was based on the Grand Order of Water Rats, a British entertainment industry fraternity and charity.

The White Rats met on Twenty-third street in New York City, in a space above Koster & Bial's Music Hall between Broadway and Sixth Avenue.

Keith and Albee called a meeting with the performers in which they claimed they themselves had been against the 5% commission, and would ask the other members of the VMA to remove it.

In retaliation, Vaudeville managers, led by Albee, created a blacklist that prevented any known members of the White Rats from working in any of the 10,000 to 15,000 theaters under his control.