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Ernest Frederick Wallace was born to a middle class family living in west London. His father was a former lieutenant in the Gordon Highlanders who had a series of financial disasters when he entered commercial life. Ernest was of independent means and entered the theatre shortly after his marriage to Ellen Rose Madeline Luff and toured in productions of "Sue" and "The Great Ruby". He progressed to theatrical management - at one time being the agent for Anna Pavolva - and then from 1918 into British silent films in supporting roles. His wife later married comedian and theatre impresario Joseph (Joe) Peterman (nee Hobinstock).