 The company 's lead actress was Mildred Hutchinson and employed its staff to produce stories about fictional gnomes , specifically for child audiences . Hutchinson was a seasoned child actress at the time of the productions who had credits working with Edison , Vitagraph and <unk> the age of six . Records surrounding the release suggest that Alice in Funnyland , The Birth of the Gnomes and Alice 's New Year 's Party were never released . The venture ultimately failed and the City of New York sued Frederick Kalmbach , the company treasurer , for unpaid taxes on an assessment of $ 3 @,@ 000 . Kalmbach said that the Gnome Motion Picture Company was no longer conducting business when the assessment was made and the case was dismissed by the judge in 1918 . The last record of the Gnome Motion Picture Company in trade publications , in both announcements and advertisements , comes from a January 14 issue of Moving Picture World which announces all three of the films would be delayed for a " few days " . The American Film Institute still identifies all three films as having been released in January 1911 by Gnome . 
