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Margaret Gray was born in Roswell, New Mexico. A short time later, the family moved to El Paso, Texas, where Margaret graduated from El Paso High School, winning a scholarship from the El Paso Women's Club. She enrolled at the University of Southern California, but after one year submitted to the lure of the movies. Her first film was an uncredited role in "The Third Degree (1926)", followed by bits "The Student Prince in Old Heidelberg (1927), "Don't Tell the Wife(1927)", and "Pals First(1928)".