He toured with P. T. Barnum as a roustabout, then in 1885 he partnered with Benjamin Franklin Keith in operating the Bijou Theatre in Boston, Massachusetts. With the success of their business, it grew into the Keith-Albee theatre circuit of vaudeville theatres. Albee gradually took managerial control of Keith's theatrical circuit. They were the first to introduce moving pictures in the United States. In 1900, Pat Shea of Buffalo proposed to Keith and Albee that they should set up a shared booking arrangement for vaudeville similar to the Theatrical Syndicate. They called a meeting in May 1900 in Boston of most of the major vaudeville managers, including Weber & Fields, Tony Pastor, Hyde & Behman of Brooklyn, Kohl & Castle, Colonel J.D. Hopkins, and Meyerfield & Beck of the Orpheum Circuit of the western United States. They did not invite Frederick Freeman Proctor, Keith's main competitor, but the other managers objected to this and insisted on a meeting in New York where Proctor was invited. The Vaudeville Managers Association was founded at the New York meeting. Keith and Albee dominated the new organization. Albee was president of the VMA's United Bookings Office from its formation in 1906. Albee had most of the major vaudeville circuits give him control of their theatrical bookings where he charged acts a 5% commission. When performers tried to form a union, he set up National Vaudeville Artists and made membership in it a requirement for booking through his company. His partner Keith died in Palm Beach, Florida in 1914. He formed the Keith-Albee-Orpheum corporation on January 28, 1928 with Joseph P. Kennedy. Radio Corporation of America bought his company and formed RKO Pictures and turned the Orpheum vaudeville circuit into a chain of movie theaters.
Anecdotes
Many entertainers considered Albee's tactics tyrannical. Groucho Marx referred to the United Bookings Office as "Albee's Gestapo". Joe Frisco summed up the impression of power Albee made; exiting Albee's office into a street under construction, his agent wondered why the street was being torn up and Frisco quipped, "Albee's kid lost his ball." Albee appears as a minor character in the film Yankee Doodle Dandy and in the 1968 Broadway musical, George M!.
Personal life
Albee married Lauretta Frances Smith, with whom he had:
Albee
Edward Albee, who died young
Reed A. Albee, who married Louise Holmes Williams, an actress, in 1914. They divorced in 1925 and in the same year, he married Frances Cotter.
Ethel Keith Albee, who married Edwin George Lauder Jr. in 1914. They divorced in 1941.